It’s easy to look at the charity
sector and get depressed. Grant funding being cut left, right and centre. Big
corporations being awarded contracts which charities feel they could deliver
with much better results for the beneficiaries.
It’s becoming harder and harder to get core costs covered through traditional means. New
regulations such as auto-enrolment on pensions increasing the costs.
However, on the other hand,
there are always new opportunities coming along and for charities willing to
be open-minded, flexible and ready to change their business models and ways of
working, there are opportunities for them to reinvent themselves whilst still
delivering services to their core beneficiaries.
Whilst local authorities have
less money, Clinical Commissioning Groups, Local Enterprise Partnerships , the
Big Lottery and other organisations have more money.
Many charities are successfully
making the transition from grants to trading – selling their services, whether
it be to statutory organisations, the private sector or private individuals. As
mentioned in this blog a few weeks ago, the blurring of the sectors between
businesses and charities is leading to various “shades of grey” business models
which enable beneficiaries to be served from a more solid financial model. The
newly launched All Saints Café in Leatherhead is a great example of an
organisation helping young people into employment, funded by its' food sales to
businesses and individuals in the local area.
Social media, gaming apps, big
data, online forum - technology provides new ways of attracting supporters,
spreading the word, gaining insights and communicating with the wider world. The rise of Social Investment - borrowing money to finance new projects - is another interesting development for the sector.
Businesses have been increasing
their Corporate Social Responsibility activities over the years. There has been scepticism about “greenwash”
and cynical motives, but I strongly believe that I am meeting more and more
businesses who genuinely want to make a difference and who can be a real help
to the charity sector.
However, the brave new world
requires vision, courage and a willingness to take bold steps. This needs to be
true not only for the chief executive, but also for the board of trustees and other
stakeholders. It is not for the faint-hearted.
My challenge to you this week is
this: if you are involved in running a charity, do you have a bold vision for
the future and are you ready to go for it? If not, why not?