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v
Iona Joy, NPC, November 8th 2018
NORFOLK ‘WORKING TOGETHER’ GROUP
TRANSFORMING THE CHARITY SECTOR
2
Consultancy/
think tank
at nexus
Charity
Funder
Increasing the
impact of charities
eg, impact-focused
theories of change
Strengthening the
partnership
eg, collaboration
towards shared
goals
Increasing the
impact of funders
eg, effective
commissioning
Sector
3
• Funding environment
challenging for smaller orgs
• Brexit
• Declining trust (not just
charities)
• Increasing demand
• Social fragmentation
• Opportunities to rise to
challenge: eg, data/digital,
user involvement, diversity
STATE OF THE SECTOR PROGRAMME
+ 2018 ‘Pulse’ interviews of 17
sector leaders
EXTERNAL CONTEXT
Macro vs micro
SOME ISSUES FACING CHARITIES TODAY
5
Universal Credit
Health
Criminal justice
Stagnant pay
Housing
Trust
THE IMPORTANCE OF CONTRACTING TO THE
VOLUNTARY SECTOR
6
7
8
9
10Source: GrantNav, analysed by NPC
Grantnav = 360giving: 94 funders, mainly trusts and foundations, some government
SOME MODEST COMPENSATION BY FUNDERS?
11Source: GrantNav, analysed by NPC
BIT OF MIXED PICTURE
12
1.43 1.43
1.59
1.93
1.59
2.21
1.31
2.11
2.58
0.00
0.50
1.00
1.50
2.00
2.50
3.00
CHARITY DENSITY BY REGION
(registered local charities per 1000 population)
Source: James Bowles using Charity Commission data 2015
HOW SECTOR HAS FARED
Numbers don’t look too bad
0
10
20
30
40
50
60
2000/01 2003/04 2006/07 2009/10 2012/13 2015/16
Income
Expenditure
INCREASES IN INCOME AND SPENDING HAVE CONTINUED
Income and spending over time, 2000/01 to 2015/16 (£bn, 2015/16 prices)
£47.8bn
£46.5bn
• Income from the state = £15.3bn or 32% of voluntary sector income, 75% of
it in the form of fees and/or contracts – local government has overtaken
central gov
• Income from individuals = £22.3bn
0
5
10
15
20
25
2000/01 2003/04 2006/07 2009/10 2012/13 2015/16
Individual Government Voluntary sector
INCOME FROM INDIVIDUAL HAS BEEN DRIVING THE
INCOME INCREASE FOR THE LAST FEW YEARS
Real term income by source over time, 2000/01 to 2015/16 (£bn, 2015/16 prices)
0%
20%
40%
60%
80%
100%
2000/01 2003/04 2006/07 2009/10 2012/13 2015/16
Small & Medium
Large
Major & Super-major
BIG GROWTH: HALF GENERATED BY
LARGEST ORGANISATIONS…
£24.8bn
£13.8bn
£9.2bn
£11.9bn
£8.8bn
£10.9bn
Percentage of total income by size over time, 2000/01 to 2015/16 (%):
• Micro: under £10k
• Small: £10-£100k
• Medium: £100-£1m
• Large: £1-£10m
• Major: £10-£100m
• Super-major: Over £100m
NCVO Almanac
£48bn£31bn
65%
0% 2% 1%
4%
7%
-2%
0%
2%
4%
6%
8%
Micro &
Small
Medium Large Major Super-major
Orgs are
small and
local
MOST OF THE SECTOR IS SMALL AND LOCAL DESPITE
THE GROWTH IN LARGE ORGANISATIONS
Percentage change in population by size, 2014/15 to 2015/16 (%)
SCALE OF CHANGE IN FUNDING –
COMMUNITY LINKS
18
Merged with
Catch 22
in 2017
VOLUNTEERING TRENDS – PRETTY STEADY
OVERALL
19
SECTOR RESPONSE
Shaping up?
