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Commissioned by
Clear vision: Clear thinking
- future development of the voluntary sector in the East of England
1
Foreword
The community and voluntary sector faces challenging times. In political terms, there are pressures for
the sector to deliver a greater share of public services, while in economic terms, contracts and tenders
are increasingly replacing grants. Meanwhile, demographic factors are forcing the voluntary and
community sector to reshape itself. By 2020 our region will have grown by another million people, and
our population will continue to get older, frailer, more diverse, and more polarised as the health and
wealth gaps grow. Already one million people in the region live in poverty, and the sector will have to
respond to these changes in terms of our beneficiaries, our mission, developing our workforce, and
organisational and partnership development.
The Clear vision: Clear thinking project is the first stage in the development of a ten year strategy to
help the sector adapt to these changes. A joint voluntary and community sector / public sector
initiative, the report provides us with a starting point and a menu of possible options.
The project, the first of its kind in the region, gathered information on the trends and issues facing the
sector which, together with suggested options for the sector's development, were incorporated into a
three month public consultation. The conclusions from that consultation were then turned into a
series of recommendations specifically aimed at frontline VCOs, VCS infrastructure organisations, and
funders and policy makers, and forms the core of this report.
We urge all those involved in, and with, the voluntary and community sector in the region to consider
the relevance of these recommendations to their own future plans over the next decade. Meanwhile
work will be continuing with the sector to identify, from the menu of possible options, the key drivers
for change. This will lead to the development of effective, sustainable support that enables the VCS to
confront the challenges it faces and to make the most of available opportunities over the next
five years.
Mary Sanders, chair COVER
Andrew Cogan, ceo COVER
2
COVER is a network of networks and partnerships that represents and coordinates a wide range of
community and voluntary groups in the six counties and unitary authorities of the Eastern Region.
These counties are: Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk; and the
unitary authorities of Luton, Peterborough, Southend-on-Sea and Thurrock.
The work was commissioned by the East of England Development Agency, EEDA, and was led and
developed by the Community & Voluntary Forum: Eastern Region, COVER.
The contents of this document are based on extensive desk research, analysis, discussions, scenario
planning workshops and consultation with stakeholders in the region between March and
December 2005.
COVER - Background information
The final draft was written by Jean Barclay and Margaret Bolton, under the guidance of COVER.
We would like to thank all those who contributed to the creation of this report, in particular Tim Allard,
Andy Cogan, Jamie Conway and Mark Freeman, under the direction of Sally Dyson, and the many
members of the voluntary and community sector in the East who contributed their thoughts and
comments.
The report was commissioned by the East of England Development Agency from the Community &
Voluntary Forum: Eastern Region.
For additional copies of the report, please contact COVER at:
Eagle Stile Tel: 01799 532 880
Rectory Farm Barns
Walden Road Fax: 01799 532899
Little Chesterford
CB10 1UD Email: office@cover-east.org
First published in March 2006
While all reasonable care has been taken in preparing this report, the publishers cannot assume
responsibility for any errors or omissions.
This report was made possible by support from:
Acknowledgements
3
This document is in two parts:
Part 1 sets the context, and is designed to help voluntary and community sector, (VCS), organisations
and their stakeholders plan more strategically for the future.
Part 2 sets out an agenda for the future health and development of the VCS in the East of England. At
the end of each section there are specific recommendations for policy makers/funders/service
commissioners, and for voluntary and community organisations, including specific recommendations
for VCS infrastructure organisations.
Contents
Executive summary of recommendations.................................................................. 4
Part 1 Context
Section 1 About the East of England ........................................................................................ 12
Section 2 About the Voluntary and Community Sector (VCS) ................................................ 18
Section 3 Support for the Sector - VCS infrastructure ............................................................ 26
Section 4 Environmental Analysis ............................................................................................ 31
Section 5 Surviving the Future - key attributes for VCO survival............................................ 37
Part 2 An agenda for the future development of the VCS in the East of England
Section 6 Governance ................................................................................................................ 40
Section 7 Financing the VCS ...................................................................................................... 43
Section 8 Workforce Development .......................................................................................... 48
Section 9 Volunteering .............................................................................................................. 56
Section 10 Information and Communications Technology (ICT) .............................................. 64
Section 11 Performance Improvement ...................................................................................... 70
Appendices
Appendix I Glossary...................................................................................................................... 74
Appendix II Questions for voluntary and community organisations to consider .................... 75
Appendix III Key references............................................................................................................ 76
If you know of anyone who needs this document in another format or language, please contact COVER.
Clear vision: Clear thinking
- future development of the voluntary sector in the East of England
4
COVER’s Clear vision: Clear thinking report, commissioned by the East of England Development
Agency, EEDA, in 2005, sets out the importance of the voluntary and community sector, VCS, to the East
of England region in the wider regional context, and highlights key challenges for the VCS in the future.
- part 1 of the main report
In Part 2, six key themes are explored in detail: governance; financing; workforce development;
volunteering; ICT and performance improvement. These are the six themes identified in the Home
Office ChangeUp programme as being crucial for building capacity in voluntary and community
organisations, VCOs. In each section of Part 2, the current situation and issues for the future are
summarised, providing the background to the recommendations under each theme.
Recommendations are aimed at frontline VCOs, infrastructure organisations and funders and policy
makers - these together form COVER’s agenda for the future development of the VCS in the region. Key
regional bodies, both statutory and voluntary, need to recognise the importance of their leadership
roles in supporting these developments.
The report’s recommendations, relating to each of the six themes, are set out in this summary for each
key audience. Some general recommendations are also made which are relevant across all themes. It
is clear from the analysis in the main report that training and development of staff and volunteers,
including trustees, is an overriding issue to be addressed, but issues around short term funding and
full cost recovery create barriers to progress. Extensive consultation was carried out in developing this
agenda and we are confident that there is a strong consensus for this way forward.
RECOMMENDATIONS FOR FRONTLINE VCOs:
Note that some of these will only apply to organisations with paid staff
Governance
• Ensure your trustees/board members have access to the increasingly available information on good
practice in governance
• Identify the key training needs of trustees or directors, and identify practical and affordable ways
of addressing these, eg invite an expert speaker on governance to a board meeting, run a training
course for your trustees, etc
• Keep your governance arrangements under review as the organisation changes its activities, eg if
developing a new trading venture.
Financing
• Be aware of the full range of funding options and sources available in your area and ensure that you
are linked into networks which can keep up to date on funding locally, regionally, and at the
national level, and through the Finance Hub
• Recognise different skills are required for generating income in different ways, and consider how to
develop these skills, eg by seeking training from the local Council for Voluntary Service, CVS
• Develop an understanding and analysis of the full costs of the services or activities so that it can be
built into your fundraising plans / funding applications / pricing of services - this will help you
operate more sustainably.
Executive Summary of Recommendations
5
Executive Summary
Workforce Development
• Consider how to develop the generic skills of your workforce, in particular the benefits of
developing better management, leadership and ICT skills
• When recruiting staff recognise particular skills which those outside the sector may bring to your
organisation
• Consider how to adopt good practice in employment and recruitment in your organisation
• Encourage continuing professional development and consider developing career pathways so that
new staff can plan their futures in the sector (although it is recognised that this is likely to be
difficult for organisations not employing large numbers of staff)
• Consider your role in the Skills for Life agenda - it is a governmental and Learning & Skills Council
priority. VCOs may be in a unique position to identify and work with disadvantaged or hard to
reach groups who wish to improve their skills.
Volunteering
• If your organisation involves volunteers, consider how you recruit and make your organisation more
attractive to a wide range of volunteers, including potential board members, and consider how
barriers to volunteering can be overcome
• If your organisation involves volunteers in working towards your mission, ensure you offer high
quality volunteering experiences and opportunities, based on nationally recognised good practice
• Explore ways in which your organisation can maximise the income it receives to pay for support for
volunteers
• Ensure that volunteering remains independent, while taking advantage of the government’s
interest in encouraging citizenship and volunteering, eg new schemes and incentives to
encourage young people to volunteer
• Consider the benefits there might be to your organisation / to your volunteers in developing ways
to accredit the volunteering experience you provide.
ICT
• Develop a strategy for how you will use ICT in your organisation. Recognise that ICT strategies are
likely to need to be integral to all aspects of your activities - ICT should no longer be thought of as
an add on
• Ensure you plan and budget for adequate access to ICT services and support eg broadband access,
technical support, virus protection, back ups etc, particularly for any activities which are highly ICT
dependent
• Ensure your budgeting allows for appropriate renewing/upgrading of your ICT to meet your
organisation’s needs
• Consider how improving the presence of your organisation on the internet will help you in
achieving your organisation’s goals
• Aim to recruit ICT literate employees - or ensure you can offer adequate ICT training for those who
do not already have strong ICT skills
• Explore how additional use of ICT could benefit your organisation and its beneficiaries, eg use of a
database to manage key information, use of the internet
• Consider whether it is relevant for your organisation to help people cross the digital divide in the
course of its work, including help for people with disabilities around the use of ICT
• Consider the benefits and feasibility of involving more ICT skilled people in your organisation, eg
recruiting young people with ICT skills as trustees or volunteers.
6
Executive Summary
Performance Improvement
• Ensure you are aware of the different tools and techniques that your organisation might use to
manage and monitor its performance, eg outcomes assessment, strategic planning etc
• Consider whether your organisation needs to develop work in this area
• Periodically ask key stakeholders, including service users, what they think of your VCO’s performance
• Include in funding bids an element of funding for the evaluation of funded programmes
• Nominate a board member, or sub group of the board, to consider organisational performance and
how it might be improved
• Keep your arrangements for managing and monitoring performance under review and ensure they
are adapted appropriately as things change
RECOMMENDATIONS FOR VCS INFRASTRUCTURE ORGANISATIONS:
Governance
• Research the advice, information and support available to VCOs in the region on governance and
how provision might best be developed in the future
• Specific attention should be paid to recruitment, and an initiative developed to helpVCOs recruit and
retain trustees with the right skills and experience, and from diverse communities
• Specific attention should also be given to the development of trustee networks offering peer support
• Promote information on good practice in governance, eg The Code of Governance, in a way that
meets the needs of different types and sizes of VCOs
• Offer services to organisations in their start-up phase. Governance support in the early stages can
make a big difference to the success or failure of an organisation
• Ensure training in aspects of governance is available throughout the region for trustees, staff and
other stakeholders
Financing
• Build on existing material to develop more comprehensive information about levels and types of
funding available, from loan finance to grants, support services and training which can help VCOs
secure and manage funding. Note that small community groups will have different information
and support needs from bigger VCOs
• Connect to the Finance National Hub, and coordinate best practice information and resources in
the region/local area around funding and investment policy, advice and guidance
• Information about tender opportunities, advice and guidance, ideally in a standardised format for
all local authority contracts, to be made available on a centralised VCS website
• Develop training to prepare organisations for tendering and contracting
• Provide practical support and leadership to Local Strategic Partnerships, including joint work on
procurement issues, as well as promoting partnership working across economic and community
development and procurement departments of local authorities
• Compile a digest of joint working and partnership toolkits. Partnership development was a key
recommendation of the EEDA report Beyond Grants; and joint working, ie sharing facilities and
resources, can reduce costs
• Secure funding to re-establish the Business in the Community Partners in Leadership with
Community Enterprise programme, since appropriate pro-bono assistance can help VCOs
develop income generating ventures
7
Executive Summary
• Gather and promote case studies of successful regional social enterprises to highlight the benefits
of social enterprise activity to the VCS
• Raise awareness among VCS stakeholders of the scope, potential and possible limitations of social
enterprise activity in the VCS
• Sign-up to implementing the new National Occupational Standards in social enterprise, and offer
a programme of accredited training in social enterprise development
• Ensure support for VCOs involved in social enterprise is offered in the context of other VCS support,
eg integrate this support with other CVS services.
Workforce Development
• Promote the sector as a place to work, including generating more opportunities for relevant work
experience in the VCS and highlighting potential career pathways
• Ensure workforce development needs of the VCS are given consideration in the development of
Local Area Agreements, and Community Plans
• Promote and facilitate the development of career pathways within the sector, so that existing staff
and new entrants can plan their futures
• Promote the recognition of key transferable skills that those from outside the VCS can bring to it
• Develop and disseminate good practice in employment and recruitment to the sector
• Ensure the sector has access to affordable, appropriate and timely employment / human resources
management advice
• Develop systematic ways of spreading good practice in all aspects of workforce development,
between county, regional, and national levels
• Promote the use of appropriate quality frameworks/systems in relation to all aspects of VCS
workforce development, taking into account the varying needs within the VCS
• Ensure a wide range of affordable training is on offer to meet the needs of VCOs, including
community based organisations and those with no paid staff (see also Section 9 - Volunteering)
• Identify and implement ways of increasing the provision and take-up by VCOs of generic training in
management, leadership and ICT skills
• Compile listings of appropriate accredited training and train the trainer courses and promote VCS
take-up of these
• Explore models of accreditation for VCS training which do not result in a loss of the uniquely
successful nature of existing training
• Explore the role of the sector in the formation of the National Occupational Standards. These are being
promoted by the new Workforce Development Hub and by the Sector Skills Development Agency
• Support the development of training consortia where this could add value in meeting either the
VCS’s own workforce development needs or VCS service delivery to other individuals and
organisations
• Develop and promote more equal partnership working in training, and ensure that the role of the
VCS is recognised and rewarded. This is especially important when working with traditional
training providers
• Develop and promote models of full cost recovery in relation to training. This includes work to
calculate the cost of supporting disadvantaged clients into training
• Explore and promote new modes of delivery, eg how to use new technology to ensure training can
be more widely accessible
• Develop and promote mechanisms to enable more VCS organisations to sell training to generate an
income, while furthering their mission
8
Executive Summary
• Develop communication channels within the VCS and with other bodies to build on the VCS’s ability to
reach large numbers of individuals who other organisations classify as hard to reach. This could be
promoted carefully and charged for where necessary, as a means of supporting government
objectives - but it is essential that this is carried out without losing the trust that the sector has with
its clients, and without becoming the mouthpiece of government
• Promote and offer training to ensure that staff in the VCS have literacy, language and numeracy skills to
carry out their roles, and access to advice and training in the Skills for Life area where appropriate.
Volunteering
• Ensure coverage in the region is addressed so that a sustainable volunteer brokering service is available
in all local areas
• Promote the benefits of volunteering and promote volunteering opportunities, as well as related
schemes and incentives available
• Identify and promote good practice in involving volunteers, overcoming barriers to involvement and
case studies demonstrating innovative ways of involving volunteers
• Promote appropriate ways of accrediting the volunteering experience and the benefits this might bring.
ICT
• Ensure VCOs have access to training in how to use ICT to benefit their work - this should address the
needs of a wide range of organisations, including those working with people with disabilities and
those without paid staff
• Ensure VCOs have access to appropriate training in a wide range of specific ICT skills at affordable cost
• Promote ways the VCS can help people cross the digital divide and the benefits of this, eg promote the
range of information available on the internet
• Ensure VCOs have access to information about sources of funding for ICT related expenditure, eg
training, database development, hardware
• Consider offering a low cost, easily accessible ICT support service to the VCS as a social enterprise
• Promote the benefits of ICT to VCOs by highlighting real examples of how it has been used effectively,
eg video/voice conferencing to save time travelling to meetings
• Promote good practice in making websites accessible/appropriate for particular sections of the
community, eg people with disabilities
• Ensure that good practice and learning from the ICT National Hub is disseminated appropriately, in
particular encouraging better use of existing ICT.
Performance Improvement
• Examine the advice, information and support available to VCOs in the region about performance
improvement and how provision might best be developed in the future
• Develop peer to peer support schemes
• Promote and develop pro-bono support schemes
• Promote information on performance improvement, eg that developed by the Performance
Improvement Hub, in a way which meets the needs of the wide range, types and sizes of VCOs
• Offer diagnosis services and support through the performance improvement process - this is regarded
as key to helping organisations work through the options and successfully implement improvement
programmes
• Ensure training in different performance improvement tools and approaches is available throughout
the region for trustees, staff and other stakeholders.
9
Executive Summary
RECOMMENDATIONS FOR FUNDERS AND POLICY MAKERS:
Governance
• Recognise the need for funding for VCOs to support governance development, eg funding for
trustee training
• Follow good practice in funding governance development (the Governance Hub is planning to
define and promote this)
• Fund a review of information, advice and support on governance for the VCS in the region, which
should include an assessment of gaps in provision.
• Provide funding for provision which fills the service gaps identified above.
Financing
• Join the Finance National Hub to keep up to date with developments in good practice in financing
and financial management in the VCS
• Sign up to the Compact Funding and Procurement code and implement its recommendations
in full
• Raise awareness and provide a training programme for local authority procurement officers on the
added value, benefits and obstacles faced by VCS and Social Enterprise organisations in accessing
and bidding for contracts
• Accept full cost recovery in your financing of VCS services, including those provided by VCS
support agencies
• Consider funding co-located sources of support to the VCS and social enterprises eg such as the
proposed Cambridge Community Innovation Centre or other models of network or cluster
development in the VCS.
Workforce Development
• Statutory and charitable funders, including government departments and purchasers of the
activities of VCOs, should invest in the skills and learning activities and good employment
practice of VCOs - particularly to address specific skills gaps identified in the region, eg generic
management and leadership skills. This will enable VCOs to continuously improve their
performance and deliver good value for money
• When funding staff posts or volunteering opportunities, funders should ensure that money for
training is built into the cost and that the funding covers this cost
• Ensure that funded organisations have appropriate HR and workforce development policies and
procedures in place to support staff and volunteers, and that they are meeting minimum
standards
• Ensure that organisations are taking account of the full cost of training and support, and that all
this is covered in the amount awarded
• Work with funded VCS organisations to draw on their expertise to support the development of
good practice around workforce development.
Volunteering
• Recognise that involving volunteers is not free - support is needed for volunteer activity and there
are associated costs
• Provide secure and sustainable funding for volunteering infrastructure, eg volunteer centres, at a
local level
10
Executive Summary
• Recognise the need for organisations involving volunteers to invest in promoting the benefits of,
and opportunities for, volunteering
• Recognise the need for investment in enabling organisations to exploit new technological
platforms for recruiting volunteers
• Recognise the importance of informal volunteering as well as formal volunteering - and recognise
where these need to be handled differently
• When involving volunteers in the work of public sector organisations, be aware of good practice in
volunteering - but recognise that the motivations and limitations of volunteers in such cases may
differ from those of volunteers involved with VCOs
ICT
• Encourage better use of ICT, eg by promoting examples of the benefits of its use
• Offer funding for equipment, software renewals, upgrades and support services - ensure this covers
the full cost of ICT use
• Offer funding for ICT training in the VCS, including the strategic use and planning of ICT
• Offer funding for ICT training and development in the VCS which meet diverse needs of groups who
are experiencing digital exclusion, eg rural communities, elderly people, disabled people.
