Support for charitiesHow can funding, giving and charity

regulation be made to work better for the voluntary sector

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.

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.

The funding environment

Source: BBC News

Increased demand

(Food banks) Source: Oxfam

In addition to a reduction in income, many organisations have also experienced an increased demand for services.

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.

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%

Grants and contracts

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.

The growth of social investment

Source: Guardian

Giving levels remain fairly stagnant

Median and mean amounts given per donor per month, 2004/05 – 2011/12

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)

Technology

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.

Education in giving

Source: Guardian

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.

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.

The way charities are regulated

Source: Guardian

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.

4%9%

10%13%13%

13%16%

19%20%19%22%

30%25%

33%36%32%

41%41%

48%47%

46%51%

51%39%

1%1%

1%1%2%

2%2%

2%2%4%3%

2%7%

2%6%

10%10%

10%4%

8%10%

8%11%

-29%-32%-35%-34%-36%-20%-35%

-40%-42%-33%-37%-39%

-28%-41%

-35%-25%

-21%-31%-28%-30%-27%-25%-24%

-12%

-57%-42%

-48%-44%-44%

-12%-43%-27%-30%

-33%-32%

-21%-31%

-16%-17%

-24%-10%

-12%-10%-9%-12%-9%-9%

-5% 36%

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%

Political partiesMultinational companies

Insurance companiesNewspapersGovernment

The Fundraising Standards Board (FRSB)Banks

Civil ServiceLocal Authorities

Trade UnionsLegal system

SupermarketsThe Church

TV and radio stationsThe Royal Mail

The Royal FamilyScouts and Guides

The BBCSmall businesses

SchoolsThe Police

CharitiesThe NHS

The Armed Forces

Haven't heard of Very little Not much Not sure Quite a lot A great deal

Trust in institutions – July 2011

“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,

nfpSynergy

The accountability of charities is one of the pillars that uphold the high levels of public trust in voluntary organisations.

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.

Public trust in charities is high

Source: Telegraph

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.

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.

Getting our houses in order

Source: Telegraph

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?

So what does this all mean?Some food for thought.

If you have 2 minutes - We’d love to hear your ideas in relation to these big debates – contact 2015project@ncvo-vol.org.uk

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?

What next?

ReferencesJust Giving - http://www.justgiving.com/The Pennies Foundation http://www.pennies.org.uk/NCVO Almanac – Giving http://data.ncvo.org.uk/tag/charitable-giving/NCVO Almanac – Funding http://data.ncvo.org.uk/a/almanac13/almanac/voluntary-sector/finance-the-big-picture/what-is-the-voluntary-sectors-total-income-and-expenditure-2/NCVO Almanac – Income http://data.ncvo.org.uk/a/almanac13/almanac/databank/income-2/Charities Act 2011 - http://www.legislation.gov.uk/ukpga/2011/25The Charity Commission – http://www.charitycommission.gov.uk/The Transparency of lobbying, non-party campaigning and trade union administration bill - http://www.legislation.gov.uk/ukpga/2011/25NCVO amendment suggestions to Lobbying Bill - http://blogs.ncvo.org.uk/2013/11/29/no-silver-bullets-but-eight-little-bullets-to-improve-the-lobbying-bill/