The local third sector

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.