Performance improvement
• Fund a review of information, advice and support on performance improvement for the VCS
• Recognise the need for funding to VCOs to enable them to improve their performance, eg by
developing improved information systems, implement outcomes monitoring systems, etc
• Allow passporting between different quality standards and systems. VCOs are often required to
implement a new standard for a particular funding stream regardless of the fact that they have
already achieved a standard with most of the same elements
• Fund a programme of work examining how VCOs, in particular sub sectors, can demonstrate the
benefits of the VCS and the added value of their work (see discussion of added value in Part 1).
CROSS CUTTING RECOMMENDATIONS FOR VCS INFRASTRUCTURE ORGANISATIONS,
FUNDERS AND POLICY MAKERS:
• The issue of coverage throughout the region needs to be addressed. Current provision is patchy.
Despite the large number of different organisations involved in the provision of support there are
concerns that this is not sustainable and resources could be applied more effectively
• In taking forward this agenda for support for VCOs the differing requirements of different types of
organisations needs to be taken into account, including those of community groups, rural
organisations, BME and faith based communities
• There is an ongoing challenge to support the sector by finding ways to demonstrate clearly the
value added by the VCS in the region
• Recognise the importance of physical infrastructure in community development and VCO activities,
and support the need for capital and revenue investment in vital resources such as village halls
in rural areas.
11
Part 1
Context
Section 1 About the East of England .......................................................................................... 12
Section 2 About the Voluntary and Community Sector (VCS) .................................................. 18
Section 3 Support for the Sector - VCS infrastructure .............................................................. 26
Section 4 Environmental Analysis .............................................................................................. 31
Section 5 Surviving the Future - key attributes for VCO survival.............................................. 37
12
1.1 Population statistics1
The East of England covers an area of 19,110 square kilometres and encompasses the counties
of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk, and the unitary
authorities of Peterborough, Luton, Southend on Sea and Thurrock.
Most recent population figures (for 2003) give the population as 5.46 million, which represents
9.2% of the population of the United Kingdom of 59.55 million, and an average population
density in the region of 286 people per square kilometre. Population density was highest in
Luton Unitary Authority, with 4,271 people per sq. km, one of the highest densities outside of
London. The local authority districts of Breckland, and King’s Lynn and West Norfolk had the
lowest population densities with 95 and 97 people per sq. km respectively.
The population in the East of England increased by 12.5% between 1981 and 2003. The largest
population change was in East Cambridgeshire where there was an increase of 44.5%. Half the
population live in rural areas of the region, which represents 45% of the total region.
The region has no major conurbations, but encompasses a variety of new and historic towns
and cities, together with extensive rural areas. It has an attractive and high-quality
environment, including areas of unspoilt countryside and coastline, attractive villages, market
towns, and distinctive historic cities such as Cambridge and Norwich.
Section 1. About the East of England
Table 1: Population, by county, within the East of England
COUNTY OR UNITARY POPULATION AREA DENSITY
AUTHORITY AREA (thousands) (sq km) (people per sq km)
Bedfordshire 389 1,192 326
Cambridgeshire 571 3,046 187
Essex 1,324 3,465 382
Hertfordshire 1,041 1,643 634
Norfolk 811 5,371 151
Suffolk 678 3,801 178
Luton UA 185 43 4,302
Peterborough UA 159 343 464
Southend on Sea UA 160 42 3,810
Thurrock UA 145 163 890
Total for region 5,463 19,109 286
1. All figures in this section taken from Office for National Statistics 2005. You can find links
to figures for the East of England via www.eastofenglandobservatory.org.uk
13
About the East of England
Table 2: Percentage of population who are elderly, BME
or have a disability or a limiting long term illness
AREA % OF PENSION % OF NON-WHITE % WITH LIMITING
AGE OR OVER ETHNIC GROUPS LONG TERM ILLNESS
Bedfordshire 16.7 6.7 14.3
Cambridgeshire 17.3 4.1 14.6
Essex 19.7 2.9 16.4
Hertfordshire 17.6 6.3 14.1
Norfolk 23.3 1.5 19.4
Suffolk 21.4 2.8 17.1
Luton UA 14.3 28.1 15.3
Peterborough UA 16.3 10.3 16.8
Southend on Sea UA 21.4 4.2 19.1
Thurrock UA 15.3 4.7 16.1
Average for the region 19.2 4.9 16.2
As Table 2 shows, there is considerable variation in key characteristics of the population, both
between and within the local authority areas:
The percentage of people of pensionable age or older averaged 19.2% overall (compared with
18.5% for the UK as a whole), ranging from 14.2% in Cambridge, to 29.6% in Tendring in Essex.
The proportion of the population who were from non-white ethnic groups was 4.9%, but this
varied from just 0.8% in North Norfolk to 28.1% in Luton. A total of 16.2% of people had a
limiting long term illness compared with 18.5% for the UK as a whole, but within the East of
England region this varied from 12.4% in East Hertfordshire to 24% in Tendring.
1.2 Economic characteristics of the region
The lack of major conurbations, like those of Manchester, Birmingham or London, and of other
post-industrial areas experiencing intense deprivation and poverty, means that the region is
assumed to be affluent, and averaged data reinforces this view.
However, the regional economy has undergone significant structural change in recent years,
including the loss of an estimated 60,000 jobs in agriculture, the closure of important
industries, including car making in Luton, and the decline of seaside towns like Great Yarmouth,
which is in the top ten of the most deprived places in Britain. Parts of the region suffer from the
London effect, which can have damaging consequences, including a lack of social cohesion and
insufficient affordable housing. Other parts of the region, particularly Norfolk and Suffolk, face
problems associated with remote, peripheral areas, ie few employment opportunities, low
wages and limited access to services. Overall, however, as Table 3 shows, unemployment at
4.2% in 2003 was lower than the UK average of 5.1%.
14
About the East of England
Table 3: Key statistics for the East of England2
EAST OF UNITED
ENGLAND KINGDOM
Population, 20031 (thousands) 5,463 59,554
Percentage aged under 16 19.7 19.7
Percentage pension age and over 19.2 18.5
Standardised mortality ratio (UK=100), 2002 92 100
Infant mortality rate,2 2002 4.4 5.3
Percentage of pupils achieving 5 or more grades A*-C
at GCSE level or equivalent, 2001/02
55.3 52.5
Economic activity rate - spring 2003 (percentages) 81.9 78.8
Employment rate, spring 2003 (percentages) 78.5 74.7
Unemployment rate, spring 2003 (percentages) 4.2 5.1
Average gross weekly earnings: males in full-time employment,
April 2002 (£)
506.3 511.3
Average gross weekly earnings: females in full-time employment,
April 2002 (£)
375.1 382.1
Gross value added, 2001 (£ million) 85,775 874,227
Gross value added per head index, 2002 (UK=100) 110.1 100.0
Total business sites, 2002 (thousands) 248.0 2,538.1
Average dwelling price, 2001 (£) 160,495 145,320
Motor cars currently licensed, 2002 (thousands) 2,694 25,782
Recorded crime rate, 2002/03 (notifiable offences per 100,000 population) 9,084 11,327
Average gross weekly household income, 1999-2002 (£) 538 510
Average weekly household expenditure, 1999-2002 (£) 400.5 379.7
Households in receipt of Income Support/Working
Families Tax Credit, 2001/02 (percentages)
12 17
2. Notes to Table 3
1. Population figures for 2002 are mid- year population estimates and include
provisional results from the Manchester matching exercise. Pension age is men aged
65 and over and women aged 60 and over.
2. Deaths of infants under one year of age per 1,000 live births.
1.3 Deprivation
As the figures in table 3 show, overall the East of England is a relatively affluent region
compared with the rest of the UK. While this is clearly a good thing for the region as a whole, it
means that the East of England has access to fewer area based funding sources than other
regions. However, within the East region, there are significant localised areas of deprivation and
a large number of people in poverty.
15
About the East of England
3. www.eastofenglandobservatory.org.uk The main OSEP partners are the East of England
Regional Assembly, the East of England Development Agency, the Government Office for
the East of England, the Eastern Region Public Health Observatory and COVER,
representing the Community and Voluntary Sector Eastern Region.
4. Sustainable Communities: People, Places and Prosperity: A Five Year Plan from the ODPM
- January 2005
According to the Observatories Social Exclusion Project (OSEP)3, it is estimated that 22% of
children and 25% of pensioners live in poverty. Despite relatively high employment rates, in
2001 7.5% of working age people were living in workless households. OSEP also points out that
there are high numbers of people with poor skills, eg around 700,000 people have poor literacy
and numeracy skills, and in certain districts the percentage of the working age population with
no qualifications is over 20%.
OSEP highlights a wide variation in deprivation levels across the region: “Ninety two wards in
the region fall within the 20 per cent most deprived wards in England. Among these, Regent and
Nelson wards in Great Yarmouth (ranking 19th and 37th respectively), Central in Peterborough
(99th), Lynn North in King’s Lynn and West Norfolk (139th) and Golf Green in Tendring (161st)
are the most deprived. At district level, Great Yarmouth, Peterborough, Tendring, Waveney,
Norwich, Luton, King’s Lynn and West Norfolk, Thurrock, Basildon and Bedford have the highest
local concentration scores. Great Yarmouth is ranked as the fifth most deprived district in the
country on this measure”. Identification and understanding of such areas is important as
regional development agencies in each region are encouraged to focus their investment on the
most deprived wards.
1.4 Looking ahead - the East of England 2020
According to Office of National Statistics estimates, the regional population is expected to grow
to 5.95 million by 2011, and to 6.14 million by 2021. The region is currently facing a huge
challenge in terms of growth. Within the government’s Sustainable Communities Plan4
provision has been made for a further 23,900 homes to be provided by 2016, which are in
addition to current plans, taking the total for the region to 478,000 new homes.
Three of the four National Growth Areas identified in the Plan are within, or encompass, parts
of the East of England. They are: the Thames Gateway (South Essex); the Milton Keynes/ South
Midlands conurbation (encompassing parts of Bedfordshire); and the London-Stansted-
Cambridge-Peterborough corridor. In addition, the Plan envisages 420,000 more jobs in the
region, and those workers and their families will need affordable housing. This provides a
serious challenge for health and care services, and the economic and environmental
sustainability of the region - and as a consequence for VCOs within these areas. Engagement
with growth plans is made more challenging by the fact that these growth areas are defined in
a way which does not follow current administrative boundaries.
By 2020, the region’s population will not only have grown to over 6 million, it will also be getting
proportionately older. By that time 50 percent of the population will be over 50 years old (Essex
has already reached this proportion and is a foretaste of things to come). The population will
also be frailer - the percentage coping with a long term illness, disability or not enjoying good
health is likely to increase significantly as the population ages. The population is also more likely
16
About the East of England
to be single, with 40 percent of adults over 16 currently single, and this is a trend that is
growing. The population will also be more diverse. Currently less than 5% of the region’s
population come from black or minority ethnic groups, but that could grow to 9%. All these
demographic trends provide challenges for the VCS in terms of beneficiaries, activities,
structures and partnerships.
1.5 General regional infrastructure
Within the East of England there are several key statutory bodies with an interest in strategies
for the future which are particularly relevant to the VCS in the region:
East of England Regional Assembly, EERA
The East of England Regional Assembly exists to promote the social, economic and
environmental well being of the region through a partnership of elected representatives and
other regional stakeholders. The Integrated Regional Strategy, IRS, is an EERA led strategic
initiative, the vision for which is: ‘to improve the quality of life for everyone who lives or works
in the East of England’. The IRS tackles the critical issues facing the region, for example housing,
transport, health, skills and the economy. It combines a strong strategic vision for the region
with the necessary co-ordination framework for all other strategies, regional partnership bodies
and delivery mechanisms. EERA works closely with the Government Office for the East of
England and the East of England Development Agency5.
East of England Development Agency, EEDA
EEDA is a government-funded organisation sponsored by the Department of Trade and Industry,
DTI. It is one of nine regional development agencies, RDAs, created in 1999 to transform
England’s regions through sustainable economic development. EEDA’s key task is to improve the
region’s economic performance. EEDA places emphasis on its role as a regional leader and
catalyst, and aims to influence the £25 billion of public spending in the East of England. As the
EEDA website6 highlights: “With a budget of £90 million in 2004/5, EEDA’s challenge is to
deliver sustainable economic growth with a budget that equals only 0.1 per cent of the region’s
gross domestic product.” Its roles encompass:
• Principal advocate - for the development of the region
• Strategic navigator - influencing major strategic change
• Convenor - facilitating key regional partnerships
• Expert - consulting, advising and problem-solving
• Mental adventurer - innovator of changes that others could not undertake
• Commissioner - of investment programmes, joint ventures and sister organisations
• Delivery manager - of projects and programmes in pursuit of the roles above.
Government Office for the East of England, GO-East
The Government Office for the East of England brings together the varied regional activities of
a range of government departments. Regional government offices are part of the Office of the
Deputy Prime Minister, which covers regional and urban policy, local government, planning,
5. The leaflet "Working together for the East of England " Is available from www.eera.gov.uk
provides some information on how these three organisations work together
6. www.eeda.org.uk
17
About the East of England
housing and regeneration. Other departments with a stake in GO-East are:
• Department for Education and Skills, DfES
• Department for Work and Pensions, DWP
• Department of Trade and Industry, DTI
• Department for Transport, DfT
• Department for Environment, Food & Rural Affairs, DEFRA
• Home Office, HO
• Department for Culture, Media & Sport, DCMS
• Cabinet Office, CO
GO-East also works closely with the public health teams from the Department of Health. In
addition GO-East works with a range of regional and local bodies, including local authorities,
businesses, local education authorities, voluntary organisations, the health service, and local
people to help create sustainable communities and to maximise competitiveness and
prosperity in the region.
All the above bodies work closely together and relevant information about the region can be
found on the EEDA maintained website: www.eastofenglandobservatory.org.uk.
18
2.1 What is the voluntary and community sector?
The VCS is extremely diverse. It is made up of a range of organisations with different purposes,
ways of working, types of beneficiary and size. In developing this strategy we have adopted the
following definition:
The VCS is sometimes seen as comprising two overlapping segments:
• The voluntary sector, of which the key characteristics are that organisations are governed by
volunteers (trustees) and that there are no profit distributions to external shareholders.
• The community sector comprises voluntary organisations rooted in their local community.
Many rely solely on volunteer effort, without paid staff.
It should be noted that there is a lack of consensus on precise definitions and blurred
boundaries exist between these segments.
VCOs can have differing status and legal structures. Some are charitable and registered with
the Charity Commission. In order to be recognised as a charity an organisation needs to have
charitable objects, ie relief of poverty, advancement of education, promotion of religion or other
purposes of benefit to the community. And any private benefit deriving from their activities
must be purely incidental. Charities benefit from particular tax reliefs, including relief on
individual donations and rate relief. Generally speaking all but the smallest charities are
registered with, and report to, the Charity Commission.
Charitable status does not provide an organisation with a legal personality, ie enabling it to be
sued and to sue. Some charities are unincorporated associations, which means that all the
trustees and board members are personally liable. Many charities incorporate as companies
limited by guarantee. This means that their board members are company directors and trustees.
These organisations report to Companies House as well as the Charity Commission.
Non-charitable VCOs have three main incorporated structures to choose from: company limited
by guarantee; industrial and provident society; or community interest company (recently
introduced). The last of these is a legal form based on a membership or mutual structure and is
common among housing associations.
Within the East of England there are currently more than 14,000 charities registered with the
Charity Commissioner. Note that this will include some organisations who consider themselves
part of the community, rather than the voluntary, sector. It is estimated that there are, on
Section 2. About the Voluntary and Community Sector
VCOs are independent, not for private profit, mainly charitable groups, run by boards or committees
of volunteer trustees. They provide services to a wide range of communities of need, place and
interest. They are often value based organisations, for which the principle of how a service is provided
is as important as the kind of work undertaken.
19
About the Voluntary and Community Sector
average, at least three community groups for every one registered charity. This means that there
are likely to be just under 45,000 community organisations operating within the East of
England. As a measure of their significance, this represents one organisation for every 90
members of the population7.
It is sometimes assumed by those outside the VCS that all VCOs rely solely on volunteer effort
to deliver services. Voluntary organisations can be big businesses, employing hundreds of staff
and earning substantial amounts of income, which is used to further their purpose. While some
organisations, particularly in their early years, are largely reliant on volunteers to deliver their
activities. So, governance by volunteers aside, VCS organisations will involve volunteers to very
varying degrees, as Figure 1 shows:
Income sources
VCOs fund their activities by raising income from a wide variety of sources. Some provide
services under contract to local authorities or central government agencies. Some charge fees
to service users, while others generate income from public donations, subscriptions or grant aid.
Funding is often short term and designated for new projects only, which makes forward
planning and sustainability difficult.
2.2 Why is the VCS important
It is accepted by government that the VCS has an important role to play in: helping deliver
public services; contributing to building stronger, more cohesive communities and creating
employment and helping people back into work8.
As the Treasury says:
“The third sector can offer a superior alternative to both the private and public sectors in the
delivery of public services in certain circumstances. This is particularly true when government
failures exist, and neither the state nor the market can respond and deliver in an equitable or
efficient manner”9.
7. Involvement is by no means uniform and one individual may well be involved in many
different organisations, while another will not be involved at all.
8. Exploring the role of the third sector in public service delivery and reform: a discussion
paper (Treasury 2004)
9. See last note.
Figure 1: Types of volunteer involvement in the VCS
TRUSTEES
ONLY
VOLUNTEERS
ONLY
MAINLY
VOLUNTEERS
WITH SOME
PAID
WORKFORCE
MAINLY PAID
WORKFORCE
WITH SOME
VOLUNTEERS
PAID
WORKFORCE
ONLY
TRUSTEES
20
About the Voluntary and Community Sector
VCOs are identified as having a number of specific advantages. These may include:
• a strong focus on the needs of service users
• knowledge and expertise to meet complex personal needs and tackle difficult social issues
• an ability to be flexible and offer joined-up service delivery
• the capacity to build users’ trust
• the experience and independence to innovate.
VCOs work can also provide a range of wider benefits:
• involving local people to build community ownership
• building the skills and experience of volunteers - especially the young
• increasing trust within and across communities, thereby building social capital.
The importance of building social capital is echoed within EEDA’s Economic Strategy for the East
of England:
“[that the way to] build social capital [is] by strengthening links between people within and
between neighbourhoods, and promoting community leadership. This in turn allows people to
contribute to economic prosperity”
Taking the distribution of charities across the region we can observe that the more densely
populated urban districts of the region have significantly fewer registered charities than rural
districts.
