The Prince Update - April 19th

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.

Charity Commission sees evidence of ‘worsening financial resilience in the sector’ 

Charities are less financially resilient than they were a year ago, the Charity Commission’s chief executive Helen Stephenson told MPs last week. For example, she said, the percentage of charities with incomes of more than £500,000, which had either negative or no free reserves had increased from 9% in April last year to 28% this March.

'Confusing' local authority discretionary grant scheme

Research by Third Sector found more than 2,200 small charities in England have accessed at least £17.5m from about 140 councils under the Local Authority Discretionary Grants Fund.  Membership bodies have criticised “confusing” and “inconsistent” local authority grant funding after new research found that fewer than half of all councils are willing or able to identify charities when awarding discretionary grants.

The Local Authority Discretionary Grants Fund opened for applications in May and closed in September last year.  Councils were asked to prioritise charity properties receiving charitable business rates relief because they were not eligible for small business rates relief or rural rate relief.

NPC - Charities at a 'turning point' in collaborations

Local charities have collaborated more quickly and more effectively during the coronavirus crisis, according to new research by the think tank NPC. The report, Coordination in Place, looks at how small charities in three areas of England (Buckinghamshire, Coventry and Sutton) have worked with local authorities, funders and other voluntary groups in response to the pandemic.

Charities in all three areas reported a number of improvements during the crisis, including faster collaboration between organisations, a stronger sense of shared purpose and lower bureaucracy in working together. The research said this was driven by “fundamental attitudinal changes” during the pandemic. Those changes included greater trust between councils and charities, a higher appetite for risk, and more honesty about how well different approaches to social challenges worked.  Charities also felt that the “immediacy” of the collective struggle against the impact of Covid-19 had helped all organisation identify and tackle a single priority together.

New Social Impact Measurement Toolbox

Social Enterprise East of England (SEEE) has launched a new Social Impact Measurement Toolbox aimed at small and medium sized Social Enterprises and voluntary groups – whatever stage they are at in recording their impact. This innovative Toolbox will enable organisations to follow a framework that gives them the evidence they need to show the impact they make in their communities and for their investors.  The new Toolbox has been developed by Nicky Stevenson, a Director of SEEE and consultant who has converted the original paper version into a fully functional website that organisations can work through at their own pace.

Comment: Nicky has been an Eastside Primetimers consultant

SEUK report - The effect of COVID-19 on the social enterprise sector

UK social enterprises are reporting a surge in optimism as the country emerges from the worst of the pandemic, according to a report from Social Enterprise UK (SEUK).  Social enterprises have also proven adaptable, with 82% saying they were running a different business model compared with pre-pandemic. As of October 2020, 29% provided new products or services.

This report looks at how social enterprise has fared over the last year of the COVID crisis, using data from the Social Enterprise Advisory Panel and case studies. It makes recommendations about what is needed to ensure that social enterprise can deliver its potential in recovery.

Bates Wells: report on the last year for the sector

Twelve months after the UK first locked down, this is a moment to pause, step back and look at the bigger picture in what has been an extraordinary year for the charity sector.  Bates Wells asked leading sector journalist Liza Ramrayka to take a look back and pull together the key challenges, solutions and lessons learned.  Liza’s report, Positive Change: the outcomes of an unprecedented year reflects back on this past year, but more importantly, looks ahead.  It feels as if the future will inevitably be different, and we need to be thoughtful about how we move forward. Although funding is likely to remain tough, there are still things to be positive about.

Paul Johnson, IFS article - If you want to make permanent cuts to the aid budget, be honest about it

Despite the recent cut in aid funding from 0.7% to 0.5% of GDP, Britain will remain one of the world’s biggest aid donors.  However, the way in which policy has been changed and the wording around future policy looks neither wise nor honest.  The government’s formal position is that maintaining aid spending at 0.7 per cent is “not an appropriate prioritisation of resources” given the coronavirus pandemic, but that it intends to return to 0.7 per cent “when the fiscal situation allows”. But when will the fiscal situation allow?  It remains to be seen whether we will get back to spending 0.7 per cent of national income on overseas aid. Paul Johnson’s guess is that there are no serious plans to do so. If there are, then it is incumbent on government to tell us when and how that will happen

Comment: good article – why is government so lacking in a long term strategy in this area with all of the reputation risks?

Barnardo's involved in rival bid to run the National Lottery

An Italian company has launched a bid to run the National Lottery, together with Barnardo’s. Sisal, which currently operates Italy’s most popular lottery - SuperEnalotto national lottery - is making its bid supported by CVC Capital Partners, a private equity firm. Francesco Durante, chief executive of Sisal, told The Sunday Telegraph: “It’s one of the largest lotteries in the world, so for people working in our industry it’s a big aspiration.” Javed Khan, chief executive at Barnardo’s, said the involvement of the charity would “strengthen the partnership’s focus on player protection and responsible play. We are pleased to be working with Sisal in bidding to revitalise the UK National Lottery, which generates substantial funds for worthy causes across the UK. Our involvement will strengthen the partnership’s focus on player protection and responsible play, whilst deepening understanding of the UK charity sector and how it works to make a difference in the heart of local communities.”

Thousands of charity shops reopen as new rules start

Charity shops should expect “very heavy trading” as they reopen in England and Wales, the Charity Retail Association (CRA) has said. Thousands of shops have reopened this week as national Covid-19 restrictions lifted, with more following suit in Scotland when rules change there later in the month.  Most charities plan to open all of their shops as soon as possible, the CRA said. After the first national lockdown ended in June last year, many staggered the process over many weeks. The CRA also told shop managers that they no longer needed to isolate and clean new donations, meaning that stock can be displayed and sold more quickly.

Coronavirus (COVID-19) guidance for the charity sector

Guidance from Charity Commission to help with running your charity during the coronavirus (COVID-19) outbreak – updated on 13th April.