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2010 07 The Crisis and the Third Sector: An Opportunity for Social Transformation


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2010 07 The Crisis and the Third Sector: An Opportunity for Social Transformation

  1. 1. The Crisis and the Third Sector: es An Opportunity for Social cersecto Transformation Pau Vid l and L i Grabulosa P Vidal d Laia G b l ww.terc 8th July 2010 ISTR – 9th International Conferenceww
  2. 2. Index of contents 1. 1 The context of crisis: A new stage for CSOs 2. The ways in which CSOs are vulnerable 3. The impact of the crisis per type of CSOs 4. A ti 4 Actions to undertake to confront the crisis t d t k t f t th i i 5. The other side of the crisis 2
  3. 3. Observatorio del Tercer Sector Observatorio del Tercer Sector is an independent and nonprofit research center specialized in the third sector. Its aim i to deepen and i i is d d increase the knowledge on the sector h k l d h and to work for the improvement of the nonprofit organizations’ management. Web: http://www observatoritercersector org E-mail: 3
  4. 4. Observatorio del Tercer Sector (II) The Values of the organization Social Transformation. We work for the strengthen of the sector, as we believe it is an active agent for social change. Engagement. We work together with the third sector, within the sector, with the participation and conformity of its organizations. Independence. Independent in order to guarantee quality and opinion. Quality. We work hard to achieve the maximum professional competence, offering useful results with quality. Learning. We are an organization that learns from its own experience. Trust. We assume a commitment with collaboration and knowledge sharing. Transparency. We are open with regard to information and communication about the organization. 4
  5. 5. 1. The context of crisis: new stage for CSOs Context of crisis Double challenge as a sector Confront the Respond to new impact of the crisis social needs An increase A trend Changes in the Uncertainty in social towards the priorities of all over the future needs d reduction of parties ti of volunteering f l t i public and private income 5
  6. 6. The new stage for CSOs An increase There has been an increase in the number of people at risk of in i social i l social exclusion who require the services of third sector needs organizations. Attrendd On one side there is the administration mentioning “cutbacks”. towards the At the same time, authorities are promoting specific policies for reduction of the third sector public budgeting. On the other side there is a public and reduction i private and business donations applying a principle d ti in i t db i d ti l i i i l private of prudence. income There The e is a necessit for efficient management of necessity fo Changes in resources. However, it is important not to be influenced by the priorities the priorities of financers when it comes to action: of all parties g guarantee the coherency of your mission as an organization. y y g Uncertainty While some people maintain that the situation of crisis will over the increase solidarity and cooperation, others highlight the future of f f possibility that personal difficulties will cause people to have volunteering less time to dedicate to voluntary activity. 6
  7. 7. 2. The ways in which CSOs are vulnerable y Financial dependency and weakness The lack of acollective discourse The difficulties of as a sector long-term planning Typical factors that affect the vulnerability of third sector organizations A model of labour The diversificationrelations in progress of activities The process of consolidating collaborative relationships l ti hi 7
  8. 8. Typical factors that affect CSOs yp Financial Financial weakness has been due to a dependency lack of contingency plans and reserve and weakness funds to respond to crisis situations. The difficulties Th diffi lti The Th present context requires a reflection t t t i fl ti of long-term on strategies for the future, beyond the planning day-to-day running of the organization. The Th It is important to manage the diversification i i t tt th di ifi ti diversification of activities: it will be difficult to guarantee of activities continuity in all areas of work. 8
  9. 9. Typical factors that affect CSOs yp The process of There are common objectives that can be consolidating accomplished better if efforts and resources collaborative are pooled: collective interests must take relationships precedent over individual benefits benefits. A model of d l f This fact i ifi Thi f t signifies a point of vulnerability in i t f l bilit i labour view of the crisis insofar as the labour relations in framework will directly affect the economic progress conditions of many organizations. The lack f Th l k of a The context of crisis highlights the need to collective elaborate a collective discourse as a sector discourse as a that helps to develop and transmit a shared sector strategy. t t 9
  10. 10. 3. The impact of the crisis p p per type of CSOs yp Impact of the crisis Based on The activities Those being The size of the realized by the helped by the organization organization organization 10