VCOs also help to improve public services by getting involved in service design, commissioning
and evaluation.
Watford YMCA provides housing, training, recreation and other services, as well as being proactive in
community development. Recently an analysis was carried out using the 'Social Return on Investment'
model10. This aimed to identify and measure the added value created by the organisation as a result
of its housing intervention for people who are in need either because of social or behavioural
problems. Using this model, it was estimated that for every £1 invested in the YMCA hostel operation,
there was a return of £5.36 to the economy. This includes estimated social benefits such as savings to
the public purse in reduced mental health costs, dealing with addictions etc.
SNAPSHOT 1 - Watford YMCA and added value
Speaking Up runs a project in Cambridgeshire which provides a forum for representatives of people
with learning difficulties to engage with senior managers of services. The aim is to influence positive
changes to these services in line with the wishes and needs of the people with learning disabilities
who use the services.
SNAPSHOT 2 - Speaking Up, Cambridge
10. Watford YMCA Social Housing Project SROI Report September 2005
21
About the Voluntary and Community Sector
Chart 1: Number of registered charities by district within the East of England.
Babergh
Basildon, Billericay & Wickford
Bedford
Braintree
Breckland
Brentwood
Broadland
Broxbourne
Cambridge City
Castle Point
Chelmsford
Colchester
Dacorum
East Cambs
East Herts
Epping Forest
Fenland
Forest Heath
Great Yarmouth
Harlow
Hertsmere
Huntingdonshire
Ipswich
Kings Lynn & West Norfolk
Luton
Maldon
Mid Beds
Mid Suffolk
North Herts
North Norfolk
Norwich
Peterborough
Rochford
South Beds
South Cambs
Southend On Sea
South Norfolk
St Albans
St Edmundsbury
Stevenage
Suffolk Coastal
Tendring
Three Rivers
Thurrock
Uttlesford
Watford
Waveney
Welwyn Hatfield
600
500
400
300
200
100
0
83
379
375
316
234
425
254
183
117
189
109
171
459
256
540
63
208
435
454
321
490
447
323
126
233
484
228
469
319
362
94
581
258
151
172
351
155
323
149
363
454
286
211
586
364
339
205
371
22
About the Voluntary and Community Sector
This is starkly illustrated by the fact that Luton, an area of significant deprivation and the most
populous district in the region, has the least number of charities.
Analysis of registered charities in the Eastern region
Registered charities based in the Eastern region vary greatly in size, from a national wildlife charity
with a voluntary income of more than £53 million, grant aided by a further £9 million, through to
hundreds of tiny charities with less than £1,000 income per annum. Also within the region are 25
organisations that fall within the top 500 UK fundraising charities ranked by fundraising income. Of
these, 11 operate internationally and 7 operate across England and Wales
Nationally, 5% of organisations within the VCS control 95% of the total income. Based on this
proportion, 700 registered charities in the Eastern region would have 95% of the total income, with
the remaining 13,500 sharing the remaining 5%.
2.3 What do VCS organisations do?
The sector is diverse in terms of: the areas in which it works; its activities and its users. The main
fields of work are welfare, culture, health, education and learning, the environment,
regeneration and social inclusion, community development, sustainability and campaigning.
The predominant activity is the direct provision of services to users, although organisations are
also strong in self-help and the provision of information and advice, training, and advocacy.
Other organisations may benefit the public more generally through improving the
environment. An increasing number of VCOs are involved in community enterprises,
contributing additional value to the local economy.
VCOs provide a wide range of services and/or activities for a wide range of beneficiaries - some
examples are given opposite:
Some organisations, particularly community groups, provide support to all people within a
particular geographical area, while others focus on meeting the specific needs of particular
beneficiary groups such as:
Asylum seekers People in debt
Black and minority ethnic community People in poor housing
Carers People in residential care
Children People on low incomes
Disabled people People with HIV / AIDS
Families Refugees
Homeless people Substance users
Lesbian, gay and bisexual people Travellers
Lone parents Unemployed people
Offenders and ex offenders Victims of crime
Older people Young people
COVER research into beneficiary groups shows the proportion of organisations whose activities
cater for each group. As Chart 2 (see page 24) shows, the most frequently cited groups included
are older people, families, children, people with disabilities, BME communities and young people.
23
About the Voluntary and Community Sector
SUB-SECTOR EXAMPLE OF A VCO SUMMARY OF ACTIVITY
Health and care Suffolk Carers Information, support and
advocacy for family carers
Social economy/enterprise Humberstone Networkers Identifies, enables and supports
social firms and community
businesses working with
disadvantaged people
Sports Cambridgeshire & Developing a wide range of
Peterborough Active Sports sporting opportunities for
Partnership young people
Environmental sustainability British Trust for Conservation Activities include practical
Volunteers (East) conservation projects and
environmental education
Housing Hastoe Housing Support Trust Provides support to housing
associations, eg advice on
sustainable housing
Advice, information and Citizens Advice Eastern Region Support and networking for
guidance citizens advice bureaux in the
region
Faith activity East of England Faiths Council A contact point and facilitator
for faith groups in the region
in making input to regional
strategy and issues
Social inclusion Voluntary Sector Refugee An advisary organisation that
Network supports VCOs and groups
working with asylum seekers
and refugees
Community development Bedfordshire Rural In-depth grass-roots work
Communities Charity with communities and
influencing local and regional
policy through advocacy for
rural issues
Support to the VCS Dacorum Council for A range of information,
Voluntary Service (CVS) training and support services
for frontline VCOs
BME representation Minority Ethnic Network Promote racial equality and
Eastern Region (MENTER) advocate for the BME sector,
contribute to infrastrusture
building and community
regeneration
SNAPSHOT 3 - Examples of VCO activity in the Eastern region
24
About the Voluntary and Community Sector
Chart 2: Beneficiary groups for which VCS organisations in the East of England cater
50%
40%
30%
20%
10%
0%
Asylum
Seekers
Black&
M
inorityEthnic
CarersChildrenDisabilityFam
ilies
Hom
elessPeople
Lesbian
Gayand
BisexualPeople
Lone
Parents
Offenders/ex
Offenders
OlderPeople
People
earning
low
incom
es
People
in
debt
People
living
in
poorhousing
People
in
residentialcare
People
w
ith
H
IV
/AIDSRefugees
Substance
UsersTravellers
Unem
ployed
Victim
sofcrim
e
Young
People
19
45
36
47 47
49
25
19
27
20
50
36
18
24 23
17 18 19
16
34
17
43
2.4 Inclusiveness
Some parts of the VCS have traditionally been regarded as having particular difficulties in
accessing resources and other support, for example black and ethnic minority VCOs and those
based in rural areas.
Research carried out for MENTER, the network for black and minority ethnic voluntary
organisations within the region, has produced interesting results: “The overall picture of the sector
is one of many small organisations operating with very few staff, with a bias towards unpaid
voluntary staff”. Given this picture, it would be assumed that very few organisations were
registered either with the Charity Commission or Companies’ House. The evidence, however,
suggests that this is not the case. More than half of the organisations responding to the MENTER
research identified themselves as being registered with an appropriate body.This could be regarded
as a way for organisations to achieve status and legitimacy within their respective communities.
COVER research: Snapshot 2000
Research undertaken for MENTER11 gives us the following statistics:
Funding:
Funding is secured from a variety of sources, with a significant proportion, 61 percent, being from local
authorities. Donations and sponsorship, and self-funding follow at 38 percent each. This is a
significantly different funding profile from the wider VCS.
• 9 percent have an annual income of less than £1,000
• 16 percent have an annual income of less than £5,000
• 30 percent have an income between £5,000 and £50,000
• 24 percent have an income more than £50,000
SNAPSHOT 4 - The BME sector in the EAST of ENGLAND - funding and activities
11. Mapping the black and minority ethnic voluntary sector in the East of England, BMG for
MENTER (2004)
25
About the Voluntary and Community Sector
Chart 3 shows that the most common activity area is community development followed by
education and women’s activities.
In rural areas, which constitute a large proportion of this region, sustainability of VCOs is a
particular challenge due to limited infrastructure, including transport, and is often very
dependent on the sustainability of local community resources such as village halls and churches
or other places of worship which are put to a range of uses to benefit the community. Research
by Rural Action East12, who take a lead on highlighting rural community development issues in
the region, emphasised that
“village halls are a vital asset for the regeneration and revitalisation of rural communities. Their
availability and the range of use made of them by communities covers a wide range of activities.
Changes to legislation, increasing demand for both the range and intensity of hall use and
general deterioration through age and lack of previous investment, have created the need for a
major capital programme of work on the network of village halls. Without a major change to
the awarding criteria of funding programmes and a significant increase to the budgets
available, village halls in the eastern region will fail to meet the expectations of government and
their communities, and indeed will deteriorate and fail to maintain their existing level of use by
communities. “
Chart 3: Activity areas in which BME organisations in the region engage
80%
60%
40%
20%
0
Arts
Business/econom
ic
Capacitybuilding
Com
m
unitydevelopm
ent
Crim
inaljusticeDisabilityEducation
Elderly
Em
ploym
ent
Envirom
ental
Health
Gay/lesbian
M
en
M
entalhealth
Racialdiscrim
ination
Refugee
/asylum
seekersReligiousSocialcare
Sports/recreationTrainingW
om
en
Youth
Other
22
10
30
70
22
24
61
40
31
12
47
7
43
30
43
30
34
39
32
49
58
49
7
12. Funding for Village Halls in the East of England, Rural Action East (2003)
26
3.1 What is VCS infrastructure and why is it important?
For private sector businesses, there is a wide range of bodies, some publicly funded, which aim
to provide support. For example, the Small Business Service offers support to small enterprises
in setting up, advice on business planning, taxation and all aspects of running a business.
Similarly, there are a range of organisations and initiatives operating at the national, regional
and local level which exist to provide support to frontline VCOs. Within every region these
include;
• Generic infrastructure - at the local level there are Councils for Voluntary Service (CVS) and
Rural Community Councils (RCCs), often known as local development agencies. At the
regional level, there is a voluntary sector regional network - in the case of the East of England
this is COVER
• Sub sectoral or specialist infrastructure - for example, regional or sub regional networks
covering specific issues such as health and community care, funding or performance
improvement or local volunteer centres or bureaux (in some areas these are part of the CVS)
COVER also runs networks to bring together organisations from specific sub-sectors13. As many
VCOs are also registered as companies, some of the support services, such as the Business Link
network, may also have relevance to them.
In addition, support is provided to frontline VCOs working in the region by national VCOs which
have local members, for example the National Association of Citizens Advice Bureaux, and by
sub sectoral infrastructure or support organisations for example, Alcohol Concern. In addition,
some frontline VCOs assist their peers through a variety of means including mentoring and
support networks.
The government acknowledges the importance of this VCS infrastructure. It recognises that the
services and activities it provides: helps VCOs operate more effectively; gives them a voice in
regional and local policy development; and facilitates partnership working with the statutory
sector.
Regionally and locally, VCS infrastructure provides a range of services and activities covering a
range of issues including:
• Funding and finance: eg helping VCOs access funding and understand the contracting
process; find out about funding sources and make funding applications
• Encouraging volunteering: eg promoting and brokering volunteering
• Management and governance: eg providing information, advice and training on governance
issues, and helping VCOs implement appropriate quality standards
Section 3. Support for the sector - VCS infrastructure
13. See COVER website for details of networks currently active
27
Support for the sector - VCS infrastructure
• Influencing policy and practice: eg preparing collective VCS responses to policy proposals
based on consultation
• Partnership development: eg representing the VCS on partnership boards
• Identifying and filling gaps: eg developing new VCS services to meet the needs of VCOs and
the communities they serve
• Some provide services directly to the statutory sector : eg developing and running training or
other schemes on their behalf, or distributing funds for them.
Stevenage Council for Voluntary Service is a generic infrastructure organisation with a membership of
more than 100 local organisations. It has eight staff who work the equivalent of just under four and
a half full time post hours per week. Within this staffing complement the CVS operates community
accountancy and transport projects, the latter of which is underpinned by 15 volunteer drivers. The
CVS itself is supported by a further 16 volunteers.
The core work of the CVS, under each of the National Association of Councils for Voluntary Service
headings, is outlined below:
Development - Identifying need by research through questionnaires and member/public/user
consultation. Personal support offered to a broad range of groups, including start-up information,
support to new and emerging groups, ongoing work with existing groups to effect change.
Services - Information provision in the following areas: legal advice; training; funding sources; charity
law; equal opportunities; financial and organisational management and governance. Through the
mediums of: newsletters; e-briefings; telephone and face to face meetings. Direct services also
include stationery purchase, photocopying, payroll and equipment hire. Enquiries to Stevenage CVS
rose from 2,319 in the year ending 2004, to 3,250 in the financial year ending March 2005.
Liaison - Facilitating local meetings, and coordinating the information flow between statutory
agencies and the VCS. A practical example of this was supporting parents to develop a social club for
teenagers with disabilities, which now continues under the auspices of the local youth service.
Representation - Providing feedback on statutory sector policy issues, such as social inclusion,
economic regeneration, and voluntary sector strategies.
Strategy development - Engaging with local partnerships, including 14 local committees and
steering groups, as well as being a member of 11 consortia and organisations in Stevenage and
Hertfordshire.
SNAPSHOT 5 - Stevenage CVS
3.2 Local VCS infrastructure in the region
There are a significant number of organisations supporting the VCS at the local level in the
region14:
• Six county-wide bodies focus on supporting the needs of rural communities (RCCs)
14. For full details of these see the COVER website
28
Support for the sector - VCS infrastructure
• Forty infrastructure organisations (CVSs) combine a generic and volunteering support
function
• Five organisations concentrate on supporting volunteering organisations (volunteer bureaux
or volunteer centres).
In spite of this large number of organisations, provision in the region is still patchy. Although no
local area has absolutely no support, some have a very minimal service eg two days a week CVS
run from a library in Rayleigh & Rochford in Essex. Where full time services do exist, the
resources available to these organisations vary widely. To give two examples:
• An organisation operating over one district and offering volunteering support and brokerage
to its constituency receives total funding of only £30,000 per annum.
• A county organisation providing a wide range of support to its members receives £1.4
million per annum from a range of sources.
This means that some infrastructure organisations operate on a shoestring, are open for
business on a very part-time basis, and offer only a limited range of services, while others have
numerous staff offering a wide range of services. Thus there is considerable variation in the
support frontline organisations within the East of England region are able to access and we
believe this needs to be addressed.
In all, 43 of 52 generic infrastructure organisations surveyed in the region, including RCCs, CVSs
and independent volunteer centres, received approximately £15 million in funding per annum.
This comes from a variety of sources eg local authorities, grant making foundations (trusts), the
health service and Learning and Skills Councils.
Chart 4: Funding providers and amounts of funding for infrastructure organisations in the region
£3M
£2M
£1M
0
Com
m
unityPublic
&
PatientInvolvem
ent
County
Earned
Incom
e
European
SocialFund
Donations
Health
Agencies
Investm
ent
LocalAuthorities
Learning
and
SkillsCouncil
N
ational
ParentBodies
Regional
Tow
n/Parish
Trusts
Other
1,125,939
576,922
2,537,425
832,434
119,090
652,577
162,890
1,826,186
736,774
1,634,910
1,150
462,166
18,793
3,106,540
822,432
SOURCE: COVER analysis of 2004 annual accounts of 43 funding organisations
29
Support for the sector - VCS infrastructure
In addition, a Home Office grant supports COVER’s regional voluntary sector networks. This, and
the Single Regeneration Budget, EEDA funding through the ‘single pot’ programme, lottery
grants and other funding, have all contributed to increased capacity and delivery within VCS
infrastructure.
3.3 The future
A number of changes in the funding environment are likely to impact both positively and
negatively on VCS infrastructure or support for organisations and structures in the region. The
end of SRB funding may have a negative impact. However, some developments are very positive:
The Big Lottery Fund has recently announced, as part of its first wave of funding programmes
covering 2005-09, a £155 million fund which will support VCS infrastructure.
EEDA’s Investing in Communities Programme will also contribute resources to developing VCS
infrastructure
Of specific relevance is ChangeUp, a major Home Office programme investing in the
development of VCS infrastructure, which is channelling additional resources into the region -
(see page 30). This presents a real opportunity for VCS infrastructure organisations to improve
the effectiveness of support provision in the region. The themes identified in ChangeUp are
highly relevant to the VCS in the region and have been used to underpin the analysis in Part 2
of this report. COVER is the lead accountable body for the VCS in the region, playing an
important role in coordinating developments16.
About EEDA’s Investing in Communities programme15
The Investing in Communities programme relies on a sound knowledge of community needs to
ensure that public, private, community and voluntary organisations work together to tackle
deprivation and inequality in a focused way.
• EEDA will use its influence to ensure the development of well-founded community regeneration
plans which, by March 2008: address the needs of deprived communities; have the buy-in of
strategic, implementation and beneficiary stakeholders and which make a significant contribution
to the region’s Local Area Agreement goals for economic development.
• EEDA will agree long-term assistance programmes in each sub-region, to drive forward the
delivery of the economic dimensions of community regeneration plans.
• EEDA will develop several regional foundation plans, with partners, to improve the capacity of
those involved in delivering the community regeneration plans, for example, in gathering and
interpreting regional intelligence, building up community leadership skills, engaging hard to reach
groups and encouraging social enterprise.
• EEDA will ensure that opportunities for disadvantaged groups are linked into all its plans and
programmes.
Source: www.eeda.org.uk
15. See also www.investingincommunities.org.uk
16. For more information about current ChangeUp initiatives in the region see the COVER
website
30
Support for the sector - VCS infrastructure
What is ChangeUp?17
ChangeUp is a Home Office strategy for capacity building and infrastructure development in the VCS.
Its aim is that by 2014 the needs of frontline VCOs will be met by infrastructure support which is:
• available nationwide
• structured for maximum efficiency
• offering excellent provision
• accessible to all
• truly reflecting and promoting diversity
• sustainably funded.
£80 million has been invested in implementing the strategy from 2003 - 2006 at the national,
regional, sub-regional and local levels. The bulk of the £80 million is supporting sub-regional and local
initiatives benefiting frontline VCOs. The work in the Eastern region is overseen by GO-East.
Some of the funding available for national projects is supporting the development of national hubs of
expertise:
The Finance Hub - provides guidance on procurement, fundraising and social enterprise for VCS
organisations
The Governance Hub - provides information to help trustees of VCS organisations build governance
capacity and enhance their skills
The ICT Hub - will develop a co-ordinated framework of ICT guidance, good practice, advice and
support for VCOs, accessible at a local level
The Performance Improvement Hub - will develop guidance for local, sub-regional, regional and
national infrastructure organisations to help improve the quality and quantity of support they can
offer to VCOs
The Volunteering Hub - will prepare a range of resources for anyone who works with or manages
volunteers, as well as to those who want to volunteer
The Workforce Development Hub - will prepare information and news on skills development and
good employment practice for VCOs.
