latest
round-up
Pilot social investment bonds to cut reoffending
JUSTICE SECRETARY Jack Straw and Social Finance have launched a social investment scheme aimed at reducing the reoffending rate of short-term prisoners. The Social Impact Bond (SiB) pilot scheme will be funded by a range of investors including the private sector and charitable foundations, and provide voluntary support for six years to around 3,000 prisoners in Peterborough who have served less than 12 months. Financial returns to investors will
be based on improved social outcomes. If the initiative reduces reoffending
by 7.5 per cent or more compared with government schemes, investors will receive a share of government savings. If the SiB achieves greater success, investors will receive an increasing return, up to a maximum of 13 per cent. Social Finance will raise up to £5m
to fund the Peterborough Prison pilot. David Hutchison, chief executive of
Social Finance said future applications of the SiB might cover such programmes as enhanced support for foster carers, home care services for older people or nursing in the home for the chronically sick.
New report highlights IFRS issues
CHARITY ACCOUNTS COULD exclude all donated goods and services under the new International Financial Reporting Standards proposed for small and medium-sized enterprises, which charities may have to comply with. This is just one of the “potential big
issues” contained within the proposed new standard, according to a new report outlining its possible impact on charities by CFDG and BDO. Other potential issues include the prospect that borrowing costs could not be capitalised; mergers would have to be treated as takeovers, and related party donations would be disclosed.
Also, all grants would be treated as income immediately unless there were unfulfilled performance conditions relating to the grant. The report states that many of the
issues may be dealt with through the new public benefit standard that is being devised or new guidance from the Charity Commission, but warns that “as things currently stand” such issues are very much live. The report says it is important
for charities to understand how the SORP requirements are likely to change to comply with the international standards.
GuideStar finally lands at DSC
GUIDESTAR UK AND its subsidiary trading company GuideStar Data Services have become part of the Directory of Social Change. Ownership of the free public GuideStar website, which contains information about all UK charities, and the GuideStar Data Services (GDS) community interest company that leverages that information for use by third parties, passed from UK-registered charity GuideStar International to the DSC in mid-March. The DSC has pledged to maintain the
free website and also to explore ways of increasing access to the data for funders, campaigners, policy-makers and organisations delivering services. The database administered by GDS
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Charity Finance April 2010
comprises more than 400 searchable fields of data on 350,000 civil society organisations. GuideStar claims it is the only sector database that is compiled by analysing both the accounts and the narrative from every annual report, work that is carried out in Sri Lanka. The GuideStar UK website was established in March 2004 with £2.9m from the Treasury’s Invest to Save Budget and more than £1m from other funders. But despite further funding injections from trusts and foundations and support from GuideStar International, the organisation has always struggled to become self-sufficient. Neither DSC nor GuideStar International would disclose the terms of the deal.
IN BRIEF
European social bank meeting
The Euclid Network is to hold a meeting on the formation of a European Bank for Social Investment this month. The bank has been proposed as a wholesale lender to other social finance institutions. Euclid is aiming for a feasibility study to be completed by early 2010.
Female interims paid less
Female interim managers working in charities earned 15 per cent less than their male counterparts during the six months from June to December last year, new research by Russam GMS shows. Women charity interims earned an average of £466.50 a day compared with £537.50 per day for men. The disparity between men and women in the charity sector is twice as big as the difference between male and female interims generally.
Concerns over water concession
Charities and peers have asked for more clarity on new water charges for charities in the Flood Water and Management Bill, claiming that the new provision for charities to be billed “fair and affordable” water charges is not clear enough.
Schroder fund tops £100m
The Schroder Charity Multi Asset Fund, launched in June 2007, has grown by £25m since January and now exceeds £100m for the first time. It has attracted eight new investors in the fund year and was the best performing mixed charity fund in 2009.
CFDG creates Charity Banking Forum
CFDG is creating a forum to tackle banking issues faced by civil society organisations. Comprising CFDG members and representatives from the banking industry, it will let charities voice concerns on issues such as such as accounting and banking software, and training for the sector and for frontline bank staff on charity banking needs.
www.civilsociety.co.uk
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