Measuring Impact Absolute returns Charity fraud Impact measurement can shape alter- Absolute return strategies embraced The challenge of fraud and why an native methods of funding charities by charities have increased ten-fold anti-fraud culture can mitigate risk

April/May 2012 l www.charitytimes.com

Social enterprises: on a mission 18 October 2012 Lancaster London Hotel

CALL FOR ENTRIES Deadline for entries 25 May 2012

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For Information about Entries As such, the event itself is built around the individuals and teams for whom the Awards Andrew Holt are intended: trustees, chief executives, directors and other upper-level management T: 020 7562 2411 from not-for-profits across the UK. Reflecting this belief, the Awards provide the charity E: [email protected] sector with a dedicated event to reward the work carried out in difficult and competi- Hayley Kempen T: 020 7562 2414 tive conditions, and establishes a unique annual congress of the pre-eminent figures in E: [email protected] the sector at the premier charity event of the year. Sponsorship Opportunities www.charitytimes.com/awardsThe objectives of the awards have remained consistent since their inception: Cerys McLean T: 07766662610 E: [email protected] l To honour the outstanding professionals in the many and varied fields of charity Aisling Davis management T: 020 7562 2423 l To support continuing professional development and contribute towards raising E: [email protected] the standards of charity management Table Bookings l To promote and raise the profile of the charity sector Hayley Kempen l To provide recognition for those who are providing effective support to the sector. T: 020 7562 2414 E: [email protected]

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271x204_ct_awards2012.indd 1 4/5/2012 4:01:15 PM EDITORIAL COMMENT

Editor Andrew Holt [email protected] The death of the Big Society 020 7562 2411

Contributing Writers The Big Society is dead. Our analysis of the Budget James Bevan, Caron Bradshaw, James Codring- ton, Seb Elsworth, Lydia Frempong, Duncan (Page 12) concludes that George Osborne finally killed Green, Marek Handzel, Joe Irwin, Caron Kemp, off David Cameron’s big idea for good. Elliot Lane, Joe Lepper, Ginny Lunn, Paul Palmer, The disparity between the rhetoric of the Big Society David Pritchard, Hannah Terrey, Nick Temple, and reality of Government policy was fatally exposed Gareth Thomas, Peter Wanless, Ben Wittenberg in the Budget. So much so, that any talk of the Big Society

Design & Production is now meaningless. As a vision, it was always well-mean- Matleena Lilja ing, but deeply incoherent and lacking in any depth. [email protected] The launch, finally, of Big Society Capital is 020 7562 2400 nevertheless to be welcomed. But the £600million injected into this venture should be measured against the £4.5-£5.5billion the sector will lose in the Advertising Manager Cerys McLean course of this Parliament through government cuts [email protected] How much impact Big Society Capital will have on the sector only time will 07766 662 610 tell, but the aim seems to be to boost the impact of social enterprises, who as we report (page 24) are an added dimension to the sector and are in a Advertising Sales Executive confident position to boost the UK on a civil society level and the economy Aisling Davis [email protected] as a whole. 020 7562 2423 For some time, charities have been handling statistics that show some form of fall in fundraising. Subscriptions But new data points to a more difficult, albeit understandable scenario. Joel Whitefoot Individuals who already donate say that they are giving to their limit, according [email protected] 020 8950 9117 to YouGov research commissioned by the Institute of Fundraising. As many as 43% of people questioned felt they were already giving as much Subscription Rates (6 issues pa) as they could afford, and have cited having a higher income and earning more £79pa registered charities money as the biggest factor that would encourage them to give more to £119pa rest of UK, £127pa EU charity. This reveals the parlous state the sector finds itself in. £132pa elsewhere But unlike the concept of the Big Society, the sector will survive and learn Printed by Warners Midlands new ways to thrive. All rights reserved. The views expressed are not necessarily those of the publishers. Andrew Holt Editor ISSN : 1355-4573

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Average net circulation of 10,373 copies for July 10 – June 11

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CONTENTS

28

32 24

Features

Measuring Impact COVER STORY: ON A MISSION 28 The measure of it all Social enterprises are in a unique position: they are experiencing more Joe Lepper finds measuring impact is a growth than the private sector, have greater levels of diversity in senior force for good helping to shape alternative management and are confident going forward, finds Caron Kemp methods of funding charities

Sponsored by The Review Columns

06 Youth unemployment 14 Local Society Reviewed by Ginny Lunn Joe Irwin on Local and Big Society Investment analysis 07 The UK Civil Society Almanac 15 The politics of the Big Society 36 Reliable returns Reviewed by Paul Palmer Gareth Thomas on sector gloom Marek Handzel finds absolute return 08 Principles into Practice 16 25 years of leadership strategies by charities have increased Reviewed by Seb Elsworth Caron Bradshaw on sector finance ten-fold, and can help reduce portfolio 09 Famine & Foreigners 17 Government giving volatility and provide downside protection Reviewed by Duncan Green Hannah Terrey on the Government 10 Writing your investment policy 18 Big Society Capital Charity Fraud Reviewed by James Bevan Elliot Lane on the setor and the 40 Zero tolerance 11 Social Enterprise Schools launch of Big Society Capital Elliot Lane finds a criminal fraternity has Reviewed by Lydia Frempong become involved in charity fraud, hitting the heart of the sector, but for charities, an Analysis and Profile Charity Services anti-fraud culture should mitigate the risk and act as a deterrent 12 Sector Analysis 46 Suppliers Directory Andrew Holt on the Budget and the Comprehensive listings of products 44 Grant-making death of the Big Society and services for the sector Ben Wittenberg notes DSC research shows 20 Profile funding from grant making trusts remains Andrew Holt met Stonewall stable despite the recession, but an CEO Ben Summerskill increased demand on trusts is inevitable www.charitytimes.com 05 THE REVIEW