Part 2 of this report provides additional information on the work of these hubs and their relevance to
the VCS in the East of England.
17. For further information and links to all the hub websites see
www.communities.homeoffice.gov.uk/activecomms/sup-vcs/changeup/
31
4.1 Introduction
There are many environmental factors eg political, social, economic and technological, which
will have an impact on the future of VCOs across the country, including organisations in the East
of England. Consideration of these factors will help VCS organisations to shape appropriate
strategies for their future (see Appendix 3) and will also help statutory bodies and other
stakeholders wishing to work with the VCS to develop appropriate strategies to further their
objectives.
Our focus here is on general implications for the VCS and, therefore, this document does not
address challenges for specific sub-sectors, eg implications of changes in the structure of the
NHS for those VCS organisations working in health and social care.
4.2 Key external factors identified
At the national level, the National Council for Voluntary Organisation’s annual Third Sector
Foresight Analysis18 identifies key factors likely to impact on VCS organisations. The 2005
publication identified the following key issues and trends:
Section 4. Environmental analysis
NCVO Third Sector Foresight Analysis - some key issues and trends
The voluntary sector economy
• Gloomy post-election forecasts/expectations for the economy - but continued expectation of low
inflation and interest rates
• Voluntary sector income increasingly dominated by statutory sources
• Earned income increasing at the expense of voluntary income
• Rationalisation and phasing out of funding streams
• Continuing investment in public services, especially health and education
• Continuing efforts to remove transactional costs and administrative blockages in funding
relationships
• Public perception that taxes will rise and disposable incomes fall, combined with fragile consumer
confidence
• Rising company profits and continued emergence of the mass affluent as an important consumer
group
Individuals, communities and social cohesion
• International context and globalisation, plus international population movements
• Hardening of political positions
• Changing attitudes towards immigration
• Rise in violent crime and fear of crime
• Public policies around civil renewal and community involvement in the design and delivery of
public services
• Lack of trust in political institutions
• Media coverage
• Expansion of ICT facilitating new forms of engagement
18. Voluntary Sector Strategic Analysis 2005/6- Third Sector Foresight (NCVO 2005)
32
Environmental analysis
In July 2005 scenario planning workshops held by COVER in the East of England identified the
following factors as particularly important in the region:
• National policy initiatives and legislative change (see section 4.3 for further details)
• The emphasis on local planning and the increased role that voluntary organisations are likely
to be able to play in the process, eg LAAs, LSPs
• Changing demographics with more people who are older, frailer and more diverse
• Rural deprivation worsening, eg pressure on budgets leading to centralisation of hospital
services
• Growing expectations of a work / life balance - backed up by legislation
• An increased emphasis on the accessibility and efficient delivery of publicly funded services,
regardless of who is providing them
• Growth areas and physical infrastructure development
• Funding and finance*
• The growing professionalisation of the sector - requiring increased investment in training
and staff development*
• A lack of volunteers*
• The digital divide- the increasing relative isolation of those not using web based ICT*
* Part 2 of this report explores these issues in more detail
Public services and community governance
• Increasing demands for services and rising expectations
• Continued investment in public services, but financial pressure looms
• Desire to reduce size of government and contract with private and voluntary sectors to deliver
services
• Drives to involve users in design, planning and delivery of services
• Drives for efficiency savings
• Promotion of choice as a mechanism for improving quality
• Creation of a new legal form - Community Interest Companies
• Government interest in community engagement and governance
• Increasing freedom for high performing local authorities eg through Local Area Agreements
Trust, accountability and transparency
• Public perception that institutions are not accountable or transparent
• Public pursuit of zero risk at the expense of freedoms
• Unwillingness to trust professionals and their judgement
• Consumer interest in greater transparency
• The Charities’ Bill and media interest in public benefit
• Regulatory reform - where self-regulation is perceived to be failing
• Focus on governance and leadership
• Blame culture and the fear of failure
• Public demand for the instant availability of information
For further details, updates, and to join the Foresight Network see: www.ncvo-vol.org.uk/3s4
33
Environmental analysis
4.3 National policy initiatives and legislative change
A number of new national policy initiatives and proposals for legislative change are affecting
the environment in which voluntary organisations operate, for example:
• Compact Plus - and the appointment of a Compact Commissioner to ensure that the
Compact, which aims to secure more significant sustained partnership between the VCS and
the statutory sector is implemented (see box on page 34).
• Civil renewal and community capacity building - the development by the Home Office of a
community capacity building strategy, including efforts to promote strong community anchor
organisations and the Together We Can initiative. This includes the Civic Pioneer network which
is a network of local authorities which have signed-up to working with communities to help
them have more influence on the way local services are designed and delivered
• Sustainable communities - a £38 billion programme of action for economic, social and
environmental development in both urban and rural areas in England. Four areas have been
identified as priorities for regeneration and growth: the Thames Gateway; Ashford in Kent;
London-Stansted-Cambridge-Peterborough and the Milton Keynes/South Midlands area
• FutureBuilders - a new £215 million fund which aims to increase the role that VCOs play in
the delivery of public services in key government areas, for example health and social care and
community cohesion. Investment packages will normally combine a loan, a grant and capacity
building investment.
• ChangeUp - a major programme of government investment designed to ensure that VCOs
have the sort of infrastructure support they need to promote their future health and
development. A new independent body, Capacity Builders, will be launched in April 2006 to
oversee the programme (see Section 3 for further information).
• Strategy Unit report / Charities Bill - some of the raft of recommendations contained in the
Strategy Unit report Private Action, Public Benefit have already been implemented, for example:
- the development of a new legal structure, designed to encourage social enterprise
development
- a recognition by the Charity Commission that some sports clubs are charitable
- the establishment of a sector led self-regulatory scheme for fundraising charities.
Other recommendations need legislation and a Charities Bill is currently progressing through
parliament.
• The Russell Commission - has developed a strategy which aims to engage one million new
young people into volunteering and community action over the next five years. It is hoped
that £150m will be available to implement the strategy. £50 million has already been
pledged by government, which has also committed to match, pound for pound, money
raised from the private sector.
34
Environmental analysis
4.4 Themes in government support
The initiatives described in the last section demonstrate a series of key themes in government
support for the VCS:
Increased VCS delivery of public services - Government wants to encourage increased VCS
delivery of public services because it believes that the contracting out of public services
promotes both cost effectiveness and the responsiveness of services to individual needs. More
generally, it recognises the added value that the VCS can bring to public service delivery.
Compact development
The Compact, published in 1998, is a national agreement between the VCS and government to
improve their relationship for mutual advantage. It is underpinned by a number of codes on:
• Black & minority ethnic groups
• Community groups
• Consultation and policy appraisal
• Funding and procurement
• Volunteering
These codes each contain commitments made by both government and the VCS. For example, the
Funding and Procurement Code contains a government commitment to full cost recovery and a VCS
commitment to be open, transparent and accountable.
Since local relationships between the VCS and the statutory sector are crucially important to the
sector’s health and vitality, guidance has been published on the development of local compacts, and
work has been undertaken to promote their adoption at the local level.
In an effort to increase awareness and understanding of the Compact, and to promote adherence to
its principles and commitments, the Home Office developed a series of proposals called Compact Plus,
including the appointment of a Compact Commissioner who would support organisations in realising
these commitments and adjudicate on disagreements. It is also examining options for a kite mark or
accreditation scheme for the VCS and government on Compact compliance.
The Compact is a tool that can be used to improve partnership working between the VCS and the
statutory sector across the region. However, evidence of Compact adoption and compliance at the
local level is mixed. Most local authority areas have developed a Compact and several community
strategies have identified the promotion of the Compact as a priority. However, there is some
evidence that while local Compacts are being developed they are not being effectively implemented.
For example, consultation with local development agencies for COVER research examining the
engagement of the VCS in Local Strategic Partnerships suggests that the values and principles of the
Compact are not being observed.
At the regional level GO-East is carrying out a programme of work examining how it is implementing
Compact principles and commitments. It is also working with the regional VCS to strengthen the
development of Compact working across the region.
35
Environmental analysis
Volunteering and active citizenship - Government considers that communities are best placed to
identify their own problems and to develop feasible solutions, and it seeks to encourage and
support communities in this work. It also recognises that volunteering is a vitally important
ingredient of a strong, accountable VCS.
Improving the relationship between the VCS and the statutory sector - Government is seeking to
improve the relationship between the VCS and the statutory sector, eg by improving funding
and consultation practice and by promoting support for BME and community groups.
Encouraging social enterprise - Government seeks to encourage social enterprise in recognition
of the role that the VCS can play in public service delivery, ie generating income from this
enterprise activity, and because it acknowledges that if the sector is to continue to grow it needs
to generate more of its own income in a way which is sustainable.
Regeneration - Government acknowledges the important role that the VCS can play in urban
and rural regeneration, both as a provider of employment and training schemes, as an employer
in its own right, and because of the general contribution its services and activities make to
sustaining communities at the neighbourhood level.
Promoting VCS efficiency and effectiveness - Government seeks to help the VCS become more
efficient and effective by supporting the development of VCS infrastructure (see Section 3).
Encouraging charitable giving - Recognising the contribution that it makes to society,
government wants to promote the development of a strong independent VCS. It therefore has
an agenda to encourage charitable giving.
An underlying theme is the growing role of the VCS as a partner of the public sector. This
partnership takes a number of forms. VCOs may deliver public services, or may provide a
mechanism for involving local communities and communities of interest in the design and
delivery of public services. VCOs have the expertise to help with needs assessment and to
comment on the appropriateness and viability of government policy proposals, often reaching
the hard to reach. Increasingly government recognises that the social networks they create build
community cohesion, creating healthier and more vibrant communities.
This increasing emphasis on partnership working with statutory bodies presents a number of
challenges for VCOs:
• The maintenance of independence and a clear focus on the VCOs’ mission, rather than the
statutory sector agenda
• The need to demonstrate accountability and appropriate stakeholder involvement,
particularly the involvement of service users
• The need to understand and justify the full costs of service delivery, including capital and
other investment costs required to maintain and develop services
• Demonstrating cost effectiveness and value added, particularly in comparison with other
sectors
• Dealing with additional bureaucracy, eg demonstrating compliance with externally imposed
quality standards and other regulatory requirements.
36
Environmental analysis
4.5 Environmental analysis of sub-sectors
As noted at the start of this environmental analysis, it is beyond the scope of this document to
cover specific issues affecting particular sub-sectors of the VCS, eg health. VCS organisations
need to consider social, political, economic and technological factors specific to their own sub-
sector - see snapshot 6.
In response to COVER’s consultation paper as part of the Clear vision: Clear thinking project, the East
of England Regional Public Health Group noted that approximately 55% of the paid VCS workforce
works in health or social care settings. They also stressed the crucial role of the VCS as an advocate and
co-ordinator of the patient/community voice. This is particularly important in the context of
government policy around commissioning a patient-led NHS.
Clear recognition was given to the VCS as a source of expertise in the inclusion and inequalities
agenda, running hospices, adult mental health and learning disabilities services, Patient and Public
Involvement, the Expert Patient Programme and as a key contributor to the development and
maintenance of social capital which is increasingly being linked to improved health outcomes. The
VCS provides a valued channel of communication to and from vulnerable groups often regarded as
hard to reach by the statutory sector.
For further information see Working Together, Better Together: Voluntary and Community Sector
engaging in the Public Health Agenda in the East of England, COVER 2005
SNAPSHOT 6 - Health: an example of issues in a sub-sector of the VCS
37
5.1 Key attributes for VCO survival and development
In order to survive and prosper, all organisations, regardless of which sector they are in, need the
skills of innovators, entrepreneurs and managers, but in different proportions depending on
where they are in their organisational lifecycle and what they are trying to achieve. As in the
private sector, not all VCOs will survive and some will close down for a variety of reasons, eg
changing needs of beneficiaries or changing priorities of funders. Given the national context
outlined above, COVER’s scenario planning workshops identified some of the key attributes
VCOs will need to demonstrate if they are to succeed in the future19.
Organisations need to consider what these attributes mean for them and how to address this,
eg do they need to develop new skills sets. If so, where can they access funding to help them
with this.
5.2 Finding a way forward
Part 2 of this document examines how key environmental factors are likely to impact on the
future health and vitality of VCOs in the region and the communities they serve, under the
following headings:
• Governance
• Financing
• Workforce development
• Volunteering
• ICT
• Performance improvement
Section 5. Surviving the future - key attributes for VCO survival
19. This is based on the McKinseys 7 'S' framework of organisational survival attributes:
shared values, strategy/sustainability, structure, staff, systems, skills, style
VCO organisational attributes needed for future survival
• Independence, creativity, working together, encouraging beneficiary involvement
• Increased entrepreneurship, partnership development, sharing of generic services. Continued
quality development in all areas
• Greater organisational flexibility to meet changing needs, creating and maintaining links with
other sectors
• Increasing qualifications, skills and experience for staff and volunteers, including trustees. Greater
reliance on volunteers
• Emphasis on developing skills, in particular addressing skills shortages in leadership,
management, marketing, communication, financing and fundraising
• Economies of scale wherever possible
• Remaining democratic and user led.
Source: COVER scenario planning workshops 2005
38
Surviving the future - key attributes for VCO survival
Under each of these headings is:
• A summary of the current situation
• A summary of key issues for the future, eg political factors affecting voluntary sector
workforce development
• Specific recommendations are made in each section addressed to:
- Frontline VCOs
- VCS infrastructure organisations
- Funders and policy makers
Extensive consultation was carried out in developing this agenda and we are confident that
there is a strong consensus for this way forward. COVER will play an important role in driving
this forward, working closely with frontline VCOs, other infrastructure organisations, and
funders and policy makers in the region.
It is clear from the analysis in each section and recommendations under each theme that
training and development of staff and volunteers, including trustees, is an overriding issue to be
addressed. This is made particularly challenging in an environment where short term funding
is still the norm, and full cost recovery is not always achievable.
5.3 Recommendations
It is recommended that all with an interest in the future of the VCS take note of the
recommendations set out in Part 2. However, there are also some cross-cutting issues relevant
to all themes which are significant enough to merit some general recommendations as follows:
RECOMMENDATIONS FOR VCS INFRASTRUCTURE ORGANISATIONS,
FUNDERS AND POLICY MAKERS
1 The issue of coverage throughout the region needs to be addressed. Current provision is patchy,
despite a large number of different organisations being involved in the provision of support there
are concerns that this is not sustainable, and resources could be applied more effectively, eg
economies of scale or greater quality could be achieved through more efficient dissemination of
good practice
2 In taking forward this agenda of support for VCOs, the varied needs of different types of
organisations needs to be take into account, including the needs of community groups, rural
organisations, BME and faith based communities.
3 There is an ongoing challenge to support the sector in finding ways to clearly demonstrate the
added value of the VCS in the region.
4 Recognise the importance of physical infrastructure in community development and VCO
activities and support the need for capital and revenue investment in vital resources such as
village halls in rural areas.
39
Part 2
An agenda for the future development
of the VCS in the East of England
Section 6 Governance .................................................................................................................. 40
Section 7 Financing ...................................................................................................................... 43
Section 8 Workforce Development ............................................................................................ 48
Section 9 Volunteering ................................................................................................................ 56
Section 10 Information and Communications Technology (ICT) ................................................ 64
Section 11 Performance Improvement ........................................................................................ 70
40
6.1 The current situation
What is governance in the VCS? A definition given in the new Good Governance Code21 is that:
“Governance is the systems and processes concerned with ensuring the overall direction,
effectiveness, supervision and accountability of an organisation.”
In the VCS, trustees take ultimate responsibility for the governance of their organisations,
although they may delegate specific responsibilities to members of staff, and also work with
volunteers, services users and other stakeholders. Trustees in charitable organisations cannot
receive remuneration, except in exceptional circumstances, and so are a particular kind of
volunteer. If the organisation is a charitable company limited by guarantee then the trustees will
also be the directors of the company.
The term governance is likely to be more familiar to larger organisations, but it is relevant to
organisations of all sizes, right down to the very smallest. For example, as the Governance Code
notes, governance in a small community group might be about getting things in place, making
sure it is clear who is dong what, and making sure that all concerned are working together to a
common cause. Those involved may refer to themselves as committee members rather than
trustees, even where their legal status is in fact that of a trustee. In larger organisations, the chief
executive will play a key role in governance, acting as the bridge between staff and trustees.
At the national level, a range of organisations are involved in offering support on governance to
VCOs. As part of ChangeUp, some of these have come together to form the core group of the
governance hub of expertise:
• NCVO
• Acevo (Association of Chief Executives of Voluntary Organisations)
• Charity Trustee Networks
• BTEG (Black Training and Enterprise Group)
• Volunteering England
• Bassac (British Association of Settlements and Social Action Centres)
The hub’s initial aims are to increase the supply of trustees and board members, especially from
diverse communities, to enhance the knowledge and skills of trustees and board members, and
to increase the governance capacity of organisations to deliver their missions. An underlying
principle is that there is no one approach to good governance - appropriate governance varies
with the characteristics of organisations.
Regulatory bodies, including the Charity Commission and Companies House, also offer
information and some advice on aspects of governance. For example, the Charity Commission
produces a publication called The Responsibilities of Trustees.
At the local level, including in the East of England, most CVS offer some help with governance
Section 6 Governance20
20. See also Section 9 Volunteering - trustees are also volunteers
21. Good Governance: A Code for the Voluntary and Community Sector (National Hub of
Expertise in Governance June 2005). Downloadable from www.governancehub.org.uk.
Print copies also available at no charge.
41
Governance
issues, although the extent of this varies greatly from one area to another.
