2010 07 istr-the crisis and the third sector: An Opportunity for Social Transformation

1. The Crisis and the Third Sector:
An Opportunity for Social
Transformation
www.tercersector.org.es
Pau Vidal and Laia Grabulosa
8th July 2010
ISTR – 9th International Conference

2. 2
Index of contents
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. Actions to undertake to confront the crisis
5. The other side of the crisis

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

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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.

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

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

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

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

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

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

11. Based on the size of the organizations
11
Small organizations have to readjust their
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
adverse impacts since they are still in process of
growing and often lack firm structures.
Small
Medium
Large
Large organizations may have problems facing
investments done in the recent years. They have
more ability in replacing staff and voluntary
people.

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

13. Based on those being helped
13
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 be accompanied by more
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 people, amongst others.
Highly vulnerable groups

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

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

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

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

18. www.tercersector.org.es
Pau Vidal and Laia Grabulosa
8th July 2010
ISTR – 9th International Conference
The Crisis and the Third Sector:
An Opportunity for Social
Transformation