Youth unemployment by the ACEVO CoYU

he clue is in the title: “the crisis we Although there are many sensible term success of their most disadvantaged Tcannot afford”. This report is not only points in the report to comment on, I will pupils. Indeed, The Trust’s own xl scheme an invaluable source of analysis covering pick up briefly on a few. Firstly, it is worth supports those at risk of exclusion almost every aspect of youth unemploy- noting that the Commission’s research from school, improving their grades ment, but is a call-to-arms to address finds that often cited theories about the and employability skills for the future. what the ACEVO Commission on Youth impact of immigration, an over generous Some of the other recommendations Unemployment describes as “a time-bomb minimum wage, or a benefits system are also worth investigating. It would under the nation’s finances”. The sense of which disincentivises work are largely be useful to explore the feasibility of urgency is explicit, and rightly so. Rather red herrings. One important point – and Youth Employment Partnerships in areas than merely drawing on the human despair one on which the Government has begun worst hit by unemployment, bringing brought on by youth unemploy-ment, the to make progress – is the need for more together the public sector, business and Commission frames the debate to illustrate incentives for schools to focus on students voluntary sector to tackle local barriers. A how this is an issue which affects everyone: who are most likely to become NEET. The national deal for reduced travel costs for blighting communities and pulling introduction of ‘destination measures’ and unemployed young people also seems to unrelentingly on the public purse-strings. ‘NEET indicators’ should help Ofsted judge make sense as we know prohibitive travel It is hard to think of any social problem the progress of schools. costs can be a barrier to work. which rival that of protracted youth Schools, charities and employers need One of the most interesting recommen- unemployment in terms of its detrimental to work together to encourage the long- dations is one which is light on detail. This effect on the population. Prince’s Trust is the recommendation that every young research shows the longer the period a person under the age of 25 who has held young person is unemployed for, the more Ginny Lunn agrees with a job for a year should be asked to mentor likely they are to experience “psychological the key message of this others to help them do the same. Our scarring”. The Commission has taken a report that the Govern- own Job Ambassadors scheme matches practical approach by gathering evidence ment must work with young people who have faced long-term to assess the causes of the problem to charities and employers unemployment and transformed their inform viable solutions. Many who are lives with help from The Prince’s Trust on schemes that are familiar with the scale of the problem with jobless youngsters, to give them will say that no corner will be turned proven to help young the inspiration, advice and guidance they until the economy begins to pick-up, people into jobs need to get into education, training or and that tinkering with welfare to employment. We know young people can work policies and education targets be excellent role models for their peers. are unlikely to have an impact. On the The report suggests the scheme should contrary, the Commission points to be opt-in rather than opt-out – and this is parts of Britain and other countries that an ambitious proposal but definitely one have developed impressive systems to explore. Overall, the report provides for getting young people into work many timely recommendations. The key in straightened economic times as message is the Government must work evidence that things can be done. with charities and employers on practical Even if the difficult economic climate schemes that are proven to help young means it is more challenging to help people into jobs. As always, more needs young people into jobs, increased efforts to be done to tackle youth unemployment, from governments, employers, and but many of the recommendations charities like The Prince’s Trust could featured would be a good place to start. mean thousands of young people moving from unemployment to a positive future. Ginny Lunn is director of policy and Indeed, last year more than three in four strategy at The Prince’s Trust young people on Prince’s Trust schemes moved into work, education or training – Youth Unemployment is available from: despite the challenging economic climate. acevo.org.uk/

06 www.charitytimes.com THE REVIEW

The UK Civil Society Almanac 2012 by NCVO

f I am asked what reference book do Paul Palmer says this Iyou have on your desk I always give and have done so for years a very short same is the civil society answer – the NCVO Almanac. Back in the reference book to mid-1990s I was privileged to be part of have on your desk, the team that produced the first Almanac. covering key issues When I look at that publication compared and topics from to the 2012 edition it does feel I have left behind a very different world. Then we sector blurring and just concentrated on the charity sector staffing to resilience and attempted to estimate the wider of the sEctor and the voluntary sector. impact of the The Civil Society Almanac begins recession with a clear definition of what is meant by civil society and then breaks it down into various constituent groups with appropriate figures on income, expenditure, numbers working and a useful comparative analysis to both the private sector and the UK generally. Some interesting comparisons include: “The combined income of all 164,000 for inflation (RPIX) the real terms beautiful or they are of course not reliant voluntary organisations in the UK increase in income over the decade has on government grants and particularly [£36.7billion] is of a similar magnitude to been £9.7billion (36%), whilst the real contracts. the UK revenue of Tesco [38.6 billion for terms increase in expenditure has been The Almanac is not just about finance 2009/10].” Or that the: “Voluntary sector £10.6billion (41%)”. with sections on the sector’s human paid workforce is roughly the same size The resilience of the voluntary sector is resources both paid and voluntary as the number employed in restaurant often commented on but if inflation does including trustees. The sectors appeal to and catering in the UK (around 770,000).” not fall then the sector is likely to face graduates being nearly double to that The Almanac is not just figures but also even harder times as the returns on its of the private sector perhaps displaying an authoritative commentary presented £23billion of cash even if held on deposit that the sector is a first career choice in a readable style with excellent graphics. are clearly depreciating fast. Certainly the rather than an after thought. Other It is written in a “pracademic” style with 2013 Almanac I suspect will paint an even sections include a useful discussion on evidence based references supporting a darker picture. Though at a micro level social enterprise, after giving the various readable portrait of the sector. There is the we have seen contrasting experiences definitions the Almanac notes: “This excellent overview and state of the sector between those who prepared for the estimates that nearly half of registered analysis given by Sir Stuart Etherington. worst and those who have “sleepwalked”. charities (45%), two thirds of companies Of course the 2012 title is misleading Interestingly, the Almanac quotes the limited by guarantee (67%) and nine given the data comes from accounts in Charity Commission research which tenths (90%) of community interest 2009/10, but once that is understood “suggests that larger charities – defined as companies are social enterprises.” the Almanac gives a picture of a sector those with incomes over £100,000 – have that is now suffering the full effects of been hardest hit with 79% affected, the Paul Palmer is an associate dean, direc- the recession. Interestingly, the effects very smallest charities, whilst facing their tor of the Centre for Charity Effective- of inflation take precedence. “What is own set of challenges, appear to have ness and Professor of Voluntary Sector clear from the charts is that the impact been more insulated from changes in Management, Cass Business School, City of inflation needs to be taken seriously the wider economy”. University, London in any consideration of trends income The Almanac analysis showing giving and expenditure, particularly as ‘raw’ by the public has grown 6.1% in real The UK Civil Society Almanac is avail- figures overstate growth. After adjusting terms perhaps indicate that small is able at: www.ncvo-vol.org.uk/almanac www.charitytimes.com 07 THE REVIEW