6.2 The future
Drivers for change impacting on the VCS generally will affect governance, since governance is
about overall responsibility for everything a VCO does. The issues highlighted here are only those
which are most directly related to governance:
• Increased interest in good governance in the public and private sectors is likely to impact on
the governance standards expected of VCOs, for example: the expectation that trustee
boards should operate more strategically, and periodically assess their own effectiveness, is
likely to become common
• A growth in VCS delivery of public services will increase the pressure on boards to achieve
greater clarity about mission and finances
• Continued growth in public expectations of transparency and accountability, especially
where public funding is involved, will result in trustees giving greater attention to how
they report on their organisations' activities and achievements
• The new Charities Bill will introduce changes in charity law and regulation which trustees
will need to familiarise themselves with
• VCOs will have more structural options to consider in the future, for example the
Community Interest Company, a new legal structure targeted at social enterprises
• The promotion of social enterprise activity by government and others could encourage more
VCOs to engage in trading activities which require different governance arrangements, ie
the establishment of a trading company, and/or different governance skills, ie harder
business planning including costing skills - see Section 7 on Financing
• As more VCOs deliver more public services the reputation and financial risks associated with
trusteeship will become greater, and more time and attention will need to be dedicated to
risk assessment and management
• Media interest in the sector is becoming more intense, as a result risk to the organisation’s
reputation has become a bigger issue
• Recruitment and retention of trustees is likely to become more difficult as people work
longer and as the challenges associated with trusteeship increase
• As it becomes more difficult to recruit trustees with the right skills VCOs will need to think
more creatively about what motivates people to become trustees and how to make the
experience rewarding
• In many VCOs trustees take a lead in managing relationships with key stakeholders, as cross
sectoral partnership working becomes more common these relationships are becoming
more complex, and there are more of them
• As the trustee role becomes more demanding, trustees will expect better induction, support
and training for their role
• As the trustee role becomes more demanding trustees, and those who advise and train
them, are likely to seek more support, particularly from their peers. ICT developments are
likely to facilitate the development of communities of practice and communities of interest
• ICT developments may improve communication between staff and trustees, increasing
levels of involvement and the speed of decision making
• Virtual meetings, eg video or telephone conferencing, will become easier and cheaper. This is
a particularly beneficial development for VCOs operating over a large geographical area
• But both of the above could increase the excluding effects of the digital divide.
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England
Clear vision Clear thinking - a future development of the voluntary sector in the East of England

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Clear vision Clear thinking - a future development of the voluntary sector in the East of England

  • 1. Commissioned by Clear vision: Clear thinking - future development of the voluntary sector in the East of England
  • 2. 1 Foreword The community and voluntary sector faces challenging times. In political terms, there are pressures for the sector to deliver a greater share of public services, while in economic terms, contracts and tenders are increasingly replacing grants. Meanwhile, demographic factors are forcing the voluntary and community sector to reshape itself. By 2020 our region will have grown by another million people, and our population will continue to get older, frailer, more diverse, and more polarised as the health and wealth gaps grow. Already one million people in the region live in poverty, and the sector will have to respond to these changes in terms of our beneficiaries, our mission, developing our workforce, and organisational and partnership development. The Clear vision: Clear thinking project is the first stage in the development of a ten year strategy to help the sector adapt to these changes. A joint voluntary and community sector / public sector initiative, the report provides us with a starting point and a menu of possible options. The project, the first of its kind in the region, gathered information on the trends and issues facing the sector which, together with suggested options for the sector's development, were incorporated into a three month public consultation. The conclusions from that consultation were then turned into a series of recommendations specifically aimed at frontline VCOs, VCS infrastructure organisations, and funders and policy makers, and forms the core of this report. We urge all those involved in, and with, the voluntary and community sector in the region to consider the relevance of these recommendations to their own future plans over the next decade. Meanwhile work will be continuing with the sector to identify, from the menu of possible options, the key drivers for change. This will lead to the development of effective, sustainable support that enables the VCS to confront the challenges it faces and to make the most of available opportunities over the next five years. Mary Sanders, chair COVER Andrew Cogan, ceo COVER
  • 3. 2 COVER is a network of networks and partnerships that represents and coordinates a wide range of community and voluntary groups in the six counties and unitary authorities of the Eastern Region. These counties are: Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk; and the unitary authorities of Luton, Peterborough, Southend-on-Sea and Thurrock. The work was commissioned by the East of England Development Agency, EEDA, and was led and developed by the Community & Voluntary Forum: Eastern Region, COVER. The contents of this document are based on extensive desk research, analysis, discussions, scenario planning workshops and consultation with stakeholders in the region between March and December 2005. COVER - Background information The final draft was written by Jean Barclay and Margaret Bolton, under the guidance of COVER. We would like to thank all those who contributed to the creation of this report, in particular Tim Allard, Andy Cogan, Jamie Conway and Mark Freeman, under the direction of Sally Dyson, and the many members of the voluntary and community sector in the East who contributed their thoughts and comments. The report was commissioned by the East of England Development Agency from the Community & Voluntary Forum: Eastern Region. For additional copies of the report, please contact COVER at: Eagle Stile Tel: 01799 532 880 Rectory Farm Barns Walden Road Fax: 01799 532899 Little Chesterford CB10 1UD Email: office@cover-east.org First published in March 2006 While all reasonable care has been taken in preparing this report, the publishers cannot assume responsibility for any errors or omissions. This report was made possible by support from: Acknowledgements
  • 4. 3 This document is in two parts: Part 1 sets the context, and is designed to help voluntary and community sector, (VCS), organisations and their stakeholders plan more strategically for the future. Part 2 sets out an agenda for the future health and development of the VCS in the East of England. At the end of each section there are specific recommendations for policy makers/funders/service commissioners, and for voluntary and community organisations, including specific recommendations for VCS infrastructure organisations. Contents Executive summary of recommendations.................................................................. 4 Part 1 Context Section 1 About the East of England ........................................................................................ 12 Section 2 About the Voluntary and Community Sector (VCS) ................................................ 18 Section 3 Support for the Sector - VCS infrastructure ............................................................ 26 Section 4 Environmental Analysis ............................................................................................ 31 Section 5 Surviving the Future - key attributes for VCO survival............................................ 37 Part 2 An agenda for the future development of the VCS in the East of England Section 6 Governance ................................................................................................................ 40 Section 7 Financing the VCS ...................................................................................................... 43 Section 8 Workforce Development .......................................................................................... 48 Section 9 Volunteering .............................................................................................................. 56 Section 10 Information and Communications Technology (ICT) .............................................. 64 Section 11 Performance Improvement ...................................................................................... 70 Appendices Appendix I Glossary...................................................................................................................... 74 Appendix II Questions for voluntary and community organisations to consider .................... 75 Appendix III Key references............................................................................................................ 76 If you know of anyone who needs this document in another format or language, please contact COVER. Clear vision: Clear thinking - future development of the voluntary sector in the East of England
  • 5. 4 COVER’s Clear vision: Clear thinking report, commissioned by the East of England Development Agency, EEDA, in 2005, sets out the importance of the voluntary and community sector, VCS, to the East of England region in the wider regional context, and highlights key challenges for the VCS in the future. - part 1 of the main report In Part 2, six key themes are explored in detail: governance; financing; workforce development; volunteering; ICT and performance improvement. These are the six themes identified in the Home Office ChangeUp programme as being crucial for building capacity in voluntary and community organisations, VCOs. In each section of Part 2, the current situation and issues for the future are summarised, providing the background to the recommendations under each theme. Recommendations are aimed at frontline VCOs, infrastructure organisations and funders and policy makers - these together form COVER’s agenda for the future development of the VCS in the region. Key regional bodies, both statutory and voluntary, need to recognise the importance of their leadership roles in supporting these developments. The report’s recommendations, relating to each of the six themes, are set out in this summary for each key audience. Some general recommendations are also made which are relevant across all themes. It is clear from the analysis in the main report that training and development of staff and volunteers, including trustees, is an overriding issue to be addressed, but issues around short term funding and full cost recovery create barriers to progress. Extensive consultation was carried out in developing this agenda and we are confident that there is a strong consensus for this way forward. RECOMMENDATIONS FOR FRONTLINE VCOs: Note that some of these will only apply to organisations with paid staff Governance • Ensure your trustees/board members have access to the increasingly available information on good practice in governance • Identify the key training needs of trustees or directors, and identify practical and affordable ways of addressing these, eg invite an expert speaker on governance to a board meeting, run a training course for your trustees, etc • Keep your governance arrangements under review as the organisation changes its activities, eg if developing a new trading venture. Financing • Be aware of the full range of funding options and sources available in your area and ensure that you are linked into networks which can keep up to date on funding locally, regionally, and at the national level, and through the Finance Hub • Recognise different skills are required for generating income in different ways, and consider how to develop these skills, eg by seeking training from the local Council for Voluntary Service, CVS • Develop an understanding and analysis of the full costs of the services or activities so that it can be built into your fundraising plans / funding applications / pricing of services - this will help you operate more sustainably. Executive Summary of Recommendations
  • 6. 5 Executive Summary Workforce Development • Consider how to develop the generic skills of your workforce, in particular the benefits of developing better management, leadership and ICT skills • When recruiting staff recognise particular skills which those outside the sector may bring to your organisation • Consider how to adopt good practice in employment and recruitment in your organisation • Encourage continuing professional development and consider developing career pathways so that new staff can plan their futures in the sector (although it is recognised that this is likely to be difficult for organisations not employing large numbers of staff) • Consider your role in the Skills for Life agenda - it is a governmental and Learning & Skills Council priority. VCOs may be in a unique position to identify and work with disadvantaged or hard to reach groups who wish to improve their skills. Volunteering • If your organisation involves volunteers, consider how you recruit and make your organisation more attractive to a wide range of volunteers, including potential board members, and consider how barriers to volunteering can be overcome • If your organisation involves volunteers in working towards your mission, ensure you offer high quality volunteering experiences and opportunities, based on nationally recognised good practice • Explore ways in which your organisation can maximise the income it receives to pay for support for volunteers • Ensure that volunteering remains independent, while taking advantage of the government’s interest in encouraging citizenship and volunteering, eg new schemes and incentives to encourage young people to volunteer • Consider the benefits there might be to your organisation / to your volunteers in developing ways to accredit the volunteering experience you provide. ICT • Develop a strategy for how you will use ICT in your organisation. Recognise that ICT strategies are likely to need to be integral to all aspects of your activities - ICT should no longer be thought of as an add on • Ensure you plan and budget for adequate access to ICT services and support eg broadband access, technical support, virus protection, back ups etc, particularly for any activities which are highly ICT dependent • Ensure your budgeting allows for appropriate renewing/upgrading of your ICT to meet your organisation’s needs • Consider how improving the presence of your organisation on the internet will help you in achieving your organisation’s goals • Aim to recruit ICT literate employees - or ensure you can offer adequate ICT training for those who do not already have strong ICT skills • Explore how additional use of ICT could benefit your organisation and its beneficiaries, eg use of a database to manage key information, use of the internet • Consider whether it is relevant for your organisation to help people cross the digital divide in the course of its work, including help for people with disabilities around the use of ICT • Consider the benefits and feasibility of involving more ICT skilled people in your organisation, eg recruiting young people with ICT skills as trustees or volunteers.
  • 7. 6 Executive Summary Performance Improvement • Ensure you are aware of the different tools and techniques that your organisation might use to manage and monitor its performance, eg outcomes assessment, strategic planning etc • Consider whether your organisation needs to develop work in this area • Periodically ask key stakeholders, including service users, what they think of your VCO’s performance • Include in funding bids an element of funding for the evaluation of funded programmes • Nominate a board member, or sub group of the board, to consider organisational performance and how it might be improved • Keep your arrangements for managing and monitoring performance under review and ensure they are adapted appropriately as things change RECOMMENDATIONS FOR VCS INFRASTRUCTURE ORGANISATIONS: Governance • Research the advice, information and support available to VCOs in the region on governance and how provision might best be developed in the future • Specific attention should be paid to recruitment, and an initiative developed to helpVCOs recruit and retain trustees with the right skills and experience, and from diverse communities • Specific attention should also be given to the development of trustee networks offering peer support • Promote information on good practice in governance, eg The Code of Governance, in a way that meets the needs of different types and sizes of VCOs • Offer services to organisations in their start-up phase. Governance support in the early stages can make a big difference to the success or failure of an organisation • Ensure training in aspects of governance is available throughout the region for trustees, staff and other stakeholders Financing • Build on existing material to develop more comprehensive information about levels and types of funding available, from loan finance to grants, support services and training which can help VCOs secure and manage funding. Note that small community groups will have different information and support needs from bigger VCOs • Connect to the Finance National Hub, and coordinate best practice information and resources in the region/local area around funding and investment policy, advice and guidance • Information about tender opportunities, advice and guidance, ideally in a standardised format for all local authority contracts, to be made available on a centralised VCS website • Develop training to prepare organisations for tendering and contracting • Provide practical support and leadership to Local Strategic Partnerships, including joint work on procurement issues, as well as promoting partnership working across economic and community development and procurement departments of local authorities • Compile a digest of joint working and partnership toolkits. Partnership development was a key recommendation of the EEDA report Beyond Grants; and joint working, ie sharing facilities and resources, can reduce costs • Secure funding to re-establish the Business in the Community Partners in Leadership with Community Enterprise programme, since appropriate pro-bono assistance can help VCOs develop income generating ventures
  • 8. 7 Executive Summary • Gather and promote case studies of successful regional social enterprises to highlight the benefits of social enterprise activity to the VCS • Raise awareness among VCS stakeholders of the scope, potential and possible limitations of social enterprise activity in the VCS • Sign-up to implementing the new National Occupational Standards in social enterprise, and offer a programme of accredited training in social enterprise development • Ensure support for VCOs involved in social enterprise is offered in the context of other VCS support, eg integrate this support with other CVS services. Workforce Development • Promote the sector as a place to work, including generating more opportunities for relevant work experience in the VCS and highlighting potential career pathways • Ensure workforce development needs of the VCS are given consideration in the development of Local Area Agreements, and Community Plans • Promote and facilitate the development of career pathways within the sector, so that existing staff and new entrants can plan their futures • Promote the recognition of key transferable skills that those from outside the VCS can bring to it • Develop and disseminate good practice in employment and recruitment to the sector • Ensure the sector has access to affordable, appropriate and timely employment / human resources management advice • Develop systematic ways of spreading good practice in all aspects of workforce development, between county, regional, and national levels • Promote the use of appropriate quality frameworks/systems in relation to all aspects of VCS workforce development, taking into account the varying needs within the VCS • Ensure a wide range of affordable training is on offer to meet the needs of VCOs, including community based organisations and those with no paid staff (see also Section 9 - Volunteering) • Identify and implement ways of increasing the provision and take-up by VCOs of generic training in management, leadership and ICT skills • Compile listings of appropriate accredited training and train the trainer courses and promote VCS take-up of these • Explore models of accreditation for VCS training which do not result in a loss of the uniquely successful nature of existing training • Explore the role of the sector in the formation of the National Occupational Standards. These are being promoted by the new Workforce Development Hub and by the Sector Skills Development Agency • Support the development of training consortia where this could add value in meeting either the VCS’s own workforce development needs or VCS service delivery to other individuals and organisations • Develop and promote more equal partnership working in training, and ensure that the role of the VCS is recognised and rewarded. This is especially important when working with traditional training providers • Develop and promote models of full cost recovery in relation to training. This includes work to calculate the cost of supporting disadvantaged clients into training • Explore and promote new modes of delivery, eg how to use new technology to ensure training can be more widely accessible • Develop and promote mechanisms to enable more VCS organisations to sell training to generate an income, while furthering their mission
  • 9. 8 Executive Summary • Develop communication channels within the VCS and with other bodies to build on the VCS’s ability to reach large numbers of individuals who other organisations classify as hard to reach. This could be promoted carefully and charged for where necessary, as a means of supporting government objectives - but it is essential that this is carried out without losing the trust that the sector has with its clients, and without becoming the mouthpiece of government • Promote and offer training to ensure that staff in the VCS have literacy, language and numeracy skills to carry out their roles, and access to advice and training in the Skills for Life area where appropriate. Volunteering • Ensure coverage in the region is addressed so that a sustainable volunteer brokering service is available in all local areas • Promote the benefits of volunteering and promote volunteering opportunities, as well as related schemes and incentives available • Identify and promote good practice in involving volunteers, overcoming barriers to involvement and case studies demonstrating innovative ways of involving volunteers • Promote appropriate ways of accrediting the volunteering experience and the benefits this might bring. ICT • Ensure VCOs have access to training in how to use ICT to benefit their work - this should address the needs of a wide range of organisations, including those working with people with disabilities and those without paid staff • Ensure VCOs have access to appropriate training in a wide range of specific ICT skills at affordable cost • Promote ways the VCS can help people cross the digital divide and the benefits of this, eg promote the range of information available on the internet • Ensure VCOs have access to information about sources of funding for ICT related expenditure, eg training, database development, hardware • Consider offering a low cost, easily accessible ICT support service to the VCS as a social enterprise • Promote the benefits of ICT to VCOs by highlighting real examples of how it has been used effectively, eg video/voice conferencing to save time travelling to meetings • Promote good practice in making websites accessible/appropriate for particular sections of the community, eg people with disabilities • Ensure that good practice and learning from the ICT National Hub is disseminated appropriately, in particular encouraging better use of existing ICT. Performance Improvement • Examine the advice, information and support available to VCOs in the region about performance improvement and how provision might best be developed in the future • Develop peer to peer support schemes • Promote and develop pro-bono support schemes • Promote information on performance improvement, eg that developed by the Performance Improvement Hub, in a way which meets the needs of the wide range, types and sizes of VCOs • Offer diagnosis services and support through the performance improvement process - this is regarded as key to helping organisations work through the options and successfully implement improvement programmes • Ensure training in different performance improvement tools and approaches is available throughout the region for trustees, staff and other stakeholders.
