Since the election, we have seen an extraordinary increase in political and media interest in the role of community organisations and the nature of the relationship between the voluntary sector, society and the state.
This is set against the gloomy backdrop of a challenging economic landscape and even of a misunderstanding among some, less familiar with how the not-for-profit sector works, about the possible impact of public spending cuts on the charitable sector. Government cuts shouldn’t affect community organisations, the argument goes, because charities should be financed by private donations and have no business ‘taking money’ from the public purse.
The reality is that of course spending cuts can have an effect on third sector organisations (charities and social enterprises). Many receive income from contracts delivered for their local authority – providing adult learning courses, community transport or drug and alcohol rehabilitation services, for instance.
If that council finds it can no longer afford to renew that contract then not only do the local people who relied on that particular service lose out, but if the contract represented a major source of income for the organisation then it will have to cut back on staff and facilities – threatening the future of other non-contractual services it provides to its community. And many third sector leaders are very worried cuts will fall unfairly on disadvantaged communities.
No organisation – profit making or otherwise – should be over reliant on a single source of income. But the knock-on effects of cuts to the public spending that many charities and social enterprises depend upon could inhibit the realisation of the Big Society that David Cameron has talked about so enthusiastically.
But I am no pessimist. We could be at a tipping point for the level of involvement third sector organisations have in our society – bringing their great work from the margins well into the mainstream of public life. Those of us who work in the sector know the power our organisations have to improve people’s lives and yes, change the world. We really are presented with a great opportunity.
Charities and social enterprises must have their eyes wide open to the challenges and ready themselves to take on the new role available for them. Now is the time for the sector to draw on its strengths for innovating to ensure that they not only survive but flourish. Strengthening leadership and financial management, performing routine evaluations to prove the value of services to commissioners and exploring new models like consortia bidding are just some of the subjects that I would encourage sector chief executives to be discussing right now with their boards and staff to ensure that this opportunity is grabbed with both hands.
Stephen Bubb is chair of The Social Investment Business www.thesocialinvestmentbusiness.org
.
