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Keep calm and carry on - presentation for High Peak CVS

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Keep calm and carry on - presentation for High Peak CVS

  1. 1. Tony Okotie Keep Calm and Carry On The national picture  The challenges facing voluntary organisations  Examples of different ways of working 
  2. 2. Some context
  3. 3. Some context <ul><li>171,000 ‘general’ charities in UK </li></ul><ul><ul><li>Growth of 6,800 in 2006/7 </li></ul></ul><ul><li>Income growth to £33.2 billion </li></ul><ul><ul><li>Growth of 3.3% in 2006/7 </li></ul></ul><ul><li>Grants, donations and legacies were worth £13.6 billion in 2006/07, equivalent to 41% of total income </li></ul>
  4. 4. Some context <ul><li>Paid workforce in sector is over 634,000 employees </li></ul><ul><ul><li>Growing by 20,000 in 2006 </li></ul></ul><ul><ul><li>Now 24% bigger than 1997 </li></ul></ul><ul><li>Falls in global stock markets during recession </li></ul><ul><ul><li>Affects investment returns / endowments = less grant making </li></ul></ul>
  5. 5. Some context <ul><li>Recession has seen increased demand for services from the sector </li></ul><ul><ul><li>Debt advice, housing and homelessness, employment, employment support </li></ul></ul><ul><li>Impact of recession felt most by charities £100k - £500k </li></ul>
  6. 6. Some context <ul><li>Long term impact of recession on individual giving / donations not known </li></ul><ul><li>UK has emerged from recession </li></ul><ul><ul><li>‘ long tail’ still being felt by the sector </li></ul></ul>
  7. 7. Stormy times ahead?
  8. 8. Stormy times ahead? <ul><li>General election </li></ul><ul><ul><li>Change in government: Conservatives committed to role of voluntary sector </li></ul></ul><ul><li>BUT </li></ul><ul><li>Significant public sector funding cuts </li></ul><ul><ul><li>Savings this year of £6.1 billion </li></ul></ul><ul><ul><li>Local Authorities ‘share’ of savings £1.3 billion (21% of overall savings) </li></ul></ul><ul><ul><li>Less ‘ring fencing’ of grants from central Government to LA </li></ul></ul>
  9. 9. Stormy times ahead? <ul><ul><li>Full budget / CSR this Autumn will inevitably announce further, more draconian, cuts to reduce the £156 billion fiscal deficit at least by £60 billion </li></ul></ul><ul><ul><li>If same ‘share’ as in May transferred to local authorities will be £12.6 billion </li></ul></ul><ul><ul><li>Government consultation in August about public priorities </li></ul></ul><ul><ul><li>Full picture on where savings are to come from in October comprehensive spending review </li></ul></ul>
  10. 10. Stormy times ahead? <ul><li>A number of programmes that voluntary sector contribute to / benefit from axed: </li></ul><ul><ul><li>Future Jobs Fund </li></ul></ul><ul><ul><li>‘ Worklessness’ programmes </li></ul></ul><ul><li>Health budget protected </li></ul><ul><ul><li>But management cost reductions of 30%+ required </li></ul></ul>
  11. 11. recession? Continued demand for third sector organisations: homelessness, debt advice etc
  12. 12. But also opportunities? Big Society <ul><li>The creation and expansion of mutuals, co-operatives, charities and social enterprises , and enable these groups to have much greater involvement in the running of public services </li></ul><ul><li>Public sector workers given a new right to form employee-owned co-operatives and bid to take over the services they deliver </li></ul><ul><li>Training of a new generation of community organisers and support the creation of neighbourhood groups across the UK, especially in the most deprived areas </li></ul><ul><li>National Citizen Service for young people </li></ul><ul><li>A range of measures to encourage volunteering and involvement in social action </li></ul>
  13. 14. Good advice for hard times <ul><li>THERE IS NO EDUCATION LIKE ADVERSITY </li></ul><ul><li>WHAT WE ANTICIPATE SELDOM OCCURS; WHAT WE MOST EXPECT SELDOM HAPPENS </li></ul><ul><ul><ul><ul><li>Benjamin Disraeli </li></ul></ul></ul></ul>
  14. 15. Housekeeping It’s not going to affect us........ Has your organisation got its head in the sand?
  15. 16. Some strategies Mudfish, Lemming, Albatross, Shark or Pig?
  16. 18. Mudfish? <ul><li>Downsize, possibly looking at sharing staff or resources with another organisation, or specialising more in your most important or unique work. </li></ul>
  17. 19. Lemmings? <ul><li>Close down or seek a merger with another stronger organisation with which you share a mission. </li></ul><ul><li>Sometimes closing down is positive, mission accomplished. </li></ul><ul><ul><li>. </li></ul></ul>
  18. 20. Lemmings? <ul><li>Merger can also be positive especially for beneficiaries, creating efficiencies, enabling mutual learning, eliminating competition and developing a stronger and better resourced organisation . </li></ul>
  19. 21. Sharks? <ul><li>Seek growth and diversification, repositioning your organisation to build on your strengths and capitalise on opportunities. </li></ul><ul><li>Can work well if you really do have strengths and there really are opportunities. </li></ul>