  • 10. 9 Executive Summary RECOMMENDATIONS FOR FUNDERS AND POLICY MAKERS: Governance • Recognise the need for funding for VCOs to support governance development, eg funding for trustee training • Follow good practice in funding governance development (the Governance Hub is planning to define and promote this) • Fund a review of information, advice and support on governance for the VCS in the region, which should include an assessment of gaps in provision. • Provide funding for provision which fills the service gaps identified above. Financing • Join the Finance National Hub to keep up to date with developments in good practice in financing and financial management in the VCS • Sign up to the Compact Funding and Procurement code and implement its recommendations in full • Raise awareness and provide a training programme for local authority procurement officers on the added value, benefits and obstacles faced by VCS and Social Enterprise organisations in accessing and bidding for contracts • Accept full cost recovery in your financing of VCS services, including those provided by VCS support agencies • Consider funding co-located sources of support to the VCS and social enterprises eg such as the proposed Cambridge Community Innovation Centre or other models of network or cluster development in the VCS. Workforce Development • Statutory and charitable funders, including government departments and purchasers of the activities of VCOs, should invest in the skills and learning activities and good employment practice of VCOs - particularly to address specific skills gaps identified in the region, eg generic management and leadership skills. This will enable VCOs to continuously improve their performance and deliver good value for money • When funding staff posts or volunteering opportunities, funders should ensure that money for training is built into the cost and that the funding covers this cost • Ensure that funded organisations have appropriate HR and workforce development policies and procedures in place to support staff and volunteers, and that they are meeting minimum standards • Ensure that organisations are taking account of the full cost of training and support, and that all this is covered in the amount awarded • Work with funded VCS organisations to draw on their expertise to support the development of good practice around workforce development. Volunteering • Recognise that involving volunteers is not free - support is needed for volunteer activity and there are associated costs • Provide secure and sustainable funding for volunteering infrastructure, eg volunteer centres, at a local level
  • 11. 10 Executive Summary • Recognise the need for organisations involving volunteers to invest in promoting the benefits of, and opportunities for, volunteering • Recognise the need for investment in enabling organisations to exploit new technological platforms for recruiting volunteers • Recognise the importance of informal volunteering as well as formal volunteering - and recognise where these need to be handled differently • When involving volunteers in the work of public sector organisations, be aware of good practice in volunteering - but recognise that the motivations and limitations of volunteers in such cases may differ from those of volunteers involved with VCOs ICT • Encourage better use of ICT, eg by promoting examples of the benefits of its use • Offer funding for equipment, software renewals, upgrades and support services - ensure this covers the full cost of ICT use • Offer funding for ICT training in the VCS, including the strategic use and planning of ICT • Offer funding for ICT training and development in the VCS which meet diverse needs of groups who are experiencing digital exclusion, eg rural communities, elderly people, disabled people. Performance improvement • Fund a review of information, advice and support on performance improvement for the VCS • Recognise the need for funding to VCOs to enable them to improve their performance, eg by developing improved information systems, implement outcomes monitoring systems, etc • Allow passporting between different quality standards and systems. VCOs are often required to implement a new standard for a particular funding stream regardless of the fact that they have already achieved a standard with most of the same elements • Fund a programme of work examining how VCOs, in particular sub sectors, can demonstrate the benefits of the VCS and the added value of their work (see discussion of added value in Part 1). CROSS CUTTING RECOMMENDATIONS FOR VCS INFRASTRUCTURE ORGANISATIONS, FUNDERS AND POLICY MAKERS: • The issue of coverage throughout the region needs to be addressed. Current provision is patchy. Despite the large number of different organisations involved in the provision of support there are concerns that this is not sustainable and resources could be applied more effectively • In taking forward this agenda for support for VCOs the differing requirements of different types of organisations needs to be taken into account, including those of community groups, rural organisations, BME and faith based communities • There is an ongoing challenge to support the sector by finding ways to demonstrate clearly the value added by the VCS in the region • Recognise the importance of physical infrastructure in community development and VCO activities, and support the need for capital and revenue investment in vital resources such as village halls in rural areas.
  • 12. 11 Part 1 Context Section 1 About the East of England .......................................................................................... 12 Section 2 About the Voluntary and Community Sector (VCS) .................................................. 18 Section 3 Support for the Sector - VCS infrastructure .............................................................. 26 Section 4 Environmental Analysis .............................................................................................. 31 Section 5 Surviving the Future - key attributes for VCO survival.............................................. 37
  • 13. 12 1.1 Population statistics1 The East of England covers an area of 19,110 square kilometres and encompasses the counties of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk, and the unitary authorities of Peterborough, Luton, Southend on Sea and Thurrock. Most recent population figures (for 2003) give the population as 5.46 million, which represents 9.2% of the population of the United Kingdom of 59.55 million, and an average population density in the region of 286 people per square kilometre. Population density was highest in Luton Unitary Authority, with 4,271 people per sq. km, one of the highest densities outside of London. The local authority districts of Breckland, and King’s Lynn and West Norfolk had the lowest population densities with 95 and 97 people per sq. km respectively. The population in the East of England increased by 12.5% between 1981 and 2003. The largest population change was in East Cambridgeshire where there was an increase of 44.5%. Half the population live in rural areas of the region, which represents 45% of the total region. The region has no major conurbations, but encompasses a variety of new and historic towns and cities, together with extensive rural areas. It has an attractive and high-quality environment, including areas of unspoilt countryside and coastline, attractive villages, market towns, and distinctive historic cities such as Cambridge and Norwich. Section 1. About the East of England Table 1: Population, by county, within the East of England COUNTY OR UNITARY POPULATION AREA DENSITY AUTHORITY AREA (thousands) (sq km) (people per sq km) Bedfordshire 389 1,192 326 Cambridgeshire 571 3,046 187 Essex 1,324 3,465 382 Hertfordshire 1,041 1,643 634 Norfolk 811 5,371 151 Suffolk 678 3,801 178 Luton UA 185 43 4,302 Peterborough UA 159 343 464 Southend on Sea UA 160 42 3,810 Thurrock UA 145 163 890 Total for region 5,463 19,109 286 1. All figures in this section taken from Office for National Statistics 2005. You can find links to figures for the East of England via www.eastofenglandobservatory.org.uk
  • 14. 13 About the East of England Table 2: Percentage of population who are elderly, BME or have a disability or a limiting long term illness AREA % OF PENSION % OF NON-WHITE % WITH LIMITING AGE OR OVER ETHNIC GROUPS LONG TERM ILLNESS Bedfordshire 16.7 6.7 14.3 Cambridgeshire 17.3 4.1 14.6 Essex 19.7 2.9 16.4 Hertfordshire 17.6 6.3 14.1 Norfolk 23.3 1.5 19.4 Suffolk 21.4 2.8 17.1 Luton UA 14.3 28.1 15.3 Peterborough UA 16.3 10.3 16.8 Southend on Sea UA 21.4 4.2 19.1 Thurrock UA 15.3 4.7 16.1 Average for the region 19.2 4.9 16.2 As Table 2 shows, there is considerable variation in key characteristics of the population, both between and within the local authority areas: The percentage of people of pensionable age or older averaged 19.2% overall (compared with 18.5% for the UK as a whole), ranging from 14.2% in Cambridge, to 29.6% in Tendring in Essex. The proportion of the population who were from non-white ethnic groups was 4.9%, but this varied from just 0.8% in North Norfolk to 28.1% in Luton. A total of 16.2% of people had a limiting long term illness compared with 18.5% for the UK as a whole, but within the East of England region this varied from 12.4% in East Hertfordshire to 24% in Tendring. 1.2 Economic characteristics of the region The lack of major conurbations, like those of Manchester, Birmingham or London, and of other post-industrial areas experiencing intense deprivation and poverty, means that the region is assumed to be affluent, and averaged data reinforces this view. However, the regional economy has undergone significant structural change in recent years, including the loss of an estimated 60,000 jobs in agriculture, the closure of important industries, including car making in Luton, and the decline of seaside towns like Great Yarmouth, which is in the top ten of the most deprived places in Britain. Parts of the region suffer from the London effect, which can have damaging consequences, including a lack of social cohesion and insufficient affordable housing. Other parts of the region, particularly Norfolk and Suffolk, face problems associated with remote, peripheral areas, ie few employment opportunities, low wages and limited access to services. Overall, however, as Table 3 shows, unemployment at 4.2% in 2003 was lower than the UK average of 5.1%.
  • 15. 14 About the East of England Table 3: Key statistics for the East of England2 EAST OF UNITED ENGLAND KINGDOM Population, 20031 (thousands) 5,463 59,554 Percentage aged under 16 19.7 19.7 Percentage pension age and over 19.2 18.5 Standardised mortality ratio (UK=100), 2002 92 100 Infant mortality rate,2 2002 4.4 5.3 Percentage of pupils achieving 5 or more grades A*-C at GCSE level or equivalent, 2001/02 55.3 52.5 Economic activity rate - spring 2003 (percentages) 81.9 78.8 Employment rate, spring 2003 (percentages) 78.5 74.7 Unemployment rate, spring 2003 (percentages) 4.2 5.1 Average gross weekly earnings: males in full-time employment, April 2002 (£) 506.3 511.3 Average gross weekly earnings: females in full-time employment, April 2002 (£) 375.1 382.1 Gross value added, 2001 (£ million) 85,775 874,227 Gross value added per head index, 2002 (UK=100) 110.1 100.0 Total business sites, 2002 (thousands) 248.0 2,538.1 Average dwelling price, 2001 (£) 160,495 145,320 Motor cars currently licensed, 2002 (thousands) 2,694 25,782 Recorded crime rate, 2002/03 (notifiable offences per 100,000 population) 9,084 11,327 Average gross weekly household income, 1999-2002 (£) 538 510 Average weekly household expenditure, 1999-2002 (£) 400.5 379.7 Households in receipt of Income Support/Working Families Tax Credit, 2001/02 (percentages) 12 17 2. Notes to Table 3 1. Population figures for 2002 are mid- year population estimates and include provisional results from the Manchester matching exercise. Pension age is men aged 65 and over and women aged 60 and over. 2. Deaths of infants under one year of age per 1,000 live births. 1.3 Deprivation As the figures in table 3 show, overall the East of England is a relatively affluent region compared with the rest of the UK. While this is clearly a good thing for the region as a whole, it means that the East of England has access to fewer area based funding sources than other regions. However, within the East region, there are significant localised areas of deprivation and a large number of people in poverty.
  • 16. 15 About the East of England 3. www.eastofenglandobservatory.org.uk The main OSEP partners are the East of England Regional Assembly, the East of England Development Agency, the Government Office for the East of England, the Eastern Region Public Health Observatory and COVER, representing the Community and Voluntary Sector Eastern Region. 4. Sustainable Communities: People, Places and Prosperity: A Five Year Plan from the ODPM - January 2005 According to the Observatories Social Exclusion Project (OSEP)3, it is estimated that 22% of children and 25% of pensioners live in poverty. Despite relatively high employment rates, in 2001 7.5% of working age people were living in workless households. OSEP also points out that there are high numbers of people with poor skills, eg around 700,000 people have poor literacy and numeracy skills, and in certain districts the percentage of the working age population with no qualifications is over 20%. OSEP highlights a wide variation in deprivation levels across the region: “Ninety two wards in the region fall within the 20 per cent most deprived wards in England. Among these, Regent and Nelson wards in Great Yarmouth (ranking 19th and 37th respectively), Central in Peterborough (99th), Lynn North in King’s Lynn and West Norfolk (139th) and Golf Green in Tendring (161st) are the most deprived. At district level, Great Yarmouth, Peterborough, Tendring, Waveney, Norwich, Luton, King’s Lynn and West Norfolk, Thurrock, Basildon and Bedford have the highest local concentration scores. Great Yarmouth is ranked as the fifth most deprived district in the country on this measure”. Identification and understanding of such areas is important as regional development agencies in each region are encouraged to focus their investment on the most deprived wards. 1.4 Looking ahead - the East of England 2020 According to Office of National Statistics estimates, the regional population is expected to grow to 5.95 million by 2011, and to 6.14 million by 2021. The region is currently facing a huge challenge in terms of growth. Within the government’s Sustainable Communities Plan4 provision has been made for a further 23,900 homes to be provided by 2016, which are in addition to current plans, taking the total for the region to 478,000 new homes. Three of the four National Growth Areas identified in the Plan are within, or encompass, parts of the East of England. They are: the Thames Gateway (South Essex); the Milton Keynes/ South Midlands conurbation (encompassing parts of Bedfordshire); and the London-Stansted- Cambridge-Peterborough corridor. In addition, the Plan envisages 420,000 more jobs in the region, and those workers and their families will need affordable housing. This provides a serious challenge for health and care services, and the economic and environmental sustainability of the region - and as a consequence for VCOs within these areas. Engagement with growth plans is made more challenging by the fact that these growth areas are defined in a way which does not follow current administrative boundaries. By 2020, the region’s population will not only have grown to over 6 million, it will also be getting proportionately older. By that time 50 percent of the population will be over 50 years old (Essex has already reached this proportion and is a foretaste of things to come). The population will also be frailer - the percentage coping with a long term illness, disability or not enjoying good health is likely to increase significantly as the population ages. The population is also more likely
  • 17. 16 About the East of England to be single, with 40 percent of adults over 16 currently single, and this is a trend that is growing. The population will also be more diverse. Currently less than 5% of the region’s population come from black or minority ethnic groups, but that could grow to 9%. All these demographic trends provide challenges for the VCS in terms of beneficiaries, activities, structures and partnerships. 1.5 General regional infrastructure Within the East of England there are several key statutory bodies with an interest in strategies for the future which are particularly relevant to the VCS in the region: East of England Regional Assembly, EERA The East of England Regional Assembly exists to promote the social, economic and environmental well being of the region through a partnership of elected representatives and other regional stakeholders. The Integrated Regional Strategy, IRS, is an EERA led strategic initiative, the vision for which is: ‘to improve the quality of life for everyone who lives or works in the East of England’. The IRS tackles the critical issues facing the region, for example housing, transport, health, skills and the economy. It combines a strong strategic vision for the region with the necessary co-ordination framework for all other strategies, regional partnership bodies and delivery mechanisms. EERA works closely with the Government Office for the East of England and the East of England Development Agency5. East of England Development Agency, EEDA EEDA is a government-funded organisation sponsored by the Department of Trade and Industry, DTI. It is one of nine regional development agencies, RDAs, created in 1999 to transform England’s regions through sustainable economic development. EEDA’s key task is to improve the region’s economic performance. EEDA places emphasis on its role as a regional leader and catalyst, and aims to influence the £25 billion of public spending in the East of England. As the EEDA website6 highlights: “With a budget of £90 million in 2004/5, EEDA’s challenge is to deliver sustainable economic growth with a budget that equals only 0.1 per cent of the region’s gross domestic product.” Its roles encompass: • Principal advocate - for the development of the region • Strategic navigator - influencing major strategic change • Convenor - facilitating key regional partnerships • Expert - consulting, advising and problem-solving • Mental adventurer - innovator of changes that others could not undertake • Commissioner - of investment programmes, joint ventures and sister organisations • Delivery manager - of projects and programmes in pursuit of the roles above. Government Office for the East of England, GO-East The Government Office for the East of England brings together the varied regional activities of a range of government departments. Regional government offices are part of the Office of the Deputy Prime Minister, which covers regional and urban policy, local government, planning, 5. The leaflet "Working together for the East of England " Is available from www.eera.gov.uk provides some information on how these three organisations work together 6. www.eeda.org.uk
  • 18. 17 About the East of England housing and regeneration. Other departments with a stake in GO-East are: • Department for Education and Skills, DfES • Department for Work and Pensions, DWP • Department of Trade and Industry, DTI • Department for Transport, DfT • Department for Environment, Food & Rural Affairs, DEFRA • Home Office, HO • Department for Culture, Media & Sport, DCMS • Cabinet Office, CO GO-East also works closely with the public health teams from the Department of Health. In addition GO-East works with a range of regional and local bodies, including local authorities, businesses, local education authorities, voluntary organisations, the health service, and local people to help create sustainable communities and to maximise competitiveness and prosperity in the region. All the above bodies work closely together and relevant information about the region can be found on the EEDA maintained website: www.eastofenglandobservatory.org.uk.
  • 19. 18 2.1 What is the voluntary and community sector? The VCS is extremely diverse. It is made up of a range of organisations with different purposes, ways of working, types of beneficiary and size. In developing this strategy we have adopted the following definition: The VCS is sometimes seen as comprising two overlapping segments: • The voluntary sector, of which the key characteristics are that organisations are governed by volunteers (trustees) and that there are no profit distributions to external shareholders. • The community sector comprises voluntary organisations rooted in their local community. Many rely solely on volunteer effort, without paid staff. It should be noted that there is a lack of consensus on precise definitions and blurred boundaries exist between these segments. VCOs can have differing status and legal structures. Some are charitable and registered with the Charity Commission. In order to be recognised as a charity an organisation needs to have charitable objects, ie relief of poverty, advancement of education, promotion of religion or other purposes of benefit to the community. And any private benefit deriving from their activities must be purely incidental. Charities benefit from particular tax reliefs, including relief on individual donations and rate relief. Generally speaking all but the smallest charities are registered with, and report to, the Charity Commission. Charitable status does not provide an organisation with a legal personality, ie enabling it to be sued and to sue. Some charities are unincorporated associations, which means that all the trustees and board members are personally liable. Many charities incorporate as companies limited by guarantee. This means that their board members are company directors and trustees. These organisations report to Companies House as well as the Charity Commission. Non-charitable VCOs have three main incorporated structures to choose from: company limited by guarantee; industrial and provident society; or community interest company (recently introduced). The last of these is a legal form based on a membership or mutual structure and is common among housing associations. Within the East of England there are currently more than 14,000 charities registered with the Charity Commissioner. Note that this will include some organisations who consider themselves part of the community, rather than the voluntary, sector. It is estimated that there are, on Section 2. About the Voluntary and Community Sector VCOs are independent, not for private profit, mainly charitable groups, run by boards or committees of volunteer trustees. They provide services to a wide range of communities of need, place and interest. They are often value based organisations, for which the principle of how a service is provided is as important as the kind of work undertaken.
