The third sector and the
social economy are essential to a better quality of life and access
to economic opportunity for the most disadvantaged citizens. It is
social projects that develop self confidence; introduce people to
basic skills such as literacy, education and first step training
programmes; work with young people, ex-offenders, lone parents and
those who have never had paid employment to give them hope,
choices, opportunities and skills. Such work in disadvantaged
communities leads to better economic outcomes not only for the
beneficiaries but also for society as a whole.
Third sector or VCS?
NAVCA's members employ a wide range of specialist staff to support
a variety of different groups, not all of which fit into the
traditional category of voluntary and community sector. For
example, our recent survey of members indicates nearly a three-fold
increase in the number of our members employing a social enterprise
development worker. Our increased involvement in promoting sport
could be seen as extending our reach beyond the traditional
voluntary and community sector. At present we tend to use the term
that best suits our audience; increasingly this means referring to
the third sector when we speak to government and VCS when we speak
to our members. There is a danger that this can lead to mixed
messages and misunderstanding. The term third sector is now
becoming common currency and reflects the ever widening reach of
our members.
Paid trustees
NAVCA believes that, besides expenses, trustees should not be paid.
Voluntary and honorary trusteeship makes the charity sector
distinct from the public and private sectors. The public is less
likely to support charities if trustees are getting paid. It is
vital to protect the independence and distinctiveness of the local
third sector. Paying trustees would undermine direct ownership by
the local community of local voluntary and community groups.
Trustees must be "voluntary but not amateur".
Single group funding
The Commission on Integration and Cohesion recommended, in its June
2007 report, that Single Group Funding should become the exception.
The Commission asserted that Single Group Funding contributed to
segregation and undermined community cohesion. NAVCA strongly
disagrees with the Commission's position. The experience of our
members supports the view that statutory funding for local BME
groups helps them to become effective advocates on behalf of their
communities and encourages their leaders to become involved in
district-wide voluntary action. In so doing, funding of BME groups
builds bridges across ethnic and faith divisions and promotes
cohesion. All community groups have a responsibility to build the
bridges between communities in order to improve understanding and
acceptance of each other's culture. Many also provide valuable
local services, tailored to meet the needs of people whom
mainstream services frequently fail. We would like to see all
groups adopt an outward looking and inclusive approach that builds
bridges with other sections of the local community.
NAVCA has been working with Voice4Change England to persuade the
Government to reject the Commission's recommendations on single
group funding. We welcome the Government's recent announcement that
acknowledges the positive role that groups representing specific
communities can have in building a more cohesive society. However
we await the Government's full response to the Commission on
Integration and Cohesion report before offering our whole-hearted
endorsement.
Compact
Whilst NAVCA strongly supports the principles of the local Compact,
we believe that it currently lacks the robust and challenging
implementation and monitoring framework that will effect lasting
change. Whilst the work of the Public Law Project and NCVO's
Compact Secretariat is effective, the Compact Commission could and
should do more. We would expect the Commissioner to take robust
steps to press any public body found to be in breach of the Compact
to take remedial action and to compensate any third sector
organisation which had suffered loss as a result of Compact
breaches.
Local Authorities and Primary Care Trusts should be required by
law to develop a local Compact agreement which would meet minimum
standards.
The Commissioner for the Compact should have statutory powers
similar to those of the Children's Commissioner.
NAVCA believes that further research and debate is needed before
NAVCA can develop a policy position on the issue of whether Compact
agreements themselves should have a statutory basis, which would
mean that there would be legal implications to Compact
breaches.
Grant funding
NAVCA believes that grants are key to sustaining local voluntary
and community action. Grants can be flexible, lever extra support,
keep a good project going or help an organisation develop its
capacity to deliver sevices. Grant aid is an essential part of the
local funding mix for community organisations and remains essential
for thriving local communities and is sometimes the only suitable
funding for some groups.
We believe that there are a number of policy drivers causing
local authorities to review the way in which they fund the sector.
Not least of these is the emphasis that Government has placed on
the sector's service delivery role in recent years. Local
authorities, like the rest of the public sector, are under
increasing pressure to make efficiency savings and to demonstrate
value for money in the way they utilise their resources. For some
authorities, the combined effect of these drivers has meant a shift
away from grant funding toward an increasingly contractual
relationship with the third sector - we find this unacceptable. It
should not be an either or: NAVCA supports a mixed economy of
funding for the third sector where grants, service contracts and
endowments all have their place.
Where there is a move away from grant funding, it is likely to
have particular implications for smaller and newer organisations
that lack the capacity to meet service delivery specifications but
which, none the less, add value locally by: addressing the needs or
interests for specific groups within the community; building social
capital; improving quality of life; and providing a sense of
community and belonging.
Local third sector groups run vital preventative services such
as reducing youth offending and supporting families where children
are at risk of being taken into care. These services help to
prevent social exclusion and help to reduce the costs associated
with youth crime and family breakdown. Grants are vital to
supporting such third sector services that add value to statutory
provision by:
• offering impact beyond scale: for example using an initial grant
to lever in additional funds from a community foundation;
• reaching people whose voices are never heard;
• involving their users and the wider community and reflecting the
diversity of the local area;
• promoting active citizenship through volunteering and
philanthropy;
• looking beyond the narrow focus of a contract to tackle the
breadth of the issues faced by their beneficiaries;
• focusing on the quality of life within their communities;
• improving outcomes for individuals through one to one
support;
• responding directly to community needs;
• addressing local need and concentrating on outcomes rather than a
specific target;
• reaching those who may otherwise "avoid" approaching or
responding directly to statutory providers.
NAVCA is campaigning with 10 leading voluntary sector agencies
to promote the importance of grant aid for third sector
organisations. We call on all local authorities and other local
statutory bodies working with communities to establish grant
funding to support community initiatives as part of a sustainable
funding mix for the local third sector.
Volunteering
Volunteering England (VE) and NAVCA are strongly committed to
partnership working in order to add value and strength to their
core activities and, wherever possible, to be speaking with a
united voice to their members, as well as to Government on their
behalf. To this end, the two agencies will hold a meeting each year
of chairs and chief executives to review: the Memorandum of
Understanding and its impact; joint activity undertaken;
intelligence from both organisations about the way the relationship
is perceived at local level; the ways in which NAVCA and VE intend
to develop the relationship in the coming year; and potential for
the development of new joint activity.
Volunteer centres
We would not support a drive to make volunteer centres co-terminal
with any one particular statutory institution structure and favour
an approach that encourages the local third sector to determine how
it organises its volunteer centres and any changes should be
locally owned, managed and led.
The policy positions on this page have been approved by the
NAVCA Trustee Board.