01 July 2005
The level of trust between government departments and charities needs to be strengthened so that a genuine partnership between the two sectors can develop, a spending watchdog urged this week.
In its June 29 report, the National Audit Office said substantial improvements were needed in the way government departments provide funding to the voluntary sector.
Although most recommendations arising from the Treasury's 2002 'cross-cutting review' of voluntary sector funding had been implemented, this had not been enough to bring about a widespread change in government funding practices, the NAO stressed.
Auditor general Sir John Bourn said: 'When engaging with the third sector, departments need to be clear as to whether they are “shopping” (buying a service), “giving” (supporting a worthy cause) or “investing” (building capacity in the sector) and adapt their approach to funding accordingly.' He added that developing shared centres of expertise across departments would help to enhance effectiveness.
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