Principles into Practice by ACEVO, CFG & NPC

are that organisations should have: clear Seb Elsworth finds purpose; defined aims; coherent activities; this paper a useful demonstrated results; evidence for their read for those sector work; and knowledge of lessons learned. organisations looking The organisations should then be able to answer questions about each of these ar- to find out more on eas such as: “why do we exist?”; and “what communicating impact impact are we seeking against the overall and challenges the change we seek?” assumption that effec- This guide is designed to demystify the tive measurement and world of impact measurement and bring communication of the theory to life with examples and per- impact is something spectives from across the sector. It shows why leaders should resist the temptation that can only be done to ignore impact reporting by showing the by large organisations advantages which can come from aligning it with performance measurement. The case studies outlined in the report, from a range of organisations at very diffe- rent scales and at different points along the journey to impact measurement, highlight ody and Soul is a small charity which effective measurement and communica- a number of key lessons about implement- Bprovides a range of services to support tion of impact is not something that is ing effective impact measurement. people with HIV and their families. The either present or absent. It is a journey, and These include the importance of having organisation has ten full time employees, we’re all somewhere on that journey. No a clear strategy. Body and Soul clearly 200 volunteers and turns over around £1m one has reached the destination, and those saw that their funding environment was per year. Unlimited Potential is a demo- further along that journey have lessons changing in such a way that meant they cratically controlled social enterprise based to share. Principles Into Practice has been had to better understand and communi- in Salford which provides innovative com- published to coincide with the launch of cate their impact. They also include the munity based solutions to long standing the Principles of Good Impact Reporting. importance of securing buy-in from teams community problems. Ten years old, the At a time when there are a multitude of across the organisation. organisation has 35 staff and a turno- different methodologies being discussed, Crucially though, the case studies show ver of £1.5m. The fact that a these two the principles are helpful because they the advantages of making the effort to relatively small and young organisations remind us of the point of impact measure- better understand and communicate are amongst the nine to be selected as a ment and reporting. impact: from being able to help more case studies in this new publication from The Principles were created to show the beneficiaries and using resources more ACEVO, CFG and NPC make two important sorts of areas in which charities should effectively, to improved relationships with points. be able to explain what they do and why. founders and staff with a clearer sense of Firstly it challenges the assumption that There is no specific approach or methodol- purpose. effective measurement and communica- ogy proscribed. Rather the Principles are tion of impact is something which can only intended to remind us of the purpose of Seb Elsworth is director of partnerships be done by large organisations with lots of communicating our impact. And as well as and communications at the time and money to throw at it. knowing those things we should be able Social Investment Business who have Both aligned their relatively limited to talk about them. just published Investing for Good: resources to focus on integrating the The principles therefore help both www.thesocialinvestmentbusiness.org/ measurement of impact as part of the day charities, and those who care about what the-good-analyst/ job rather than it feeling like an excessive charities are doing, agree on a common and additional burden. agenda for how the organisation might Principles into Practice is available at Secondly, their stories clearly tell us that be judged. The headlines for that agenda www.cfg.org.uk

08 www.charitytimes.com THE REVIEW THE REVIEW

Famine & Foreigners by Peter Gill

ews coverage follows the dramatic and promptly signed up for an Open ment of hunger: in 1984, 7.9 million faced N– the tsunami, famine, or grisly civil University degree in business adminis- starvation and more than 600,000 died. war. Public perceptions in the UK of events tration, getting one of the best firsts in By contrast in a drought on Zenawi’s in the developing world are inevitably the OU’s history. He then went on to get watch in 2003, 13.2 million faced the skewed by that prism. And then it moves a masters in economics from Erasmus prospect of famine, yet Gill reports that on, leaving in the public mind lingering University in Rotterdam. only 300 people died (no-one at Oxfam images of starving children, or people Over the course of several interviews, believes the figure was that low). being plucked from earthquake-shattered Gill probes Meles’ thinking, and is clearly Gill puts this extraordinary turnaround buildings. dazzled by his intellect, largely giving down to a massive mobilization by the In his book, Famine and Foreigners: him the benefit of the doubt on his state (including using its own domestic Ethiopia Since Live Aid, Telegraph and commitment to (eventually) stepping resources, not just aid – Gill goes into ITV journalist Peter Gill sets out to explore down (he has been in power since 1995 some detail on the Government’s impres- the other side of events. In the ‘biblical’ and elections have been widely ques- sive social safety net programme) and beginnings of the 1984/5 famine, he was tioned) and engineering a transition to better reaction by the donors, who this the first journalist to reach the epicentre a less authoritarian system. time around, did not wait for TV images of suffering, helping to alert the outside Part of his admiration for Meles (whose before acting. world to impending disaster. record on human rights is far from spotless), The book’s main weakness stems In 2008 and 2009 he went back to bring is the transformation in Ethiopia’s manage- from its strengths. Gill’s journalistic himself up to date on the intervening commitment to telling Ethiopia’s story years, to find out what happened before through interviews and reportage is and after the TV cameras arrived, and how Duncan Green says that engaging, but comes at the expense of Ethiopians themselves understand the if you want to under- political analysis and subtlety, leaving tumultuous last 25 years of their country’s stand what’s happened him with little to say on its future, with history. our without Meles as its head of state. to Ethiopia since He brings a journalist’s craft to the And oddly, much of the last chapter is task, interweaving reportage and a confi- Geldof, Bono, and Live devoted to an interview with aid guru dent and eclectic grasp of the academic Aid, this is a good Jeffrey Sachs, of Columbia University, whose literature on the country. Through human place to start expertise on Ethiopia hardly rivals the many stories, he retells the history of Ethiopia’s wise local voices featured in the book. famines (a less infamous famine in But overall, Gill gets several important 1973 led to the ousting of Emperor things very right. Famine is the result of Haile Selassie), the transition years that politics and conflict, not drought. followed the 1984/5 catastrophe, the fall His focus on the role of states in of Colonel Mengistu and his notorious reducing the risks of disasters and then Derg government, and the rise of its responding to them when they occur, current Prime Minister, Meles Zenawi. is also spot on – Oxfam is revising its His approach reverses the media order thinking on this in a similar direction. of things. Aid agencies (both big northern If you want to understand what’s governments and NGOs like Oxfam, on happened to Ethiopia since Geldof, Bono, which he has written a largely sympa- Live Aid and the rest, this is a good place thetic book, Drops in the Ocean) are not to start. angels, but often bumbling bureaucracies whose actions are driven by a complex Duncan Green is head of research at mix of altruism and institutional needs. Oxfam GB. His blog, From Poverty to In any case, centre stage belongs to Power is here: www.oxfamblogs.org/ Ethiopians themselves, and in particular fp2p/ the Ethiopian government. Meles emerges as an extraordinary Famine & Foreigners is published by figure, who became head of state at 36 Oxford University Press priced £9.99

