Feature: Charitable Causes, Promotion & Partnership
The changing face of charities
If the social climate for charities has changed down the years, so has the conditions they operate in. Whereas charities of old were arguably seen largely as acts of altruism, today they are big business.
The Institute of Fundraising’s (IoF) has stated that the combined income of voluntary organisations is estimated to be £39bn. Further, charities in the UK employ over 800,000 people.
While the majority of charities are run as businesses, funding from bodies such as local authorities have been crucial to a charity’s ability to operate effectively. In many cases, this source of funding has reduced dramatically.
This has a knock-on effect for fundraising opportunities. It also affects a charity’s ability to recruit at a
time when the need for charities appears to be as, if not more, important than ever. It’s led to what respondents to an IoF and PwC-led report have described as a ‘perfect storm’ of increased demand for services and a reduction in funding.
PwC summarises the challenges facing charities
in its A time for more change? Allowing charities to be fit for the future report, stating: “Charities were in danger of becoming the forgotten casualty of the economic downturn, with focus firmly on the public and private sectors. Now, the pressure on charities continues but this time as a result of austerity measures and an increased demand for services.” Not only does this mean charities are vying for money from a reduced pot, they’re having to be increasingly innovative, strategic and, essentially, competitive.
But is competition within the charitable sector a bad thing?
According to nfpSynergy, a research consultancy that delivers research and the insights to non- profits, competition among charities is something to be embraced. nfpSynergy’s It’s Competition, But Not As We
Know It report argues: "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 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.” Increasingly, charities are innovating and embracing sustainable, long-term partnerships, often with the private sector.
It’s a strategy 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. NPC, a charity think tank, has, in its report Collaborating for impact - Working in partnership to boost growth and improve outcomes, found a balance, stating: “Collaborations have the potential to transform the charity sector. When charities join up their successful services they 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.” What is certain is that the role charities play is undeniable.
The aforementioned PwC A time for more change? Allowing charities to be fit for the future report 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.”
East Midlands Chamber Directory 2018 19
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