1. The Crisis and the Third Sector:
es
or.org.e
An Opportunity for Social
cersecto
Transformation
Pau Vid l and L i Grabulosa
P Vidal d Laia G b l
ww.terc
8th July 2010
ISTR – 9th International Conference
ww

2. Index of contents
1.
1 The context of crisis: A new stage for CSOs
2. The ways in which CSOs are vulnerable
3. The impact of the crisis per type of CSOs
4. A ti
4 Actions to undertake to confront the crisis
t d t k t f t th i i
5. The other side of the crisis
2

3. Observatorio del Tercer Sector
Observatorio del Tercer Sector is an independent and
nonprofit research center specialized in the third sector. Its
aim i to deepen and i
i is d d increase the knowledge on the sector
h k l d h
and to work for the improvement of the nonprofit
organizations’ management.
Web: http://www observatoritercersector org
http://www.observatoritercersector.org
E-mail: observatori@observatoriotercersector.org
3

4. Observatorio del Tercer Sector (II)
The Values of the organization
Social Transformation. We work for the strengthen of the sector, as we believe it is
an active agent for social change.
Engagement. We work together with the third sector, within the sector, with the
participation and conformity of its organizations.
Independence. Independent in order to guarantee quality and opinion.
Quality. We work hard to achieve the maximum professional competence, offering
useful results with quality.
Learning. We are an organization that learns from its own experience.
Trust. We assume a commitment with collaboration and knowledge sharing.
Transparency. We are open with regard to information and communication about the
organization.
4

5. 1. The context of crisis: new stage for CSOs
Context of crisis
Double challenge as a sector
Confront the Respond to new
impact of the crisis social needs
An increase A trend Changes in the Uncertainty
in social towards the priorities of all over the future
needs
d reduction of parties
ti of volunteering
f l t i
public and
private income
5

6. The new stage for CSOs
An increase There has been an increase in the number of people at risk of
in
i social
i l social exclusion who require the services of third sector
needs organizations.
Attrendd
On one side there is the administration mentioning “cutbacks”.
towards the
At the same time, authorities are promoting specific policies for
reduction of
the third sector public budgeting. On the other side there is a
public and
reduction i private and business donations applying a principle
d ti in i t db i d ti l i i i l
private
of prudence.
income
There
The e is a necessit for efficient management of
necessity fo
Changes in resources. However, it is important not to be influenced by
the priorities the priorities of financers when it comes to action:
of all parties g
guarantee the coherency of your mission as an organization.
y y g
Uncertainty While some people maintain that the situation of crisis will
over the increase solidarity and cooperation, others highlight the
future of
f f possibility that personal difficulties will cause people to have
volunteering less time to dedicate to voluntary activity.
6

7. 2. The ways in which CSOs are vulnerable
y
Financial
dependency and
weakness
The lack of a
collective discourse The difficulties of
as a sector long-term planning
Typical factors
that affect the
vulnerability of
third sector
organizations
A model of labour The diversification
relations in progress of activities
The process of
consolidating
collaborative
relationships
l ti hi
7

8. Typical factors that affect CSOs
yp
Financial Financial weakness has been due to a
dependency lack of contingency plans and reserve
and weakness funds to respond to crisis situations.
The difficulties
Th diffi lti The
Th present context requires a reflection
t t t i fl ti
of long-term on strategies for the future, beyond the
planning day-to-day running of the organization.
The
Th It is important to manage the diversification
i i t tt th di ifi ti
diversification of activities: it will be difficult to guarantee
of activities continuity in all areas of work.
8

9. Typical factors that affect CSOs
yp
The process of There are common objectives that can be
consolidating accomplished better if efforts and resources
collaborative are pooled: collective interests must take
relationships precedent over individual benefits
benefits.
A model of
d l f This fact i ifi
Thi f t signifies a point of vulnerability in
i t f l bilit i
labour view of the crisis insofar as the labour
relations in framework will directly affect the economic
progress conditions of many organizations.
The lack f
Th l k of a The context of crisis highlights the need to
collective elaborate a collective discourse as a sector
discourse as a that helps to develop and transmit a shared
sector strategy.
t t
9