www.charitytimes.com 09 THE REVIEW

Writing your charity’s investment policy by CFG an CIG

he Charity Finance Group (CFG) and investment manager must follow when background information and a statement Tthe Charity Investors’ Group (CIG) have taking investment decisions on behalf of as to the financial objective, confirmation teamed up to plug a recognised gap for the charity. The template and examples of investment powers and governance. charities wrestling with the challenge of included in the guide expand on these The guide explores a charity’s writing their investment policy and is very issues. investment objectives, including the much a practical response to the requests Usefully the guide notes that the level motive for making investments, return made by charities wanting to learn from of detail in a policy statement will vary in expectations and preferences and time the experience of other charities whilst different charities and is not necessarily horizons, and attitudes to and tolerance of complying with best practice. dependent on size but what is crucial is different types of risk. The guide includes a model template that it provides a sufficient steer to inform This builds on Charity Commission and worked examples but it is not a investment decisions. guidance. It reminds that charities must prescriptive guide and nor does it provide The guide template involves a think through their liquidity requirements. specific investment or legal advice. systematic description of the areas to It also notes that a charity should specify The guide is intended for those respon- cover in a charity’s investment policy any ethical investment policy adopted and sible for developing and writing their statement. raises key issues for consideration. charity’s investment policy and trustees, It identifies that the introduction should The guide also covers investment who have overall responsibility for the set out the background to the investment instructions, reporting requirements and investment of their charity’s funds and policy and could include general performance monitoring. questions are designed to prompt conside- The authors state that while a flavour ration of the areas that might be included of the diversity of approaches can be in a charity’s written investment policy. James Bevan says this conveyed in the examples provided, these The guide notes that the content and paper is an invaluable cannot be comprehensive. exact structure of a written investment and welcome guide to Nevertheless it is clear that the policy will vary from charity to charity to examples provide an illustration of what charities who have reflect different investment objectives a charity’s investment policy statement and needs, and therefore not all of the struggled with writing might look like, including six worked questions will be relevant for every charity, their investment policy examples: a grant-making foundation, or need to be addressed in written policy operational ethical charity, a permanent at all, and similarly the level of detail, endowment, a cash charity, a pooled family length and format may vary. charitable trust and a PRI local foundation. Accepting the need for a written Importantly, each example includes investment policy, the guide reminds a wide variety of different underlying that the Charity Commission have conditions and factors, so that readers identified that a charity’s investment can adopt a pick-and-mix approach to policy will usually include the scope deciding what they may want to include of its investment powers; the charity’s in their own policy statements. investment objectives; its attitude to risk; This guide will be an invaluable and determination of the assets available welcome help to charities who have for investment, timing of returns and struggled with writing their investment the charity’s liquidity needs; the types policy. of investments it wants to make, and The CFG and CIG should be that may include ethical considerations; congratulated for this useful, succinct and decision taking and takers; management well thought through guide. priorities and reporting. The guide also reminds that for James Bevan is chief investment officer charities using investment managers, at CCLA Investment Management the investment policy must cover the responsibility and remit of the investment Writing your charity’s investment policy manager and the principles that any is available at: www.cfg.org.uk

