FOCUS FEATURE
CHARITIES
organisations, because they are in an absolutely cut-throat, competitive environment. There are some very unpleasant dust-ups that go on between organisations." A similar theme continues among other organisations
that took part in the report, arguing that charities’ requirement to compete for funding has made them increasingly cautious about sharing information with others and has heightened their desire through necessity to protecting their own interests. Another unnamed organisation elaborates on this view
by saying that: "It is a sad fact that we are in competition with each other, not just for funding but sometimes for families as well." But is competition within the not-for-profit sector, specifically among charities, necessarily a bad thing? According to nfpSynergy, a research consultancy that
delivers research and the insights to non-profits, competition among charities is not only here to stay, it is something that can be embraced. nfpSynergy’s It’s Competition, But Not As We Know It
report argues that: "Competition is forcing many charities to re-evaluate who they are and how they do their work. There are many good examples from the commercial world of how people have used competition to be more effective, to be a force for good. "We can either accept this new reality and work out ways
for our organisations to deliver a superior performance, or we can hope that the pressures will disappear and life will somehow return to a previous golden era." It’s a view that was shared during a Guardian-hosted
roundtable discussion between executives from high-profile not-for-profit organisations, the newspaper surmising that: “The roundtable agreed that in an increasingly competitive and digitised world charities cannot afford to stand still. “Successful innovation demands proper funding, support
from everyone involved in an organisation, and a willingness to take risks. But charities also need to keep focused on the interests of the often vulnerable people they serve, and not get too distracted by the market. “Communication is key, so that board members, executives
and beneficiaries all understand the need to innovate and are confident that it is being done in the right way.” Increasingly, charities are innovating and embracing
sustainable, long-term partnerships, often with the private sector. At a time when charities are searching for additional revenue streams and businesses are looking to fulfil corporate social responsibility criteria, relationships between charities and private sector businesses certainly seem a logical and mutually-beneficial model. It’s a stance that many charities are adopting within the
not-for-profit sector itself. While a degree of competition is inevitable, the fact is that charities share many visions and values, not least the desire to affect positive change. It’s a strategy for charities that is fully endorsed by The
Charity Commission. It suggests that the drivers for, and benefits of, collaboration include reduced costs and lower overheads, increased reach of services, stronger campaigning, improved access to funding, improved learning and skills as well as the potential increase in public trust and confidence. However, there can never be a one-size-fits-all approach.
It would be wrong, and a generalisation, to suggest that collaboration between charities is a solution for all. Charities can vary greatly in terms of size, scope and objectives. Given the range of complexities and challenges facing the not-for-profit sector, collaboration may well be part of the answer but not always necessarily an out-and-out solution. NPC, a charity think tank, has, in its report Collaborating
for impact - Working in partnership to boost growth and improve outcomes, found a sensible balance. The report, co-written with the Impetus Trust, is
cautiously positive about the future of charity collaboration. It states that: “There are many benefits to collaboration, including improving outcomes for beneficiaries, allowing charities to scale up and learn from their partners, and increasing efficiency through sharing resources and finding new solutions to problems. “Collaborations have the potential to transform the charity sector. When charities join up their successful services they
32 business network December 2016/January 2017
can provide solutions to seemingly intractable problems: problems that are receiving substantial policy attention, such as troubled families or rehabilitation of offenders. “Collaborations can also help charities grow, reducing
fragmentation and allowing proven interventions to reach more people. Charities are seeing these benefits already; 67% of charities that have worked in consortia believe it has had a positive impact on their ability to deliver public services.” There is, however, a word of warning. “The widely heard message that charities should
collaborate does not help organisations understand when that route is right for them. It also hides the fact that charities are often not prepared for the requirements and challenges of getting a partnership up and running, and keeping it on track. “Collaboration, it turns out, is not a gift from the gods
but a skill that requires effort and practice.” So what can we surmise about the future of charities and
how they will continue to operate? As seems to be the case across the business community
at present in what is a turbulent time, not-for-profit organisations undoubtedly face difficult times and are encountering pressures that were perhaps not as extensive ten years or so ago. However, as we have seen, opportunities are out there for
non-profits and we’re likely to see a new age of innovation and adaptability within the sector born out of necessity. What is certain is that the important roles not-for-profit
organisations play both in the UK and on the international stage is undeniable and will continue to be so. The aforementioned PwC A time for more change?
Allowing charities to be fit for the future report aptly concludes: “There are real challenges facing the sector, but by tackling these head on and taking the initiative to change their organisations, charities can ensure sustainable and lasting improvements… enabling a greater focus on the charity’s reason for being - delivering on its values and charitable objectives.”
‘Competition is forcing many charities to re-evaluate who they are and how they do their work’
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