  20. 22. Sharks? <ul><li>Sharks can threaten other organisations, but they need not be predatory. </li></ul><ul><li>And someone has to swallow the organisations that choose to close or seek mergers! </li></ul>
  21. 23. Albatross? <ul><li>Possibly the most tricky to pull off, requiring you to adopt completely new methods for essentially carrying on as usual. </li></ul><ul><li>Can be a good option if your services are excellent and much in demand and you are strong enough to invest in research and development. </li></ul>
  22. 24. Albatross? <ul><li>This option could include exploiting new sources of funding ,entering new organisational structures, or delivering services differently </li></ul>
  23. 25. ...or flying pig? “ Something will turn up, we have been through this sort of thing before”
  24. 26. Partnership in practice Collaboration between VAO & T3SC
  25. 27. Variety of Income Streams But .... <ul><li>55% of current income from TMBC </li></ul><ul><li>Majority of funding streams expire (renewed?) March 2011 </li></ul><ul><li>Increased pressure on external grant funding: Lottery and Capacitybuilders </li></ul><ul><li>.........and that was before the current pressure on public finances </li></ul>
  26. 28. About VAO <ul><li>Financial crisis for the organisation with Lottery funding closing and no funding secured post August 2009 </li></ul><ul><li>OMBC seeking radical changes in delivery and wider partners calling for competitive tendering process. </li></ul><ul><li>Chief officer left: T3SC approached by GMCVO to provide a management secondment to VAO </li></ul>
  27. 29. Balancing risk and opportunity
  28. 30. Why work together? <ul><li>T3SC and VAO have compatible needs </li></ul><ul><li>T3SC need to reduce costs without impacting on service provision </li></ul><ul><li>VAO needs a strong foundation to enable it to focus on the needs of the VCF sector in Oldham </li></ul>
  29. 31. Collaborative working
  30. 32. Where are we now? <ul><li>Secondment now a strategic alliance / formal collaboration </li></ul><ul><li>High level collaboration / partnership agreement signed </li></ul><ul><ul><li>Principles of relationship </li></ul></ul><ul><ul><li>Dispute resolution </li></ul></ul><ul><ul><li>Review and break clauses </li></ul></ul><ul><ul><li>Individual service schedules </li></ul></ul>
  31. 33. Where are we now? <ul><li>Services provided by T3SC for VAO </li></ul><ul><ul><li>Strategic management </li></ul></ul><ul><ul><li>Newsletter production </li></ul></ul><ul><li>Both organisations have balanced budgets for 2010-11 </li></ul><ul><ul><li>Saving for T3SC £50k </li></ul></ul>
  32. 34. Change for VAO <ul><li>Secured over £550k of funding (3 competitive tenders for new services) </li></ul><ul><li>Full backing of OMBC and third sector partners </li></ul><ul><li>Restructured and streamlined organisation focussed on delivery </li></ul><ul><li>Radical growth in membership of VAO and strengthened position as strategic leader </li></ul>
  33. 35. Touchstones for T3SC
  34. 36. Touchstones for T3SC <ul><li>Must save us money </li></ul><ul><li>Mustn’t affect the quality of service we offer Tameside groups </li></ul><ul><li>Must have commitment to relationship from VAO board, OMBC, TMBC </li></ul>
  35. 37. Lessons lear nt (so far...)
  36. 38. Lessons learnt (so far...) <ul><li>Be clear about the drivers for your organisation </li></ul><ul><ul><li>Entering new markets? Reducing costs? Improving quality? </li></ul></ul><ul><li>Think about how to protect service to clients not your organisation </li></ul><ul><li>Board leadership essential </li></ul><ul><ul><li>“ not empire building” </li></ul></ul>
  37. 39. Lessons learnt (so far...) <ul><li>Think the unthinkable now </li></ul><ul><ul><li>in 6 months time it might be too late </li></ul></ul><ul><li>Don’t expect huge cost savings overnight </li></ul><ul><li>Explain, explain, explain </li></ul><ul><ul><li>Remember Stakeholders / funders </li></ul></ul><ul><ul><li>Change can be scary for staff </li></ul></ul>
  38. 40. Other T3SC ‘thinking the unthinkable’ strategies <ul><li>‘ Day to day ’ cost saving programme </li></ul><ul><ul><li>Premises </li></ul></ul><ul><li>Asking ourselves: How would we deliver our core service with 40% less funding? </li></ul><ul><ul><li>And preparing for that eventuality </li></ul></ul><ul><li>Investigating other collaborations / mergers </li></ul>
  39. 41. Other T3SC ‘thinking the unthinkable’ strategies <ul><li>Increasing proportion of self generated income </li></ul><ul><ul><li>Launch of T3SCplus </li></ul></ul><ul><ul><ul><li>Consultancy </li></ul></ul></ul><ul><ul><ul><li>Research </li></ul></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul><ul><ul><ul><li>Bid writing </li></ul></ul></ul><ul><li>Upskilling; marketing; cultural change </li></ul>
  40. 42. BUT THINK AND ACT NOW

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