10 www.charitytimes.com THE REVIEW

Social Enterprise Schools by Andrew Laird & Justin Wilson

he Social Enterprise School report took Tme a while to digest initially, mainly Lydia Frempong finds because of the complex jargon to contend this report leaves out with until I was able to get to the root of many facts, But the argument regarding the consideration ultimately has some of UK schools being run using the social good examples and enterprise model as a way to improve the standards of education for young people presents a strong aged between 4-16. case for the social The report was written by three enterprise model consultants whose foundations are firmly getting involved in established in policy, education and Social education Enterprise. The angle is geared towards a clear conviction that social enterprise schools are the positive way forward to benefit and improve educational standards in the UK. As well as increase the selection of schools for pupils, promote accountability of teachers; provide incentives to achieve good results in attendance figures and the exam results. Within the report statistics My area of concern is what happens observed leading to Islington being the provided, proves that for profit schools if the level of achievement in education most improved London Boroughs. Ofsted present an incentive for the schools to declines, what will happen to the employer rated outstanding overall effectiveness. run more efficiently. For example 45% of ability factor regarding the young people The report provides good examples of for secondary schools are already open as of tomorrow’s future. What we truly need profit lead schools in Sweden and USA. Academies, or in the process of becoming to understand from the report is what the I am of the opinion that the best way one. defining factors are leading to Free State forward would be to trial out the social This statistic illustrates the UK is leaning schools under performing. enterprise model to give it the best towards for profit run schools, whereby There are a number of factors to chance of working. A social enterprise teachers are given more autonomy consider, that is, the motivation of model would mean that the education to manage their schools, have more the teachers, the choice of subjects, system would have to adhere to the responsibility for the way their educational identifying learning needs early on, educations standard and support of their establishment is managed. The set up is an training and understanding of social pupils, positive educational environment incentive to for both teacher and pupils to and environmental circumstances regardless of area, social awareness and achieve good results. young people are subjected to, cultural surplus should be fed back into the school. The main dilemma the report highlights backgrounds and diversity of students. Fairness in education is what our is that the standard of education in the I would like to been informed of the schools must continue to strive for. There UK is dramatically decreasing; pupils are real facts of why we are suffering a decline is a place for different types of schools. leaving school without the relevant key of education in our schools. You are left Teachers within Free State schools should skills to be employed or to move into here to make my you own assumptions. be well remunerated to encourage higher education. The report though provides an excellent them to perform and the opportunity to The UK is ranked 25th for reading, 28th case study of educational services develop their skills. for maths and science. According to a being outsourced to improve school survey constructed by CBI in May 2011 programmes. Cambridge Educations were Lydia Frempong is a life coach and 42% of employers were not satisfied by contacted to run educational services founder of Butterfly PR the basic use of English by school and in the London Borough of Islington, the college leavers and more than third were value of the 6 year contract for the value Social Enterprise Schools is available at: concerned with the basic numeracy skills. of £105 million. Improvements were www.policyexchange.org.uk www.charitytimes.com 11 THE BUDGET AND THE BIG SOCIETY

The Budget and the death of The Big Society

Andrew Holt says the for business, with little recognition of the UK Government to exempt charitable 2012 Budget finally put the contribution that the charity sector donations from the caps before they the concept of the Big makes.” And more starkly, Bradshaw added: can do any damage to third sector “It appears recognition of the value of the organisations.” Society to rest sector is falling off the agenda.” And Dan A point endorsed by Sir Stephen Bubb, Corry, chief executive of New Philanthropy CEO of ACEVO, who noted: “It’s clear that Capital, quipped: “the politically savvy if the cap is implemented as proposed, it uch debate has surrounded the Chancellor is not a fan” [of the Big Society]. will severely affect the level of charitable Msector and the recent budget, but It is Osborne’s scrapping of the new giving in the UK. The Chancellor must one issue becomes crystal clear: it sounds cap on tax relief for major donations to exempt relief on charitable donations from the death of the Government’s Big Society. charity, announced in the budget, that is the cap immediately to avoid undermining Cameron’s big vision, which has spluttered a step that reveals a huge gapping hole the third sector and the beneficiaries who on for some time, was put to rest and out in the Big Society rhetoric and the real rely on its services.” of its misery by George Osborne’s budget. motivations of this government. When it As a result a group of senior third sector The Chancellor showed that when it came to Osborne’s economics and the Big leaders and philanthropists met with comes to the Government dealing with Society vision, the former is incompatible Nick Hurd, the minister of Civil Society, matters of importance, the sector gets with the latter. It also makes a mockery of to press him for action on the tax relief nothing more than a passing mention. Osborne’s budget last year, when he stated cap, expressing in the strongest terms its As Caron Bradshaw, CEO at CFG, he wanted to encourage wealthy people concern that the proposed cap will have summed it up: “This is very much a budget to give more to charity. the unintended consequence of reducing the level of philanthropic donations to Giving as tax avoidance charities, community organisations, higher As Martin Sime, chief executive of education institutions, arts institutions and the Scottish Council for Voluntary other non-profit bodies. The meeting is Organisations, astutely summed it up, the unlikely to do any good. cap effectively brands charitable giving as tax avoidance. In Osborne’s world, this is Big Society Capital probably how he sees things. Though a recent twist in the Big Society Sime expands further on this point: debate, was the arrival of the £600million “To risk reducing donations to charity or backed Big Society Capital, promoted by making giving more complicated is a very government mandarins as an important dangerous move which flies in the face of milestone in the Government’s drive to the UK Government’s pledge to promote grow the economy and build a bigger, philanthropy. These changes could stifle stronger society; and in turn the Big donations from wealthier people whose Society could be said to have had life generosity is helping charities to continue breathed into it. But this would be a supporting the most vulnerable members misreading of the situation, as £600million of society when their budgets are being may be coming the sector’s way via the squeezed like never before. BSC, but this has to be compared to the “It could seriously affect larger £4.5-£5.5bn that the sector is losing organisations which depend on major gifts through cuts during the course of this from philanthropists and the ripple effect Parliament. could also see smaller, local organisations David Cameron naturally played-up lose out as charitable foundations will the new organisation at the launch. “Big Photo by bisgovuk have fewer funds to distribute. We urge Society Capital is going to encourage

