Andrew Hind Presentation

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• “A modern charity”
IN
• “The changing landscape”
What might it mean for the
overall charity ecosystem?
Paul’s ‘cooking ingredients’
•
•
•
•
•
•
Brightest thinkers/most skilled practitioners
Enterprising, growing (faster than competitors)
Strong brand, well-positioned with stakeholders
A strategic culture – analysing/planning
Financially sustainable
Delivering quality services, with like-minded
partners, that reduce crime
More impact and more influence
The UK charity universe in 2011
• 200,000 registered charities
• Total sector income over £50 billion
• Investments £80 billion
• Only 1,400 with income over £5m
• 160,000 with income <£25k
• 20% in the middle ground
Universal features of a ‘modern charity’?
• A strategic culture
• Financially sustainable
• Transparent and accountable
• Strong focus on outcomes and public
benefit
Payment by results
•
So the challenge for the voluntary sector is to gear up
for this
• And to shift its emphasis away from “can we find
someone to continue funding what we are already
doing” to:
o Will anyone want to buy and make use of our
products and services?
o Are there enough people out there who will want
to buy what we do?
o Can we provide our services within prescribed costs
and quality guidelines?
The changing landscape
• 38,000 charities receive a government grant or
deliver services under contract
• But 140,000 have no relationship with the state
• Government funding is 36% of sector income
• An increase from 27% in 1991
• There has been a major shift from grants to
contracts – 50/50 ten years ago; 25/75 now
Huge cuts in public spending
• £81bn of cuts over next four years to 2014-15
• Central government departments cut by 19%
• Funding to local authorities cut by up to 30%
• And two further years of cuts forecast yesterday
‘Big Society’ may lack traction, but
there are real changes appearing
• Localism Act 2011
• Remodelling public service delivery –
‘provider agnostic’ and payment-byresults
• New ideas around giving – social
finance
The sector’s ecosystem is changing
A squeezed middle
• The large, national household names are riding
the storm…
• …and community organisations continue to
thrive
• But life is getting tougher for middle-sized
organisations
Many service deliverers increasingly
dependent on state funding
• Will they become constrained in their
campaigning…
• …and/or relegated to role of largely powerless
sub-contractors?
• “Charities assisting commercial organisations to
maximise their profits” (NCIA)
The rise of social enterprise
• Big Society Capital has £600m to invest
over four years
• Will ‘traditional’ charities be able to
adjust to new forms of financing?
• What is social enterprise, and might it
be captured by for-profit interests?
It’s all about retaining public trust
and confidence
• Charity must retain its distinctive brand if public trust
is to remain high
2005 Mean Score: 6.3
23%
2005
2008
2008 Mean Score: 6.6
22%
22%
20%
19%
18%
11%
8%
10%
5%
3%
1%
0
Don’t trust
them at all
1%
3%
3%
6%
5%
4%
2%
1
2
3
4
5
6
Source: Ipsos MORI
7
8
9
10
Trust them
completely
Sector behaviour the public want to see
• Transparent and accountable
• Independent, non-political
• Brave and innovative
• Collaborative, not competitive
• Providing VFM, and delivering public
benefit
• Building public trust and confidence
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