THE ROLE OF LOCAL CHARITIES AND SOCIAL
ENTERPRISES
Diverse sector – variable in
quality and impact:
• local branches of big charities
• small independent charities
• lack of bureaucracy and
professionalism can be a barrier
to effectiveness OR
• lend itself to agility
Heart of the sector:
• civil action
• volunteering
• close to action
• local knowledge
• join up with others
• social capital creators
21
of charities expect to do more
activities in 3 years time
expect to do fewer activities
22
74%
4%
ACTIVITIES
of major charities report taking
more risks now than 3 years ago
of large charities report taking
more risks now than 3 years ago
of small and medium charities
report taking more risks now than
3 years ago
23
57%
53%
24%
RISK
24
2018: Walk away…. and don’t subsidise ‘under the radar’
25
2018: ‘Place based’
approaches welcome, but
need resources, and
culture change
PARTNERING WITH THE PRIVATE SECTOR
26
of charities report partnering
with the private sector
expect to do more of this in
the future
33%
41%
2018: ‘Place based’ approaches include private
sector, but culture a challenge
27
2018: We’re still pretty poor,
and funders are rubbish
USER VOICE
28
report users
directly delivering
services
56%
have involved
users in service
design
72% have involved
users in strategy
development
65%
2018: ‘Citizen co-production better term
Hard to do well: have to ‘lose control’
DIGITAL STRATEGY
29
reported that their digital
strategy sat with the board or
senior management team
did not have a digital strategy
57%
27%
Ongoing challenge for charities to understand what it
means, and work out what to do
30
2018: charities ‘wait and see’… affected by policy vacuum
Should speak up—key role for charities to understand why it happened
and support those affected
NPC RECOMMENDATIONS
CUT CLOTH DOESN’T MEAN LESS IMPACT?
• Achieving mission through other means… eg
– New ways of working: empowerment
– Advocacy vs direct delivery
– Making noise
• Using assets
– Physical: buildings etc
– Human: citizen-participants, volunteers, contacts
• Ways of merging and collaborating
– Speak truth to power: better if single voice
– Means of cutting costs
– Start planning early
32
MERGER AND COLLABORATION SPECTRUM
33
4
Back-office
sharing
White
labelling
Collaboration
& co-funding
Outsource
functions
Joint national
entity
Service/asset
swap/transfer
Group
Structures
Subsidiary
model
New charity
merger
Takeover and
acquisition
Less formal More formal
Back-office models
Alternative structures
Group merger models
Unified merger models
Safe haven
options
Cost-cutting
options
Impact go
further options
Strategic imperative vital
v
THANK YOU
iona.joy@thinknpc.org
November 2018

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The VCSE Landscape - Challenges and Opportunitiess

  • 1. v Iona Joy, NPC, November 8th 2018 NORFOLK ‘WORKING TOGETHER’ GROUP
  • 2. TRANSFORMING THE CHARITY SECTOR 2 Consultancy/ think tank at nexus Charity Funder Increasing the impact of charities eg, impact-focused theories of change Strengthening the partnership eg, collaboration towards shared goals Increasing the impact of funders eg, effective commissioning Sector
  • 3. 3 • Funding environment challenging for smaller orgs • Brexit • Declining trust (not just charities) • Increasing demand • Social fragmentation • Opportunities to rise to challenge: eg, data/digital, user involvement, diversity STATE OF THE SECTOR PROGRAMME + 2018 ‘Pulse’ interviews of 17 sector leaders
  • 5. SOME ISSUES FACING CHARITIES TODAY 5 Universal Credit Health Criminal justice Stagnant pay Housing Trust
  • 6. THE IMPORTANCE OF CONTRACTING TO THE VOLUNTARY SECTOR 6
  • 7. 7
  • 8. 8
  • 9. 9
  • 10. 10Source: GrantNav, analysed by NPC Grantnav = 360giving: 94 funders, mainly trusts and foundations, some government SOME MODEST COMPENSATION BY FUNDERS?