12 www.charitytimes.com THE BUDGET AND THE BIG SOCIETY

Photo by Nick Atkins Photography Sir Stuart Etherington was naturally unimpressed. “This note only muddies the waters further. It reinforces our concern that this policy is half-baked at best. Major donors are facing at least six months of confusion and charities are already losing gifts as a result. The Treasury should act more quickly and drop the proposed cap on gift aid tax relief.” John Low, chief executive of the Charities Aid Foundation, was even more scathing. “The Government’s handling of this has been shambolic. Far from clarifying matters, it has created further confusion among charities and donors. That’s no way to fulfil its vision of a Big Society.” In reality though, the demise of the Big Society simplifies matters. The sector no longer needs to pretend, as it has in some quarters, that the Government has it at its heart. It has probably been naive to view the charities and social enterprises to prove returns low.” Government as their business models – and then replicate Give it Back George really caring about them. Once they’ve proved that success The unhappiness at Photo by HM Treasury the sector anyway. in one area they’ll be able – just as a the Budget measures Charities, social business can – to seek investment for has led to the launch of the Give it Back enterprises and voluntary organisations expansion into the wider region and into George: Drop the Charity Tax, a campaign have to deal with the Government the country.” led by the NCVO, CAF and the Philanthropy in a real, everyday, level but can face Justifiably, Sir Stuart Etherington, NCVO’s Review. The campaign against the tax the fact that the sector is not a top chief executive described Big Society changes has attracted more than 1,500 government consideration, and never Capital finally become a reality as “a long supporters including hundreds of charities will be. and arduous journey”. as well as individuals and donors. Though, The Big Society in this way can be Professor Cathy Pharoah, from Cass unfortunately, this is likely to be a futile seen as the Conservative Party trying to Business School’s Centre for Charity Giving campaign. Like Margaret Thatcher, George square the circle of its small-state, free- and Philanthropy noted: “Big Society is unlikely to be for turning. market philosophy, with an add-on and Capital will face the same fundamental This was highlighted further when afterthought of concern for wider society. challenge as other top-down initiatives in a policy briefing from the Treasury It is not surprising that it has been cast off the history of social investment, namely confirmed charities’ worst fears about the into the night. how to deal with the tensions between £50,000 cap on tax relief on charitable According to Conservative bloggers social and economic returns.” donations. A Treasury issued document and commentators David Cameron’s And more importantly, and at least confirmed that the cap on tax relief often erratic adviser Steve Hilton was in part flying in the face of the idea of the imposed on donors will include Gift Aid behind devising the Big Society as a Big Society, Pharoah added: “It will not claimed by charities, in addition to the concept. But as he recently left Number be able to help small innovative social personal tax relief available to higher rate Ten it looks like he took the Big Society projects dealing with high needs and taxpayers. Moreover, it raises fears that idea with him. high risk clients or service areas where charities will face months of uncertainty social returns may be high and economic while ministers consult on the changes. Andrew Holt is editor of Charity Times www.charitytimes.com 13 COLUMN

The Local versus the Big Society

community groups, at a time when they The Local Society face increased demand for their services. Despite Statutory Guidance not to make n the three months since I took on the disproportionate cuts – some councils Irole of chief executive at NAVCA, many still are. Witness Nottinghamshire. people have said to me how tough it And grant funding continues to be must be to lead a charity in the current hardest hit. Grants give most help to the climate. My response is that actually I’m smallest charities and groups. The very optimistic about the future. National Audit Office also says grants are Yes, help for local charities and often the most efficient use of money. But community groups is needed now. Yes, NCVO’s Almanac shows public sector we are in an age of austerity. Yes, the grant funding fell by £500 million between relationship between state and charities 2007/08 and 2009/10. For years the Local is being shaken up. But underneath all Grants Forum has warned about the dam- this, looking at the long term future, The Big Society will not work age this does. But nothing has been done there’s a growing need for – and unless the Local Society works to reverse this. NCVO’s Karl Wilding made understanding of – the local voluntary and the Government should a great point recently that the Government sector and what we do. grants to charities were dwarfed by those understand Local Society can Wherever I go across the country, I awarded to the private sector. find truly inspirational people devoting have a rosy future, but much Bad commissioning continues to themselves to helping others. Charities help is needed now, argues Joe threaten the local voluntary sector. that combat homelessness, crime, Irwin Locally, contracts are often parcelled poverty and injustice. Those that give a up and made too large for small voice to the voiceless. Local activists who organisations to bid for. Or we see local in a thousand ways bring communities commissioners get a bright idea to closer together. And yes the work of contract out work previously carried out ‘umbrella’ support and development by grant funding a local group. Too often charities that nurture, train, advise, encourage and provide this ends with the local group being unable to bid or losing out practical aid to all these groups so they can fulfil their purpose. to an organisation more interested in the contract than the local And there’s a growing demand for the work of local voluntary community. Nationally, the Work Programme has highlighted all organisations. People want the human touch that charities that can go wrong with sub contracting if the big business does can bring. As distrust in national politics, big media and big not properly value a local charity. businesses has increased, the appetite to support and benefit Without help now, many charities will not be around to help from the services of local charities grows. Politicians realise this communities in the future. This is why I called the budget a and whatever the merits of labels like the ‘Big Society’ and ‘Blue squandered opportunity. There were some welcome measures but Labour’, the ideas behind them are a response to the public mood. there was not enough to help Britain’s hardest hit communities. Politicians want to be part of this. Every Minister I meet says that Prior to the budget NAVCA wrote to the Chancellor asking for more decisions are going to be taken at local level – no bad thing funding focussed on the most deprived areas. in this country, which has been described as the most centralised This is the first time since the 1960s that there is no government state in the EU. We also have Chris White’s Private Members’ Bill regeneration programme to support areas of deprivation We (now an Act) to put social value into public sector contracts, the believe it is a low-cost way to quickly inject much needed work on Early Intervention championed by MPs Iain Duncan resources into organisations working in these areas. It could Smith and Graham Allen, the Best Value Statutory Guidance saying certainly be done with less than the £250 million found to re- no disproportionate cuts to the voluntary sector. Now I know that introduce weekly bin collections. The Big Society will not work these haven’t transformed the charity world overnight but they all unless the Local Society works as well. The Government should have the potential to make a huge difference. understand the local society can have a rosy future but help is So I’m optimistic for the future. But we need help now to make needed now. sure we don’t lose the work of charities that are precious to local communities. Public sector cuts are hurting local charities and Joe Irvin is chief executive of NAVCA

