The Prince Update - December 14th
Our writer Richard Prince shares his regular horizon scan of the sector news, flagging up developments, new funding and opportunities in the social sector for portfolio careerists and others to be aware of.
NPC blog - Can mergers help us rebuild from Covid-19?
In this time of rising social need and falling income streams, charities have more reasons than ever to take calculated risks and to work together to achieve impact. Yet so far we have not seen any significant increase in charity mergers this year. This is despite the benefits associated with pooling your resources and collaborating on charitable services. Will this begin to change as charities and funders start to focus more of their efforts on the longer term over the coming months?
There are three key reasons why we don’t see more mergers in times of crisis:
· Mergers require huge amounts of time and energy
· Charity mergers are shrouded with stigma; ‘there is something about merger that really frightens people - people project all sorts of hopes, dreams and fears onto it.’
· Most charities don’t have the funds to proactively explore opportunities for mergers and partnerships.
Trusts and foundations view funding merger exploration as risky, but to help rebuild the sector post-covid, merger exploration must be properly resourced. Trusts and foundations have a pivotal role to play here.
Comment: research by our sister consultancy Eastside Primetimers into charity mergers is cited
Grants can help more charities and social enterprises develop their income levels
Article by Seb Elsworth of Access.
Before the pandemic, trading was the fastest growing part of the sector’s income, and many organisations have applied an enterprising approach over the past year to help them pivot their models and continue to support their communities. Rebuilding earned income streams will be a critical element of the sector’s recovery. So how best to design this sort of capacity building support?
Grants can help organisations to buy in skills and expertise to help them to develop new enterprising activity; to refine a business plan, undertake market research or create new systems. When delivered well this sort of consultancy support can upskill the organisation and have a lasting impact. But it requires a good match, for charities and social enterprises to know what they need and who can deliver it well.
Comment: EP has long argued the necessity for effective consultancy support like this
Government didn’t understand the charity sector, admits minister
This year’s coronavirus crisis highlighted how little the government understood the charity sector, the Cabinet minister responsible for the sector (Oliver Dowden, culture secretary) has said. He praised the sector’s efforts to produce better data and suggested this will help the government to support the sector better. He also explained how recent changes to the Office for Civil Society (OCS), which sits within the Department for Digital, Culture, Media and Sport (DCMS), would see the OCS play a less of a delivery role, and focus on linking up key stakeholders. Dowden also set out the government’s main priorities for the sector, which are about making it easier for people volunteer and unlocking new sources of income.
Refreshed Charity Governance Code
Last revised in 2017, the Charity Governance Code has been updated with a new principle on Equality, Diversity and Inclusion (EDI). The Code is a simple tool for charity trustee boards to ensure their governance structures are fit for purpose. That means they are focused on achieving the charity’s aims, so they can use resources effectively, comply with relevant legislation and – ultimately – continue to serve their beneficiaries.
Alongside EDI, the Code’s Integrity principle has been updated. Integrity in charity governance is about much more than managing funds and financial assets well. It’s also about values, ethical principles in all decision-making and creating a welcoming and supportive culture. The personal behaviour of charity trustees is paramount and we’ve updated the Code to make this clear.
Two in five community organisations expect to lose a quarter of their income
More than 40 per cent of community organisations are expecting to have lost at least one-quarter of their income in the second half of this year, according to new research. The report, called The Power of our Network and published by community membership body Locality, highlights how locally rooted organisations have remained agile and resilient thanks to their networks and leadership despite financial losses.
The report is based on a sample of 200 Locality members, carried out between July and September. It found that 41 per cent said they expected to lose at least one-quarter of their income by January. For organisations where trading was more than half of their income, 59 per cent expected their losses to be at least 25 per cent. Alongside the financial pressures, 44 per cent of community organisations said demand for their services increased by more than one-third during the first three months of the Covid-19 crisis.
Comment: no real surprises here – if anything I’m surprised it’s not a worse picture
The go to place for data about small charities
Small Charities Data is a digital research hub that brings together the latest and best available data on small charities in the UK (defined as those with income less than £1m pa). The data is updated yearly and drawn from a wide range of sources, like government, regulators, membership bodies and infrastructure organisations in the charity sector, independent funders, academics researchers, and many others.
Comment: a useful new data resource – make a note of the website if you do any research into smaller charities
Kings Fund explainer article - The next steps towards integrated care
On 26 November, NHS England and NHS Improvement published Integrating care: next steps to building strong and effective integrated care systems across England. The publication does two things: first, it sets out the next steps towards integrated care, continuing a journey the NHS has been on for many years and most recently articulated in the NHS Long Term Plan, and second, in the light of this updated model for the health and care system, the document also sets out options for legislative change. In both cases NHS England and NHS Improvement looks to build on progress already made by the NHS and its partners in working together to integrate services in the response to Covid-19.
This explainer describes this model, sets out some of the cross-cutting themes within it and describes the associated proposals for legislative change. It concludes by identifying some of the remaining questions that will determine how this proposed package will work.
Comment: useful guide for anyone wanting to keep up with latest developments in health and social care - will have a huge impact on voluntary organisations working within Integrated Care System (ICS) areas
What were the charity sector highlights of 2020?
As 2020 draws to a close, Civil Society magazine’s Kirsty Weakley considers whether charities have anything to celebrate.
Small charities responding to COVID-19 - Winter update
New update from our partner the Lloyds Bank Foundation for England and Wales about small charities, which have been at the frontline of the local community response to COVID-19. This report shares how charities have sustained their response to the continued challenges of COVID-19. This report is split into five key areas: “meeting the moment”, “a collaborative response”, “as small employers and organisations”, “looking forward”, and a “funding crisis deferred”.
Save the Children unveils strategy to tackle institutional racism and lack of inclusion
Save the Children UK is not an inclusive organisation for all its staff and institutional racism exists within it, the charity has said in its diversity and inclusion strategy. The strategy, Free to be me, was published yesterday and sets out plans to build equity and inclusion for marginalised groups, both within and outside the charity.