  • 11. 11Source: GrantNav, analysed by NPC BIT OF MIXED PICTURE
  • 12. 12 1.43 1.43 1.59 1.93 1.59 2.21 1.31 2.11 2.58 0.00 0.50 1.00 1.50 2.00 2.50 3.00 CHARITY DENSITY BY REGION (registered local charities per 1000 population) Source: James Bowles using Charity Commission data 2015
  • 13. HOW SECTOR HAS FARED Numbers don’t look too bad
  • 14. 0 10 20 30 40 50 60 2000/01 2003/04 2006/07 2009/10 2012/13 2015/16 Income Expenditure INCREASES IN INCOME AND SPENDING HAVE CONTINUED Income and spending over time, 2000/01 to 2015/16 (£bn, 2015/16 prices) £47.8bn £46.5bn • Income from the state = £15.3bn or 32% of voluntary sector income, 75% of it in the form of fees and/or contracts – local government has overtaken central gov • Income from individuals = £22.3bn
  • 15. 0 5 10 15 20 25 2000/01 2003/04 2006/07 2009/10 2012/13 2015/16 Individual Government Voluntary sector INCOME FROM INDIVIDUAL HAS BEEN DRIVING THE INCOME INCREASE FOR THE LAST FEW YEARS Real term income by source over time, 2000/01 to 2015/16 (£bn, 2015/16 prices)
  • 16. 0% 20% 40% 60% 80% 100% 2000/01 2003/04 2006/07 2009/10 2012/13 2015/16 Small & Medium Large Major & Super-major BIG GROWTH: HALF GENERATED BY LARGEST ORGANISATIONS… £24.8bn £13.8bn £9.2bn £11.9bn £8.8bn £10.9bn Percentage of total income by size over time, 2000/01 to 2015/16 (%): • Micro: under £10k • Small: £10-£100k • Medium: £100-£1m • Large: £1-£10m • Major: £10-£100m • Super-major: Over £100m NCVO Almanac £48bn£31bn
  • 17. 65% 0% 2% 1% 4% 7% -2% 0% 2% 4% 6% 8% Micro & Small Medium Large Major Super-major Orgs are small and local MOST OF THE SECTOR IS SMALL AND LOCAL DESPITE THE GROWTH IN LARGE ORGANISATIONS Percentage change in population by size, 2014/15 to 2015/16 (%)
  • 18. SCALE OF CHANGE IN FUNDING – COMMUNITY LINKS 18 Merged with Catch 22 in 2017
  • 19. VOLUNTEERING TRENDS – PRETTY STEADY OVERALL 19
  • 21. THE ROLE OF LOCAL CHARITIES AND SOCIAL ENTERPRISES Diverse sector – variable in quality and impact: • local branches of big charities • small independent charities • lack of bureaucracy and professionalism can be a barrier to effectiveness OR • lend itself to agility Heart of the sector: • civil action • volunteering • close to action • local knowledge • join up with others • social capital creators 21
  • 22. of charities expect to do more activities in 3 years time expect to do fewer activities 22 74% 4% ACTIVITIES
  • 23. of major charities report taking more risks now than 3 years ago of large charities report taking more risks now than 3 years ago of small and medium charities report taking more risks now than 3 years ago 23 57% 53% 24% RISK
  • 24. 24 2018: Walk away…. and don’t subsidise ‘under the radar’
  • 25. 25 2018: ‘Place based’ approaches welcome, but need resources, and culture change
  • 26. PARTNERING WITH THE PRIVATE SECTOR 26 of charities report partnering with the private sector expect to do more of this in the future 33% 41% 2018: ‘Place based’ approaches include private sector, but culture a challenge
  • 27. 27 2018: We’re still pretty poor, and funders are rubbish
  • 28. USER VOICE 28 report users directly delivering services 56% have involved users in service design 72% have involved users in strategy development 65% 2018: ‘Citizen co-production better term Hard to do well: have to ‘lose control’
  • 29. DIGITAL STRATEGY 29 reported that their digital strategy sat with the board or senior management team did not have a digital strategy 57% 27% Ongoing challenge for charities to understand what it means, and work out what to do
  • 30. 30 2018: charities ‘wait and see’… affected by policy vacuum Should speak up—key role for charities to understand why it happened and support those affected
  • 32. CUT CLOTH DOESN’T MEAN LESS IMPACT? • Achieving mission through other means… eg – New ways of working: empowerment – Advocacy vs direct delivery – Making noise • Using assets – Physical: buildings etc – Human: citizen-participants, volunteers, contacts • Ways of merging and collaborating – Speak truth to power: better if single voice – Means of cutting costs – Start planning early 32
  • 33. MERGER AND COLLABORATION SPECTRUM 33 4 Back-office sharing White labelling Collaboration & co-funding Outsource functions Joint national entity Service/asset swap/transfer Group Structures Subsidiary model New charity merger Takeover and acquisition Less formal More formal Back-office models Alternative structures Group merger models Unified merger models Safe haven options Cost-cutting options Impact go further options Strategic imperative vital

Editor's Notes

  1. IJ