14 www.charitytimes.com COLUMN

The politics of the Big Society

win contracts to provide government The Big Society services. In reality it appears that many charities are not able to compete avid Cameron’s Big Society idea, on a level playing field with bigger Dre-launched yet again recently with private sector businesses able to take Big Society Capital, has been widely on more risk when they bid for the lampooned ever since its creation. same contracts. Its apparent promise of flourishing The Work Programme once tipped charities and community groups has to offer charities more work in helping not materialised. the unemployed get back to work has The Big Society was instead clearly not delivered anything like the level designed to deal with the difficult of referrals ministers once promised political legacy of Margaret Thatcher’s and charities are beginning to pull infamous “There is no such thing as out highlighting the frustrations and society” line and to provide political Gareth Thomas cost of a Programme that isn’t working cover for the deep cuts in funding to says the scale of the cuts for them or for many unemployed people. local and national government which in government funding, With the launch of Big Society Capital, David Cameron and George Osborne are a continuation of Labour’s policy a series of poor commissioning pushing through. to create what we called the Social NCVO chief executive Sir Stuart decisions and the collapse of Investment Wholesale Bank, there is a Etherington has talked of “a perfect trust in the Big Society have danger that this relatively small amount storm” of cuts and rising costs creating a contributed to a sector facing of money is being oversold as a magic toxic mix of circumstances for charities the toughest of times bullet that will solve the huge funding with increased demand for their services, problems facing charities and voluntary growing financial pressures and an organisations up and down the country. unprecedented fall in income. By the time of the next election it is Strikingly charities have been clear there will have been further major disproportionately targeted for cuts. The now notorious reductions in funding for charities, that Local Government will Conservative-led Nottinghamshire County Council is seeing its not have the financial muscle to help local groups in the way funding cut by 8% yet has cut funding to the county’s charities by it once did and that most major government contracts will see 34%. Even the flagship Big Society charity MyGeneration run by at best a secondary role for the charities sector; not as prime Big Society Ambassador Shaun Bailey has had to close “due to lack contractors but more as subcontractors. of funds.” As Ed Miliband has recognised, for too many people the In a secret report for the Cabinet Office leaked last month an universal ambition to live in strong communities in a nice analysis of bids to the Transition fund found that charities and neighbourhood feels ever more distant. community organisations are set to have lost at least £1billion Charities will undoubtedly have to have a bigger role to play and possibly as much as £5.5billion this year; as a direct result of in helping local services become more flexible and responsive. government cuts. If we want to strengthen the resilience of communities in places Two-thirds of the charities most desperate for help to keep as diverse as Hackney and Witney then we will need to find new services going were in the 25 most deprived areas while charities ways to finance more charity-led community and social action, helping the unemployed back into work were facing an average we will need to engage business more systematically and 50% cut in their funding. Indeed community and voluntary groups encourage more individual enthusiasm for community service in the 20 poorest areas of England lost 40 times as much funding than before. as those in the richest 20 districts. The scale of the cuts in government funding, a series of The changes to tax relief for charitable donations signalled poor commissioning decisions and the collapse of trust in in the Budget are set to cause further uncertainty and financial David Cameron’s Big Society brand have all made this task problems for charities. far harder. As the scale of government funding cuts has become clear, so ministers have talked up the opportunities for charities to Gareth Thomas MP is shadow minister for civil society www.charitytimes.com 15 COLUMN

25 years of financial leadership

and facilitates a deeper connection with The changing sector the organisations they represent. What we’re saying is if you have a financial here are those who might question leadership role within your charity be Tthe wisdom of celebrating a 25 it as a treasurer, volunteer or financial anniversary in these troubled times, manager then CFG is here to support you. when belts are tightening and the sector Our new name – CFG – better reflects is challenged on a daily basis. But, I think our role as the charity that drives up it’s right to recognise achievements from standards in charity finance and the the past and use the moment to examine wider work we do with all finance and our role and look to the future. resource professionals in charities – Baroness Hayter of Kentish Town, although we are a membership body, a long-time champion of charities, our public benefit role in improving generously hosted our 25th anniversary standards in charity finance is the celebration at the House of Lords. We CARON BRADSHAWsays 2012 purpose of our existence. welcomed so many members, subscribers is a significant year for the CFG, We will continue to place huge and sector representatives, many of marking 25 years of supporting importance on the need for greater whom have been constant companions coherence in legislation and government finance professionals in the and supporters of CFG over the years, rhetoric. We have invested in policy that at times we were bursting at the sector, signals the intentions and public affairs work to strengthen seams. At the reception Lord Phillips of CFG going forward, and the our position in understanding and of Sudbury gave an impassioned challenges that hold in store representing the needs of the sector speech about the role of charity in for the future in matters which impact upon today’s society. transparent, efficient and effective 25 years ago a small group of like- financial management. minded finance directors formed CFDG In my view inspiring financial – the Charity Finance Directors’ Group. At leadership is critical for charities and that time the professionalism of the sector was patchy, the rules the wider elements of civil society at this time of unprecedented of engagement unclear and the importance of strong financial fiscal contraction. So during our 2012 we will be focusing on leadership and management within the sector overlooked. improving understanding of and reporting on impact, and Forming CFDG helped to change that landscape. How things attempting to crack the perpetual nut of a lack of financial have changed: increasingly financial leadership comes from capability across the sector. One challenge is how to reach highly-skilled and professionally qualified individuals, charities those for whom finance is a second language – those who are subject to a vast array of rules and regulations and arguably need us most but are least likely to view us as inspirational financial leadership plays a central role in effective necessary to their existence. and impactful charities. After 25 years we’ve come a long way – but there is more for Finance management in charities has changed – the role CFG to do to ensure that confidence in the financial management is more broadly based and many of those who take lead of the sector instils trust and leads the way in transparency, responsibility for the charity’s finances are not called ‘Finance efficiency and effective financial management. At the House of Director’. Not all our members – or those outside the membership Lords reception, Ian Theodoreson , chair of CFG Trustees, referred for whom we are a first port of call for information and access to to the work and purpose of the sector as being “a precious skills building – are Directors. They are Finance Managers, heads commodity - the glue that holds our communities together”. of operations, of resources – but what they all have in common is Together CFG and finance leaders within charities have a responsibility for financial matters. key role, using financial skills, finding innovative ways to release Charity Finance Group – CFG – says very straightforwardly resources for the front line activities and harnessing their that we are for all those who have financial responsibility in their passion (yes, finance professionals can be passionate) for charity, whatever their job title. Dropping the ‘D’ does not signify the work of our charities. a move away from senior finance professionals. Absolutely not. Instead it embraces the broader church of members we now have Caron Bradshaw is CEO of the Charity Finance Group

16 www.charitytimes.com COLUMN

How charitable is the Government?