10. 3. The impact of the crisis p
p per type of CSOs
yp
Impact of the crisis
Based on
The activities Those being
The size of the
realized by the helped by the
organization
organization organization
10

11. Based on the size of the organizations
g
Small organizations have to readjust their
Small organizational model to attend to the projected
increase in users needing their services with the
same number of people.
Medium-sized organizations are at a higher risk of
Medium
M di adverse impacts since they are still in process of
growing and often lack firm structures.
Large organizations may have problems facing
Large investments done in the recent years. They have
y y
more ability in replacing staff and voluntary
people.
11

12. Based on the activities realized
Direct Due to the increase in disadvantaged people, lines
support of financial support –both public and private- will
be channelled primarily towards activities giving
direct support to the most vulnerable g
pp groups
p
The effect of this situation on those organizations that focus their
activities on prevention, training, education, citizen participation
or research, among other areas is still uncertain
Training
Citizen Prevention
Education Research
participation
12

13. Based on those being helped
g p
Highly vulnerable groups
Organizations that work in the field of attending highly
vulnerable groups are the ones who will suffer a
remarkable increase within the people needing their help.
This increase will not always b accompanied b more
Thi i ill t l be i d by
resources and, therefore, they will have to be able to
manage their services more efficiently.
This might be the case for organizations that work with
immigrants or homeless p p , amongst others.
g people, g
13

14. 4. Actions to undertake to confront the crisis
Actions
Two kinds of activities
Improve the Raise the profile of
efficiency of CSOs the third sector
-Prioritizing and Specializing -Transparency
-Reinforcing networking -Emphasizing communication
-Competitiveness -Promoting greater k
P ti t knowledge on TS
l d
-Revising management models -Improving political advocacy
-Quality and continuous evaluation -Developing a collective discourse
-Boosting innovation -Promoting social mobilization
g
-Reinforcing role of agent for social
change
14

15. Actions to improve the efficiency of CSOs
p y
This crisis situation highlights the need to prioritize and
Prioritizing and concentrate efforts on those lines of work that are most in
t t ff t th li f k th t ti
specializing line with the mission and values of the organization.
Reinforcing In times of crisis the need to look for common strategies
networking that
th t enable improvements in efficiency and impact is even
bl i t i ffi i di ti
more evident
The challenges that the sector must face make necessary
Competitiveness to think of new ways to facilitate an advance in
competitiveness
Revising models Incorporate management systems that facilitate efficiency
of management while maintaining the specific values of the third sector.
Quality and It is important to put effort into the continuous evaluation
evaluation of the programs, projects and activities carried out.
programs out
The need to “do more with less” obliges organizations to be
Boosting more creative and search for innovative ways of meeting
innovation new challenges
challenges.
15

16. Actions to improve the p
p profile of the TS
Accountability becomes essential in maintaining and
Transparency strengthening society’s trust as well as the legitimacy of the
g g y g y
non profit sector
Emphasizing Making efforts to explain what differential value the not-for-
p
profit sector
communication
Promoting greater It is important to be able to analyze and measure the real
knowledge on TS impact that the economic crisis has had on not-for-profit
organizations
Improving The value of the third sector and the contribution it makes to
political advocacy society need to be highlighted now more than ever
Developing a
D l i It is important to create a collective d
ll discourse as a sector that
h
collective discourse enables the development of a global strategy to face the crisis
People are the main capital of third sector organizations and
Promoting social strategies must b d
i be developed so they link society with the
l d h li k i ih h
mobilization action being carried out and get people involved
Agent for We ought to make the most of the situation to envisage the
social change contribution of the sector to society and lead a response
16

17. 5. The other side of the crisis
Third Sector as an agent for
social change
i l h
The crisis entails a period of change, an
opportunity and th responsibility t
t it d the ibilit to
propose a new structural model and to
move towards a more just world.
Transition to
The contribution The coherence of Citizen participation
and the added the mission and and social
value of the third the values mobilization
sector
Joint responsibility Determine the position
Collaborative for matters of of the sector
relationships collective interest
17

18. The Crisis and the Third Sector:
es
or.org.e
An Opportunity for Social
cersecto
Transformation
Pau Vidal and Laia Grabulosa
au da a d a a G abu osa
ww.terc
8th July 2010
ISTR – 9th International Conference
ww