  • 20. 19 About the Voluntary and Community Sector average, at least three community groups for every one registered charity. This means that there are likely to be just under 45,000 community organisations operating within the East of England. As a measure of their significance, this represents one organisation for every 90 members of the population7. It is sometimes assumed by those outside the VCS that all VCOs rely solely on volunteer effort to deliver services. Voluntary organisations can be big businesses, employing hundreds of staff and earning substantial amounts of income, which is used to further their purpose. While some organisations, particularly in their early years, are largely reliant on volunteers to deliver their activities. So, governance by volunteers aside, VCS organisations will involve volunteers to very varying degrees, as Figure 1 shows: Income sources VCOs fund their activities by raising income from a wide variety of sources. Some provide services under contract to local authorities or central government agencies. Some charge fees to service users, while others generate income from public donations, subscriptions or grant aid. Funding is often short term and designated for new projects only, which makes forward planning and sustainability difficult. 2.2 Why is the VCS important It is accepted by government that the VCS has an important role to play in: helping deliver public services; contributing to building stronger, more cohesive communities and creating employment and helping people back into work8. As the Treasury says: “The third sector can offer a superior alternative to both the private and public sectors in the delivery of public services in certain circumstances. This is particularly true when government failures exist, and neither the state nor the market can respond and deliver in an equitable or efficient manner”9. 7. Involvement is by no means uniform and one individual may well be involved in many different organisations, while another will not be involved at all. 8. Exploring the role of the third sector in public service delivery and reform: a discussion paper (Treasury 2004) 9. See last note. Figure 1: Types of volunteer involvement in the VCS TRUSTEES ONLY VOLUNTEERS ONLY MAINLY VOLUNTEERS WITH SOME PAID WORKFORCE MAINLY PAID WORKFORCE WITH SOME VOLUNTEERS PAID WORKFORCE ONLY TRUSTEES
  • 21. 20 About the Voluntary and Community Sector VCOs are identified as having a number of specific advantages. These may include: • a strong focus on the needs of service users • knowledge and expertise to meet complex personal needs and tackle difficult social issues • an ability to be flexible and offer joined-up service delivery • the capacity to build users’ trust • the experience and independence to innovate. VCOs work can also provide a range of wider benefits: • involving local people to build community ownership • building the skills and experience of volunteers - especially the young • increasing trust within and across communities, thereby building social capital. The importance of building social capital is echoed within EEDA’s Economic Strategy for the East of England: “[that the way to] build social capital [is] by strengthening links between people within and between neighbourhoods, and promoting community leadership. This in turn allows people to contribute to economic prosperity” Taking the distribution of charities across the region we can observe that the more densely populated urban districts of the region have significantly fewer registered charities than rural districts. VCOs also help to improve public services by getting involved in service design, commissioning and evaluation. Watford YMCA provides housing, training, recreation and other services, as well as being proactive in community development. Recently an analysis was carried out using the 'Social Return on Investment' model10. This aimed to identify and measure the added value created by the organisation as a result of its housing intervention for people who are in need either because of social or behavioural problems. Using this model, it was estimated that for every £1 invested in the YMCA hostel operation, there was a return of £5.36 to the economy. This includes estimated social benefits such as savings to the public purse in reduced mental health costs, dealing with addictions etc. SNAPSHOT 1 - Watford YMCA and added value Speaking Up runs a project in Cambridgeshire which provides a forum for representatives of people with learning difficulties to engage with senior managers of services. The aim is to influence positive changes to these services in line with the wishes and needs of the people with learning disabilities who use the services. SNAPSHOT 2 - Speaking Up, Cambridge 10. Watford YMCA Social Housing Project SROI Report September 2005
  • 22. 21 About the Voluntary and Community Sector Chart 1: Number of registered charities by district within the East of England. Babergh Basildon, Billericay & Wickford Bedford Braintree Breckland Brentwood Broadland Broxbourne Cambridge City Castle Point Chelmsford Colchester Dacorum East Cambs East Herts Epping Forest Fenland Forest Heath Great Yarmouth Harlow Hertsmere Huntingdonshire Ipswich Kings Lynn & West Norfolk Luton Maldon Mid Beds Mid Suffolk North Herts North Norfolk Norwich Peterborough Rochford South Beds South Cambs Southend On Sea South Norfolk St Albans St Edmundsbury Stevenage Suffolk Coastal Tendring Three Rivers Thurrock Uttlesford Watford Waveney Welwyn Hatfield 600 500 400 300 200 100 0 83 379 375 316 234 425 254 183 117 189 109 171 459 256 540 63 208 435 454 321 490 447 323 126 233 484 228 469 319 362 94 581 258 151 172 351 155 323 149 363 454 286 211 586 364 339 205 371
  • 23. 22 About the Voluntary and Community Sector This is starkly illustrated by the fact that Luton, an area of significant deprivation and the most populous district in the region, has the least number of charities. Analysis of registered charities in the Eastern region Registered charities based in the Eastern region vary greatly in size, from a national wildlife charity with a voluntary income of more than £53 million, grant aided by a further £9 million, through to hundreds of tiny charities with less than £1,000 income per annum. Also within the region are 25 organisations that fall within the top 500 UK fundraising charities ranked by fundraising income. Of these, 11 operate internationally and 7 operate across England and Wales Nationally, 5% of organisations within the VCS control 95% of the total income. Based on this proportion, 700 registered charities in the Eastern region would have 95% of the total income, with the remaining 13,500 sharing the remaining 5%. 2.3 What do VCS organisations do? The sector is diverse in terms of: the areas in which it works; its activities and its users. The main fields of work are welfare, culture, health, education and learning, the environment, regeneration and social inclusion, community development, sustainability and campaigning. The predominant activity is the direct provision of services to users, although organisations are also strong in self-help and the provision of information and advice, training, and advocacy. Other organisations may benefit the public more generally through improving the environment. An increasing number of VCOs are involved in community enterprises, contributing additional value to the local economy. VCOs provide a wide range of services and/or activities for a wide range of beneficiaries - some examples are given opposite: Some organisations, particularly community groups, provide support to all people within a particular geographical area, while others focus on meeting the specific needs of particular beneficiary groups such as: Asylum seekers People in debt Black and minority ethnic community People in poor housing Carers People in residential care Children People on low incomes Disabled people People with HIV / AIDS Families Refugees Homeless people Substance users Lesbian, gay and bisexual people Travellers Lone parents Unemployed people Offenders and ex offenders Victims of crime Older people Young people COVER research into beneficiary groups shows the proportion of organisations whose activities cater for each group. As Chart 2 (see page 24) shows, the most frequently cited groups included are older people, families, children, people with disabilities, BME communities and young people.
  • 24. 23 About the Voluntary and Community Sector SUB-SECTOR EXAMPLE OF A VCO SUMMARY OF ACTIVITY Health and care Suffolk Carers Information, support and advocacy for family carers Social economy/enterprise Humberstone Networkers Identifies, enables and supports social firms and community businesses working with disadvantaged people Sports Cambridgeshire & Developing a wide range of Peterborough Active Sports sporting opportunities for Partnership young people Environmental sustainability British Trust for Conservation Activities include practical Volunteers (East) conservation projects and environmental education Housing Hastoe Housing Support Trust Provides support to housing associations, eg advice on sustainable housing Advice, information and Citizens Advice Eastern Region Support and networking for guidance citizens advice bureaux in the region Faith activity East of England Faiths Council A contact point and facilitator for faith groups in the region in making input to regional strategy and issues Social inclusion Voluntary Sector Refugee An advisary organisation that Network supports VCOs and groups working with asylum seekers and refugees Community development Bedfordshire Rural In-depth grass-roots work Communities Charity with communities and influencing local and regional policy through advocacy for rural issues Support to the VCS Dacorum Council for A range of information, Voluntary Service (CVS) training and support services for frontline VCOs BME representation Minority Ethnic Network Promote racial equality and Eastern Region (MENTER) advocate for the BME sector, contribute to infrastrusture building and community regeneration SNAPSHOT 3 - Examples of VCO activity in the Eastern region
  • 25. 24 About the Voluntary and Community Sector Chart 2: Beneficiary groups for which VCS organisations in the East of England cater 50% 40% 30% 20% 10% 0% Asylum Seekers Black& M inorityEthnic CarersChildrenDisabilityFam ilies Hom elessPeople Lesbian Gayand BisexualPeople Lone Parents Offenders/ex Offenders OlderPeople People earning low incom es People in debt People living in poorhousing People in residentialcare People w ith H IV /AIDSRefugees Substance UsersTravellers Unem ployed Victim sofcrim e Young People 19 45 36 47 47 49 25 19 27 20 50 36 18 24 23 17 18 19 16 34 17 43 2.4 Inclusiveness Some parts of the VCS have traditionally been regarded as having particular difficulties in accessing resources and other support, for example black and ethnic minority VCOs and those based in rural areas. Research carried out for MENTER, the network for black and minority ethnic voluntary organisations within the region, has produced interesting results: “The overall picture of the sector is one of many small organisations operating with very few staff, with a bias towards unpaid voluntary staff”. Given this picture, it would be assumed that very few organisations were registered either with the Charity Commission or Companies’ House. The evidence, however, suggests that this is not the case. More than half of the organisations responding to the MENTER research identified themselves as being registered with an appropriate body.This could be regarded as a way for organisations to achieve status and legitimacy within their respective communities. COVER research: Snapshot 2000 Research undertaken for MENTER11 gives us the following statistics: Funding: Funding is secured from a variety of sources, with a significant proportion, 61 percent, being from local authorities. Donations and sponsorship, and self-funding follow at 38 percent each. This is a significantly different funding profile from the wider VCS. • 9 percent have an annual income of less than £1,000 • 16 percent have an annual income of less than £5,000 • 30 percent have an income between £5,000 and £50,000 • 24 percent have an income more than £50,000 SNAPSHOT 4 - The BME sector in the EAST of ENGLAND - funding and activities 11. Mapping the black and minority ethnic voluntary sector in the East of England, BMG for MENTER (2004)
  • 26. 25 About the Voluntary and Community Sector Chart 3 shows that the most common activity area is community development followed by education and women’s activities. In rural areas, which constitute a large proportion of this region, sustainability of VCOs is a particular challenge due to limited infrastructure, including transport, and is often very dependent on the sustainability of local community resources such as village halls and churches or other places of worship which are put to a range of uses to benefit the community. Research by Rural Action East12, who take a lead on highlighting rural community development issues in the region, emphasised that “village halls are a vital asset for the regeneration and revitalisation of rural communities. Their availability and the range of use made of them by communities covers a wide range of activities. Changes to legislation, increasing demand for both the range and intensity of hall use and general deterioration through age and lack of previous investment, have created the need for a major capital programme of work on the network of village halls. Without a major change to the awarding criteria of funding programmes and a significant increase to the budgets available, village halls in the eastern region will fail to meet the expectations of government and their communities, and indeed will deteriorate and fail to maintain their existing level of use by communities. “ Chart 3: Activity areas in which BME organisations in the region engage 80% 60% 40% 20% 0 Arts Business/econom ic Capacitybuilding Com m unitydevelopm ent Crim inaljusticeDisabilityEducation Elderly Em ploym ent Envirom ental Health Gay/lesbian M en M entalhealth Racialdiscrim ination Refugee /asylum seekersReligiousSocialcare Sports/recreationTrainingW om en Youth Other 22 10 30 70 22 24 61 40 31 12 47 7 43 30 43 30 34 39 32 49 58 49 7 12. Funding for Village Halls in the East of England, Rural Action East (2003)
  • 27. 26 3.1 What is VCS infrastructure and why is it important? For private sector businesses, there is a wide range of bodies, some publicly funded, which aim to provide support. For example, the Small Business Service offers support to small enterprises in setting up, advice on business planning, taxation and all aspects of running a business. Similarly, there are a range of organisations and initiatives operating at the national, regional and local level which exist to provide support to frontline VCOs. Within every region these include; • Generic infrastructure - at the local level there are Councils for Voluntary Service (CVS) and Rural Community Councils (RCCs), often known as local development agencies. At the regional level, there is a voluntary sector regional network - in the case of the East of England this is COVER • Sub sectoral or specialist infrastructure - for example, regional or sub regional networks covering specific issues such as health and community care, funding or performance improvement or local volunteer centres or bureaux (in some areas these are part of the CVS) COVER also runs networks to bring together organisations from specific sub-sectors13. As many VCOs are also registered as companies, some of the support services, such as the Business Link network, may also have relevance to them. In addition, support is provided to frontline VCOs working in the region by national VCOs which have local members, for example the National Association of Citizens Advice Bureaux, and by sub sectoral infrastructure or support organisations for example, Alcohol Concern. In addition, some frontline VCOs assist their peers through a variety of means including mentoring and support networks. The government acknowledges the importance of this VCS infrastructure. It recognises that the services and activities it provides: helps VCOs operate more effectively; gives them a voice in regional and local policy development; and facilitates partnership working with the statutory sector. Regionally and locally, VCS infrastructure provides a range of services and activities covering a range of issues including: • Funding and finance: eg helping VCOs access funding and understand the contracting process; find out about funding sources and make funding applications • Encouraging volunteering: eg promoting and brokering volunteering • Management and governance: eg providing information, advice and training on governance issues, and helping VCOs implement appropriate quality standards Section 3. Support for the sector - VCS infrastructure 13. See COVER website for details of networks currently active
  • 28. 27 Support for the sector - VCS infrastructure • Influencing policy and practice: eg preparing collective VCS responses to policy proposals based on consultation • Partnership development: eg representing the VCS on partnership boards • Identifying and filling gaps: eg developing new VCS services to meet the needs of VCOs and the communities they serve • Some provide services directly to the statutory sector : eg developing and running training or other schemes on their behalf, or distributing funds for them. Stevenage Council for Voluntary Service is a generic infrastructure organisation with a membership of more than 100 local organisations. It has eight staff who work the equivalent of just under four and a half full time post hours per week. Within this staffing complement the CVS operates community accountancy and transport projects, the latter of which is underpinned by 15 volunteer drivers. The CVS itself is supported by a further 16 volunteers. The core work of the CVS, under each of the National Association of Councils for Voluntary Service headings, is outlined below: Development - Identifying need by research through questionnaires and member/public/user consultation. Personal support offered to a broad range of groups, including start-up information, support to new and emerging groups, ongoing work with existing groups to effect change. Services - Information provision in the following areas: legal advice; training; funding sources; charity law; equal opportunities; financial and organisational management and governance. Through the mediums of: newsletters; e-briefings; telephone and face to face meetings. Direct services also include stationery purchase, photocopying, payroll and equipment hire. Enquiries to Stevenage CVS rose from 2,319 in the year ending 2004, to 3,250 in the financial year ending March 2005. Liaison - Facilitating local meetings, and coordinating the information flow between statutory agencies and the VCS. A practical example of this was supporting parents to develop a social club for teenagers with disabilities, which now continues under the auspices of the local youth service. Representation - Providing feedback on statutory sector policy issues, such as social inclusion, economic regeneration, and voluntary sector strategies. Strategy development - Engaging with local partnerships, including 14 local committees and steering groups, as well as being a member of 11 consortia and organisations in Stevenage and Hertfordshire. SNAPSHOT 5 - Stevenage CVS 3.2 Local VCS infrastructure in the region There are a significant number of organisations supporting the VCS at the local level in the region14: • Six county-wide bodies focus on supporting the needs of rural communities (RCCs) 14. For full details of these see the COVER website
  • 29. 28 Support for the sector - VCS infrastructure • Forty infrastructure organisations (CVSs) combine a generic and volunteering support function • Five organisations concentrate on supporting volunteering organisations (volunteer bureaux or volunteer centres). In spite of this large number of organisations, provision in the region is still patchy. Although no local area has absolutely no support, some have a very minimal service eg two days a week CVS run from a library in Rayleigh & Rochford in Essex. Where full time services do exist, the resources available to these organisations vary widely. To give two examples: • An organisation operating over one district and offering volunteering support and brokerage to its constituency receives total funding of only £30,000 per annum. • A county organisation providing a wide range of support to its members receives £1.4 million per annum from a range of sources. This means that some infrastructure organisations operate on a shoestring, are open for business on a very part-time basis, and offer only a limited range of services, while others have numerous staff offering a wide range of services. Thus there is considerable variation in the support frontline organisations within the East of England region are able to access and we believe this needs to be addressed. In all, 43 of 52 generic infrastructure organisations surveyed in the region, including RCCs, CVSs and independent volunteer centres, received approximately £15 million in funding per annum. This comes from a variety of sources eg local authorities, grant making foundations (trusts), the health service and Learning and Skills Councils. Chart 4: Funding providers and amounts of funding for infrastructure organisations in the region £3M £2M £1M 0 Com m unityPublic & PatientInvolvem ent County Earned Incom e European SocialFund Donations Health Agencies Investm ent LocalAuthorities Learning and SkillsCouncil N ational ParentBodies Regional Tow n/Parish Trusts Other 1,125,939 576,922 2,537,425 832,434 119,090 652,577 162,890 1,826,186 736,774 1,634,910 1,150 462,166 18,793 3,106,540 822,432 SOURCE: COVER analysis of 2004 annual accounts of 43 funding organisations
  • 30. 29 Support for the sector - VCS infrastructure In addition, a Home Office grant supports COVER’s regional voluntary sector networks. This, and the Single Regeneration Budget, EEDA funding through the ‘single pot’ programme, lottery grants and other funding, have all contributed to increased capacity and delivery within VCS infrastructure. 3.3 The future A number of changes in the funding environment are likely to impact both positively and negatively on VCS infrastructure or support for organisations and structures in the region. The end of SRB funding may have a negative impact. However, some developments are very positive: The Big Lottery Fund has recently announced, as part of its first wave of funding programmes covering 2005-09, a £155 million fund which will support VCS infrastructure. EEDA’s Investing in Communities Programme will also contribute resources to developing VCS infrastructure Of specific relevance is ChangeUp, a major Home Office programme investing in the development of VCS infrastructure, which is channelling additional resources into the region - (see page 30). This presents a real opportunity for VCS infrastructure organisations to improve the effectiveness of support provision in the region. The themes identified in ChangeUp are highly relevant to the VCS in the region and have been used to underpin the analysis in Part 2 of this report. COVER is the lead accountable body for the VCS in the region, playing an important role in coordinating developments16. About EEDA’s Investing in Communities programme15 The Investing in Communities programme relies on a sound knowledge of community needs to ensure that public, private, community and voluntary organisations work together to tackle deprivation and inequality in a focused way. • EEDA will use its influence to ensure the development of well-founded community regeneration plans which, by March 2008: address the needs of deprived communities; have the buy-in of strategic, implementation and beneficiary stakeholders and which make a significant contribution to the region’s Local Area Agreement goals for economic development. • EEDA will agree long-term assistance programmes in each sub-region, to drive forward the delivery of the economic dimensions of community regeneration plans. • EEDA will develop several regional foundation plans, with partners, to improve the capacity of those involved in delivering the community regeneration plans, for example, in gathering and interpreting regional intelligence, building up community leadership skills, engaging hard to reach groups and encouraging social enterprise. • EEDA will ensure that opportunities for disadvantaged groups are linked into all its plans and programmes. Source: www.eeda.org.uk 15. See also www.investingincommunities.org.uk 16. For more information about current ChangeUp initiatives in the region see the COVER website
  • 31. 30 Support for the sector - VCS infrastructure What is ChangeUp?17 ChangeUp is a Home Office strategy for capacity building and infrastructure development in the VCS. Its aim is that by 2014 the needs of frontline VCOs will be met by infrastructure support which is: • available nationwide • structured for maximum efficiency • offering excellent provision • accessible to all • truly reflecting and promoting diversity • sustainably funded. £80 million has been invested in implementing the strategy from 2003 - 2006 at the national, regional, sub-regional and local levels. The bulk of the £80 million is supporting sub-regional and local initiatives benefiting frontline VCOs. The work in the Eastern region is overseen by GO-East. Some of the funding available for national projects is supporting the development of national hubs of expertise: The Finance Hub - provides guidance on procurement, fundraising and social enterprise for VCS organisations The Governance Hub - provides information to help trustees of VCS organisations build governance capacity and enhance their skills The ICT Hub - will develop a co-ordinated framework of ICT guidance, good practice, advice and support for VCOs, accessible at a local level The Performance Improvement Hub - will develop guidance for local, sub-regional, regional and national infrastructure organisations to help improve the quality and quantity of support they can offer to VCOs The Volunteering Hub - will prepare a range of resources for anyone who works with or manages volunteers, as well as to those who want to volunteer The Workforce Development Hub - will prepare information and news on skills development and good employment practice for VCOs. Part 2 of this report provides additional information on the work of these hubs and their relevance to the VCS in the East of England. 17. For further information and links to all the hub websites see www.communities.homeoffice.gov.uk/activecomms/sup-vcs/changeup/
  • 32. 31 4.1 Introduction There are many environmental factors eg political, social, economic and technological, which will have an impact on the future of VCOs across the country, including organisations in the East of England. Consideration of these factors will help VCS organisations to shape appropriate strategies for their future (see Appendix 3) and will also help statutory bodies and other stakeholders wishing to work with the VCS to develop appropriate strategies to further their objectives. Our focus here is on general implications for the VCS and, therefore, this document does not address challenges for specific sub-sectors, eg implications of changes in the structure of the NHS for those VCS organisations working in health and social care. 4.2 Key external factors identified At the national level, the National Council for Voluntary Organisation’s annual Third Sector Foresight Analysis18 identifies key factors likely to impact on VCS organisations. The 2005 publication identified the following key issues and trends: Section 4. Environmental analysis NCVO Third Sector Foresight Analysis - some key issues and trends The voluntary sector economy • Gloomy post-election forecasts/expectations for the economy - but continued expectation of low inflation and interest rates • Voluntary sector income increasingly dominated by statutory sources • Earned income increasing at the expense of voluntary income • Rationalisation and phasing out of funding streams • Continuing investment in public services, especially health and education • Continuing efforts to remove transactional costs and administrative blockages in funding relationships • Public perception that taxes will rise and disposable incomes fall, combined with fragile consumer confidence • Rising company profits and continued emergence of the mass affluent as an important consumer group Individuals, communities and social cohesion • International context and globalisation, plus international population movements • Hardening of political positions • Changing attitudes towards immigration • Rise in violent crime and fear of crime • Public policies around civil renewal and community involvement in the design and delivery of public services • Lack of trust in political institutions • Media coverage • Expansion of ICT facilitating new forms of engagement 18. Voluntary Sector Strategic Analysis 2005/6- Third Sector Foresight (NCVO 2005)
  • 33. 32 Environmental analysis In July 2005 scenario planning workshops held by COVER in the East of England identified the following factors as particularly important in the region: • National policy initiatives and legislative change (see section 4.3 for further details) • The emphasis on local planning and the increased role that voluntary organisations are likely to be able to play in the process, eg LAAs, LSPs • Changing demographics with more people who are older, frailer and more diverse • Rural deprivation worsening, eg pressure on budgets leading to centralisation of hospital services • Growing expectations of a work / life balance - backed up by legislation • An increased emphasis on the accessibility and efficient delivery of publicly funded services, regardless of who is providing them • Growth areas and physical infrastructure development • Funding and finance* • The growing professionalisation of the sector - requiring increased investment in training and staff development* • A lack of volunteers* • The digital divide- the increasing relative isolation of those not using web based ICT* * Part 2 of this report explores these issues in more detail Public services and community governance • Increasing demands for services and rising expectations • Continued investment in public services, but financial pressure looms • Desire to reduce size of government and contract with private and voluntary sectors to deliver services • Drives to involve users in design, planning and delivery of services • Drives for efficiency savings • Promotion of choice as a mechanism for improving quality • Creation of a new legal form - Community Interest Companies • Government interest in community engagement and governance • Increasing freedom for high performing local authorities eg through Local Area Agreements Trust, accountability and transparency • Public perception that institutions are not accountable or transparent • Public pursuit of zero risk at the expense of freedoms • Unwillingness to trust professionals and their judgement • Consumer interest in greater transparency • The Charities’ Bill and media interest in public benefit • Regulatory reform - where self-regulation is perceived to be failing • Focus on governance and leadership • Blame culture and the fear of failure • Public demand for the instant availability of information For further details, updates, and to join the Foresight Network see: www.ncvo-vol.org.uk/3s4
  • 34. 33 Environmental analysis 4.3 National policy initiatives and legislative change A number of new national policy initiatives and proposals for legislative change are affecting the environment in which voluntary organisations operate, for example: • Compact Plus - and the appointment of a Compact Commissioner to ensure that the Compact, which aims to secure more significant sustained partnership between the VCS and the statutory sector is implemented (see box on page 34). • Civil renewal and community capacity building - the development by the Home Office of a community capacity building strategy, including efforts to promote strong community anchor organisations and the Together We Can initiative. This includes the Civic Pioneer network which is a network of local authorities which have signed-up to working with communities to help them have more influence on the way local services are designed and delivered • Sustainable communities - a £38 billion programme of action for economic, social and environmental development in both urban and rural areas in England. Four areas have been identified as priorities for regeneration and growth: the Thames Gateway; Ashford in Kent; London-Stansted-Cambridge-Peterborough and the Milton Keynes/South Midlands area • FutureBuilders - a new £215 million fund which aims to increase the role that VCOs play in the delivery of public services in key government areas, for example health and social care and community cohesion. Investment packages will normally combine a loan, a grant and capacity building investment. • ChangeUp - a major programme of government investment designed to ensure that VCOs have the sort of infrastructure support they need to promote their future health and development. A new independent body, Capacity Builders, will be launched in April 2006 to oversee the programme (see Section 3 for further information). • Strategy Unit report / Charities Bill - some of the raft of recommendations contained in the Strategy Unit report Private Action, Public Benefit have already been implemented, for example: - the development of a new legal structure, designed to encourage social enterprise development - a recognition by the Charity Commission that some sports clubs are charitable - the establishment of a sector led self-regulatory scheme for fundraising charities. Other recommendations need legislation and a Charities Bill is currently progressing through parliament. • The Russell Commission - has developed a strategy which aims to engage one million new young people into volunteering and community action over the next five years. It is hoped that £150m will be available to implement the strategy. £50 million has already been pledged by government, which has also committed to match, pound for pound, money raised from the private sector.