  11. 11. Based on the size of the organizations g Small organizations have to readjust their Small organizational model to attend to the projected increase in users needing their services with the same number of people. Medium-sized organizations are at a higher risk of Medium M di adverse impacts since they are still in process of growing and often lack firm structures. Large organizations may have problems facing Large investments done in the recent years. They have y y more ability in replacing staff and voluntary people. 11
  12. 12. Based on the activities realized Direct Due to the increase in disadvantaged people, lines support of financial support –both public and private- will be channelled primarily towards activities giving direct support to the most vulnerable g pp groups pThe effect of this situation on those organizations that focus theiractivities on prevention, training, education, citizen participationor research, among other areas is still uncertain Training Citizen Prevention Education Research participation 12
  13. 13. Based on those being helped g p Highly vulnerable groups Organizations that work in the field of attending highly vulnerable groups are the ones who will suffer a remarkable increase within the people needing their help. This increase will not always b accompanied b more Thi i ill t l be i d by resources and, therefore, they will have to be able to manage their services more efficiently. This might be the case for organizations that work with immigrants or homeless p p , amongst others. g people, g 13
  14. 14. 4. Actions to undertake to confront the crisis Actions Two kinds of activities Improve the Raise the profile of efficiency of CSOs the third sector-Prioritizing and Specializing -Transparency-Reinforcing networking -Emphasizing communication-Competitiveness -Promoting greater k P ti t knowledge on TS l d-Revising management models -Improving political advocacy-Quality and continuous evaluation -Developing a collective discourse-Boosting innovation -Promoting social mobilization g -Reinforcing role of agent for social change 14
  15. 15. Actions to improve the efficiency of CSOs p y This crisis situation highlights the need to prioritize and Prioritizing and concentrate efforts on those lines of work that are most in t t ff t th li f k th t ti specializing line with the mission and values of the organization. Reinforcing In times of crisis the need to look for common strategies networking that th t enable improvements in efficiency and impact is even bl i t i ffi i di ti more evident The challenges that the sector must face make necessaryCompetitiveness to think of new ways to facilitate an advance in competitivenessRevising models Incorporate management systems that facilitate efficiencyof management while maintaining the specific values of the third sector. Quality and It is important to put effort into the continuous evaluation evaluation of the programs, projects and activities carried out. programs out The need to “do more with less” obliges organizations to be Boosting more creative and search for innovative ways of meeting innovation new challenges challenges. 15
  16. 16. Actions to improve the p p profile of the TS Accountability becomes essential in maintaining and Transparency strengthening society’s trust as well as the legitimacy of the g g y g y non profit sector Emphasizing Making efforts to explain what differential value the not-for- p profit sector communicationPromoting greater It is important to be able to analyze and measure the realknowledge on TS impact that the economic crisis has had on not-for-profit organizations Improving The value of the third sector and the contribution it makes topolitical advocacy society need to be highlighted now more than ever Developing a D l i It is important to create a collective d ll discourse as a sector that hcollective discourse enables the development of a global strategy to face the crisis People are the main capital of third sector organizations and Promoting social strategies must b d i be developed so they link society with the l d h li k i ih h mobilization action being carried out and get people involved Agent for We ought to make the most of the situation to envisage the social change contribution of the sector to society and lead a response 16
  17. 17. 5. The other side of the crisis Third Sector as an agent for social change i l h The crisis entails a period of change, an opportunity and th responsibility t t it d the ibilit to propose a new structural model and to move towards a more just world. Transition to The contribution The coherence of Citizen participation and the added the mission and and social value of the third the values mobilization sector Joint responsibility Determine the position Collaborative for matters of of the sector relationships collective interest 17
  18. 18. The Crisis and the Third Sector: es An Opportunity for Social cersecto Transformation Pau Vidal and Laia Grabulosa au da a d a a G abu osa ww.terc 8th July 2010 ISTR – 9th International Conferenceww