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The 2015 project - Support for charities


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The presentation covers the fourth of NCVO's 2015 project: Support for charities

It explores three topics - funding, giving and charity regulation.

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The 2015 project - Support for charities

  1. 1. Support for charities How can funding, giving and charity regulation be made to work better for the voluntary sector
  2. 2. This presentation covers the fourth of NCVO’s 2015 Project: Support for charities. It explores three topics – funding, giving and charity regulation. The 2015 Project aims to stimulate discussion about what role charities can, and should, have in a number of areas. The feedback we receive will form the basis of NCVO’s work ahead of the 2015 election.
  3. 3. The funding environment A lack of economic growth has squeezed incomes, and put pressure on household incomes. The spending environment for government and local authority departments are also increasingly tight. With rising demand, rising costs and falling income, many charities are under real pressure. Source: BBC News
  4. 4. Increased demand In addition to a reduction in income, many organisations have also experienced an increased demand for services. (Food banks) Source: Oxfam Charities will need to meet these twin challenges – by generating additional income and through better use of resources to meet demand – in order to be sustainable in the current funding environment.
  5. 5. Grants and contracts All political parties appear to support voluntary organisations delivering more public services. This could provide opportunities for growth in earned income. But it will require a wider conversation on the appropriate balance between grants and contracts. The voluntary sector has seen a growth in earned income: • In 2000/1, earned income as a proportion of the sector’s income was 39% • In 2007/8 it was 49.7% • By 2010/11 this had risen to 55.7%
  6. 6. The growth of social investment Source: Guardian Social investment is another factor to consider when looking at the funding environment. It is difficult to predict what the availability of investment for the voluntary sector will be in the future, and to determine the number of organisations that may benefit.
  7. 7. Giving levels remain fairly stagnant Median and mean amounts given per donor per month, 2004/05 – 2011/12
  8. 8. Technology How are charities looking to attract new donations? The growth of technology has made giving easier and faster for people to give. - Online sponsorship (Just Giving, Virgin Money) - Social media campaigns (Movember) - Charity gifts (Oxfam Unwrapped)
  9. 9. Education in giving However, an ageing population means the sector has to take steps to engage more young people in charity, encouraging them to give time and/or money to the organisations and causes they support. One response may be to integrate discussions around giving and charity into education. Source: Guardian
  10. 10. The way charities are regulated According to charity law charities must have exclusively charitable purposes, they must always benefit the public and all activities and resources must go towards furthering these purposes. Source: Guardian The Charities Act sets out the main legal framework for charities in England and Wales– it is then the role of the Charity Commission to register and regulate charities.
  11. 11. Campaigning Photo: Citizens Advice A charity can campaign to further its charitable purpose and the needs of its beneficiaries. Campaigning and political activity can be legitimate and valuable activities for charities to undertake. However a charity cannot exist for a political purpose. This means that political campaigning must be undertaken by a charity only in the context of supporting the delivery of its charitable purposes.
  12. 12. Trust in institutions – July 2011 Haven't heard of Very little Not much Quite a lot -5% -12% -9% -24% -9% -25% -12% -27% -9% -30% -10% -28% -12% -31% -10% -21% -24% -25% -17% -35% -16% -41% -31% -28% -21% -39% -32% -37% -33% -33% -30% -42% -27% -40% -43% -35% -12% -20% -44% -36% -44% -34% -48% -35% -42% -32% -57% -29% The Armed Forces The NHS Charities The Police Schools Small businesses The BBC Scouts and Guides The Royal Family The Royal Mail TV and radio stations The Church Supermarkets Legal system Trade Unions Local Authorities Civil Service Banks The Fundraising Standards Board (FRSB) Government Newspapers Insurance companies Multinational companies Political parties -100% Not sure -80% -60% -40% -20% A great deal 39% 36% 51% 11% 51% 8% 46% 10% 47% 8% 48% 4% 41% 10% 41% 10% 32% 10% 36% 6% 33% 2% 25% 7% 30% 2% 22% 3% 19% 4% 20% 2% 19% 2% 16% 2% 13% 2% 13% 2% 13% 1% 10% 1% 9% 1% 4%1% 0% 20% 40% 60% 80% 100% “Below is a list of public bodies and institutions. Please indicate, by ticking in the appropriate column, how much trust you have in each of the bodies” Source: Charity Awareness Monitor, Jul 11,
  13. 13. Public trust in charities is high The accountability of charities is one of the pillars that uphold the high levels of public trust in voluntary organisations. Source: Telegraph Transparency, integrity and honesty are vital for the sector to maintain these high levels of public trust and support for their organisations. In order to maintain these high levels of support and trust in the charity brand, organisations will need to continue to further their levels of transparency and integrity.
  14. 14. Getting our houses in order There seems to be a narrative in the political and public spheres for charities to ‘get their houses in order’ – to ensure that they are as transparent, accountable and responsible as possible. Source: Telegraph More transparency about how our organisations are run can only serve to improve the levels of public trust and support for the organisations they donate time, and money, to.
  15. 15. So what does this all mean? Some food for thought. What does the voluntary sector need to do so it is more sustainable in the years ahead? What role should social investment play in funding the voluntary sector? What can voluntary organisations do to attract a new generation of donors? How can charities ensure they are as transparent and accountable as possible? How can the sector best promote the legitimacy and importance of its campaigning role?
  16. 16. What next? If you have 2 minutes - We’d love to hear your ideas in relation to these big debates – contact If you have 10 minutes – Please read our discussion papers on each topic, and respond to the questions. Funding • How can we ensure a sustainable funding environment for charities? Giving • How can we increase giving to charities? Charity Regulation • How does charity law and regulation currently work for the voluntary sector, and what does the future hold?
  17. 17. References Just Giving - The Pennies Foundation NCVO Almanac – Giving NCVO Almanac – Funding NCVO Almanac – Income Charities Act 2011 - The Charity Commission – The Transparency of lobbying, non-party campaigning and trade union administration bill - NCVO amendment suggestions to Lobbying Bill