  • 35. 34 Environmental analysis 4.4 Themes in government support The initiatives described in the last section demonstrate a series of key themes in government support for the VCS: Increased VCS delivery of public services - Government wants to encourage increased VCS delivery of public services because it believes that the contracting out of public services promotes both cost effectiveness and the responsiveness of services to individual needs. More generally, it recognises the added value that the VCS can bring to public service delivery. Compact development The Compact, published in 1998, is a national agreement between the VCS and government to improve their relationship for mutual advantage. It is underpinned by a number of codes on: • Black & minority ethnic groups • Community groups • Consultation and policy appraisal • Funding and procurement • Volunteering These codes each contain commitments made by both government and the VCS. For example, the Funding and Procurement Code contains a government commitment to full cost recovery and a VCS commitment to be open, transparent and accountable. Since local relationships between the VCS and the statutory sector are crucially important to the sector’s health and vitality, guidance has been published on the development of local compacts, and work has been undertaken to promote their adoption at the local level. In an effort to increase awareness and understanding of the Compact, and to promote adherence to its principles and commitments, the Home Office developed a series of proposals called Compact Plus, including the appointment of a Compact Commissioner who would support organisations in realising these commitments and adjudicate on disagreements. It is also examining options for a kite mark or accreditation scheme for the VCS and government on Compact compliance. The Compact is a tool that can be used to improve partnership working between the VCS and the statutory sector across the region. However, evidence of Compact adoption and compliance at the local level is mixed. Most local authority areas have developed a Compact and several community strategies have identified the promotion of the Compact as a priority. However, there is some evidence that while local Compacts are being developed they are not being effectively implemented. For example, consultation with local development agencies for COVER research examining the engagement of the VCS in Local Strategic Partnerships suggests that the values and principles of the Compact are not being observed. At the regional level GO-East is carrying out a programme of work examining how it is implementing Compact principles and commitments. It is also working with the regional VCS to strengthen the development of Compact working across the region.
  • 36. 35 Environmental analysis Volunteering and active citizenship - Government considers that communities are best placed to identify their own problems and to develop feasible solutions, and it seeks to encourage and support communities in this work. It also recognises that volunteering is a vitally important ingredient of a strong, accountable VCS. Improving the relationship between the VCS and the statutory sector - Government is seeking to improve the relationship between the VCS and the statutory sector, eg by improving funding and consultation practice and by promoting support for BME and community groups. Encouraging social enterprise - Government seeks to encourage social enterprise in recognition of the role that the VCS can play in public service delivery, ie generating income from this enterprise activity, and because it acknowledges that if the sector is to continue to grow it needs to generate more of its own income in a way which is sustainable. Regeneration - Government acknowledges the important role that the VCS can play in urban and rural regeneration, both as a provider of employment and training schemes, as an employer in its own right, and because of the general contribution its services and activities make to sustaining communities at the neighbourhood level. Promoting VCS efficiency and effectiveness - Government seeks to help the VCS become more efficient and effective by supporting the development of VCS infrastructure (see Section 3). Encouraging charitable giving - Recognising the contribution that it makes to society, government wants to promote the development of a strong independent VCS. It therefore has an agenda to encourage charitable giving. An underlying theme is the growing role of the VCS as a partner of the public sector. This partnership takes a number of forms. VCOs may deliver public services, or may provide a mechanism for involving local communities and communities of interest in the design and delivery of public services. VCOs have the expertise to help with needs assessment and to comment on the appropriateness and viability of government policy proposals, often reaching the hard to reach. Increasingly government recognises that the social networks they create build community cohesion, creating healthier and more vibrant communities. This increasing emphasis on partnership working with statutory bodies presents a number of challenges for VCOs: • The maintenance of independence and a clear focus on the VCOs’ mission, rather than the statutory sector agenda • The need to demonstrate accountability and appropriate stakeholder involvement, particularly the involvement of service users • The need to understand and justify the full costs of service delivery, including capital and other investment costs required to maintain and develop services • Demonstrating cost effectiveness and value added, particularly in comparison with other sectors • Dealing with additional bureaucracy, eg demonstrating compliance with externally imposed quality standards and other regulatory requirements.
  • 37. 36 Environmental analysis 4.5 Environmental analysis of sub-sectors As noted at the start of this environmental analysis, it is beyond the scope of this document to cover specific issues affecting particular sub-sectors of the VCS, eg health. VCS organisations need to consider social, political, economic and technological factors specific to their own sub- sector - see snapshot 6. In response to COVER’s consultation paper as part of the Clear vision: Clear thinking project, the East of England Regional Public Health Group noted that approximately 55% of the paid VCS workforce works in health or social care settings. They also stressed the crucial role of the VCS as an advocate and co-ordinator of the patient/community voice. This is particularly important in the context of government policy around commissioning a patient-led NHS. Clear recognition was given to the VCS as a source of expertise in the inclusion and inequalities agenda, running hospices, adult mental health and learning disabilities services, Patient and Public Involvement, the Expert Patient Programme and as a key contributor to the development and maintenance of social capital which is increasingly being linked to improved health outcomes. The VCS provides a valued channel of communication to and from vulnerable groups often regarded as hard to reach by the statutory sector. For further information see Working Together, Better Together: Voluntary and Community Sector engaging in the Public Health Agenda in the East of England, COVER 2005 SNAPSHOT 6 - Health: an example of issues in a sub-sector of the VCS
  • 38. 37 5.1 Key attributes for VCO survival and development In order to survive and prosper, all organisations, regardless of which sector they are in, need the skills of innovators, entrepreneurs and managers, but in different proportions depending on where they are in their organisational lifecycle and what they are trying to achieve. As in the private sector, not all VCOs will survive and some will close down for a variety of reasons, eg changing needs of beneficiaries or changing priorities of funders. Given the national context outlined above, COVER’s scenario planning workshops identified some of the key attributes VCOs will need to demonstrate if they are to succeed in the future19. Organisations need to consider what these attributes mean for them and how to address this, eg do they need to develop new skills sets. If so, where can they access funding to help them with this. 5.2 Finding a way forward Part 2 of this document examines how key environmental factors are likely to impact on the future health and vitality of VCOs in the region and the communities they serve, under the following headings: • Governance • Financing • Workforce development • Volunteering • ICT • Performance improvement Section 5. Surviving the future - key attributes for VCO survival 19. This is based on the McKinseys 7 'S' framework of organisational survival attributes: shared values, strategy/sustainability, structure, staff, systems, skills, style VCO organisational attributes needed for future survival • Independence, creativity, working together, encouraging beneficiary involvement • Increased entrepreneurship, partnership development, sharing of generic services. Continued quality development in all areas • Greater organisational flexibility to meet changing needs, creating and maintaining links with other sectors • Increasing qualifications, skills and experience for staff and volunteers, including trustees. Greater reliance on volunteers • Emphasis on developing skills, in particular addressing skills shortages in leadership, management, marketing, communication, financing and fundraising • Economies of scale wherever possible • Remaining democratic and user led. Source: COVER scenario planning workshops 2005
  • 39. 38 Surviving the future - key attributes for VCO survival Under each of these headings is: • A summary of the current situation • A summary of key issues for the future, eg political factors affecting voluntary sector workforce development • Specific recommendations are made in each section addressed to: - Frontline VCOs - VCS infrastructure organisations - Funders and policy makers Extensive consultation was carried out in developing this agenda and we are confident that there is a strong consensus for this way forward. COVER will play an important role in driving this forward, working closely with frontline VCOs, other infrastructure organisations, and funders and policy makers in the region. It is clear from the analysis in each section and recommendations under each theme that training and development of staff and volunteers, including trustees, is an overriding issue to be addressed. This is made particularly challenging in an environment where short term funding is still the norm, and full cost recovery is not always achievable. 5.3 Recommendations It is recommended that all with an interest in the future of the VCS take note of the recommendations set out in Part 2. However, there are also some cross-cutting issues relevant to all themes which are significant enough to merit some general recommendations as follows: RECOMMENDATIONS FOR VCS INFRASTRUCTURE ORGANISATIONS, FUNDERS AND POLICY MAKERS 1 The issue of coverage throughout the region needs to be addressed. Current provision is patchy, despite a large number of different organisations being involved in the provision of support there are concerns that this is not sustainable, and resources could be applied more effectively, eg economies of scale or greater quality could be achieved through more efficient dissemination of good practice 2 In taking forward this agenda of support for VCOs, the varied needs of different types of organisations needs to be take into account, including the needs of community groups, rural organisations, BME and faith based communities. 3 There is an ongoing challenge to support the sector in finding ways to clearly demonstrate the added value of the VCS in the region. 4 Recognise the importance of physical infrastructure in community development and VCO activities and support the need for capital and revenue investment in vital resources such as village halls in rural areas.
  • 40. 39 Part 2 An agenda for the future development of the VCS in the East of England Section 6 Governance .................................................................................................................. 40 Section 7 Financing ...................................................................................................................... 43 Section 8 Workforce Development ............................................................................................ 48 Section 9 Volunteering ................................................................................................................ 56 Section 10 Information and Communications Technology (ICT) ................................................ 64 Section 11 Performance Improvement ........................................................................................ 70
  • 41. 40 6.1 The current situation What is governance in the VCS? A definition given in the new Good Governance Code21 is that: “Governance is the systems and processes concerned with ensuring the overall direction, effectiveness, supervision and accountability of an organisation.” In the VCS, trustees take ultimate responsibility for the governance of their organisations, although they may delegate specific responsibilities to members of staff, and also work with volunteers, services users and other stakeholders. Trustees in charitable organisations cannot receive remuneration, except in exceptional circumstances, and so are a particular kind of volunteer. If the organisation is a charitable company limited by guarantee then the trustees will also be the directors of the company. The term governance is likely to be more familiar to larger organisations, but it is relevant to organisations of all sizes, right down to the very smallest. For example, as the Governance Code notes, governance in a small community group might be about getting things in place, making sure it is clear who is dong what, and making sure that all concerned are working together to a common cause. Those involved may refer to themselves as committee members rather than trustees, even where their legal status is in fact that of a trustee. In larger organisations, the chief executive will play a key role in governance, acting as the bridge between staff and trustees. At the national level, a range of organisations are involved in offering support on governance to VCOs. As part of ChangeUp, some of these have come together to form the core group of the governance hub of expertise: • NCVO • Acevo (Association of Chief Executives of Voluntary Organisations) • Charity Trustee Networks • BTEG (Black Training and Enterprise Group) • Volunteering England • Bassac (British Association of Settlements and Social Action Centres) The hub’s initial aims are to increase the supply of trustees and board members, especially from diverse communities, to enhance the knowledge and skills of trustees and board members, and to increase the governance capacity of organisations to deliver their missions. An underlying principle is that there is no one approach to good governance - appropriate governance varies with the characteristics of organisations. Regulatory bodies, including the Charity Commission and Companies House, also offer information and some advice on aspects of governance. For example, the Charity Commission produces a publication called The Responsibilities of Trustees. At the local level, including in the East of England, most CVS offer some help with governance Section 6 Governance20 20. See also Section 9 Volunteering - trustees are also volunteers 21. Good Governance: A Code for the Voluntary and Community Sector (National Hub of Expertise in Governance June 2005). Downloadable from www.governancehub.org.uk. Print copies also available at no charge.
  • 42. 41 Governance issues, although the extent of this varies greatly from one area to another. 6.2 The future Drivers for change impacting on the VCS generally will affect governance, since governance is about overall responsibility for everything a VCO does. The issues highlighted here are only those which are most directly related to governance: • Increased interest in good governance in the public and private sectors is likely to impact on the governance standards expected of VCOs, for example: the expectation that trustee boards should operate more strategically, and periodically assess their own effectiveness, is likely to become common • A growth in VCS delivery of public services will increase the pressure on boards to achieve greater clarity about mission and finances • Continued growth in public expectations of transparency and accountability, especially where public funding is involved, will result in trustees giving greater attention to how they report on their organisations' activities and achievements • The new Charities Bill will introduce changes in charity law and regulation which trustees will need to familiarise themselves with • VCOs will have more structural options to consider in the future, for example the Community Interest Company, a new legal structure targeted at social enterprises • The promotion of social enterprise activity by government and others could encourage more VCOs to engage in trading activities which require different governance arrangements, ie the establishment of a trading company, and/or different governance skills, ie harder business planning including costing skills - see Section 7 on Financing • As more VCOs deliver more public services the reputation and financial risks associated with trusteeship will become greater, and more time and attention will need to be dedicated to risk assessment and management • Media interest in the sector is becoming more intense, as a result risk to the organisation’s reputation has become a bigger issue • Recruitment and retention of trustees is likely to become more difficult as people work longer and as the challenges associated with trusteeship increase • As it becomes more difficult to recruit trustees with the right skills VCOs will need to think more creatively about what motivates people to become trustees and how to make the experience rewarding • In many VCOs trustees take a lead in managing relationships with key stakeholders, as cross sectoral partnership working becomes more common these relationships are becoming more complex, and there are more of them • As the trustee role becomes more demanding, trustees will expect better induction, support and training for their role • As the trustee role becomes more demanding trustees, and those who advise and train them, are likely to seek more support, particularly from their peers. ICT developments are likely to facilitate the development of communities of practice and communities of interest • ICT developments may improve communication between staff and trustees, increasing levels of involvement and the speed of decision making • Virtual meetings, eg video or telephone conferencing, will become easier and cheaper. This is a particularly beneficial development for VCOs operating over a large geographical area • But both of the above could increase the excluding effects of the digital divide.