Government giving Prior to the Budget, I would have given the Government six out of 10. s I write this report card – nearly While more action was needed, I would Aa year on from the launch of the have highlighted the various cases of Government’s Giving White Paper – I’m real money following good intentions, still somewhat shell-shocked following with the launch of the Social Action and the Chancellor’s recent announcement Innovation in Giving Funds, matched in the Budget of a cap on tax relief for funding programmes and investment in major donations, which will inevitably modernising infrastructure. cut the number and size of major I would also have pointed to George donations to charity. Osborne’s Budget in 2011, in which he Therefore, it is almost with a sense of announced a raft of measures to improve nostalgia that I recall the not so distant and simplify tax incentives for giving, days when David Cameron declared The positive achievements and granted though, the detail of how these that the Big Society was his ‘big passion’ progress made in the past year initiatives (such as the Inheritance Tax and cabinet members competed with have been threatened by the incentives for legacies and the ‘Gift each other to prove their philanthropic Aid’ small donations scheme) will work Chancellor’s shock announce- credentials. (“I’ll see your ten point plan in practise and the impact they will and raise you a Giving White Paper”). ment in the Budget to impose a have on donations is yet to be seen. If asked a year ago, I would have cap on the tax relief available to There are, of course, a number of other said that the attention given by the philanthropists for major dona- measures waiting in the wings that Government to giving was very welcome, tions, warns HANNAH TERREY we believe could have an even more very encouraging, perhaps even transformational effect on giving. unprecedented, and I would have happily We would like Government, for awarded it eight out of 10 for intent. example, to allow a universal declaration Since then, the importance of to ensure that Gift Aid is fit for the future promoting giving has become more, not less, critical for charities of digital giving. The long overdue introduction of living legacies on the ground – as the sector faces an unprecedented credit would also help to unlock additional philanthropy and encourage crunch, with swingeing central and local government spending greater engagement with donors during their lifetime. cuts and an increased demand for their services. However, all of the positive achievements and progress made I know that there are those in the Government who are in the past year – and the chance to celebrate these at the genuinely committed to building a stronger culture of giving Giving Summit – have been fundamentally threatened by the in the UK. Indeed, certain government departments have been Chancellor’s shock announcement in this year’s Budget that he working hard on this for years – long before the Big Society plans to impose a cap on the tax relief available to philanthropists spotlight shone on them. for major donations. And, while some of the catchy ministerial initiatives, for instance Not only will this policy put at risk some of the £1.4bn donated the ‘year of corporate philanthropy’ and the Giving Summit, have to charities each year by wealthy philanthropists, but, perhaps proved more difficult to deliver than conceive, there has clearly more worrying still, is the message that this sends to donors, the been a significant amount of energy and enthusiasm put into charitable sector and the public about the Government’s distrust taking the Coalition’s promises forward. of generosity. Responding to the Government’s rhetoric on giving, we at It is clear from the last few weeks that a healthy culture CAF set out what we believed the Government should do to of giving cannot thrive in isolated departments. This agenda promote charitable giving and philanthropy. While, of course, must, instead, be embedded across all areas of government. the sector needs to remain independent and apart from The Government must act quickly to reverse this policy decision. government, it is critical nonetheless that ministers play a key Without this, it seems the Government is heading towards role in three fundamental areas: leadership, investing in effective a ‘fail’. infrastructure, and ensuring a supportive tax environment. So how has the Government fared on these three counts? Hannah Terrey is head of policy at Charities Aid Foundation www.charitytimes.com 17 COLUMN

The sector and Big Society Capital

Repaying the money through Big Society finance sustainable business models will be key for both the BSC and the organisations fter the post-Budget PR blunders of involved. Many of the intermediaires the APastygate, Fuelgate and selling ‘nosh BSC will service have operated for over for dosh’, it is interesting to see the Prime 10 years but growth has been stifled Minister choose to resurrect his favourite by the lack of return on investment. hobby horse, the Big Society project. Cass Business School’s Professor Cathy It’s all in the timing and launching Big Pharoah believes the overall impact in Society Capital (BSC) only a few weeks some sections of the community will after the Chancellor announced a tax be limited. She sees a trend where the relief cap on charitable donations was intermediaires favour “a bias towards an obvious attempt to diffuse the row safe lending” and will want “market among the major sector players shouting rates of return while doing some Give It Back George. Elliot Lane looks at the social good”. Fundamentally, the BSC is a good interestingly timely launch of This will inevitably isolate “small thing: it raises the profile of the third Big Society Capital, what it innovative social projects dealing sector; it allows a proper channel for with high needs and high risk clients” means for the sector, who is like- social investment initiatives; and offers where the social returns are great but longevity to community projects and ly to benefit, gets the sector’s overwhelm the low economic returns. promotes innovation. verdict, and asks whether with Who could benefit from this largesse? But the devil is in the detail. Its use this venture the goalposts have Dan Corry of Philanthropy Capital of £400m from dormant accounts and been moved by the Government sees social enterprises to be the main a further commitment of £200m from benefactors because overall the model the Project Merlin banks is a healthy is underpinned by achieving a profit. injection to give a sector “already starved Examples he highlights are the bus of working capital”, as the NVCO put it. company HTC and leisure centre operator But the impression that all this cash has just been laying around, GLL. These are safe havens for investors and well-established hidden behind the back of the sofa, and is now free to spend isn’t enterprises which have a wider consumer focus to them. The fooling anyone. question is do prisoners, alcoholics and deprived children look so Philanthropy under this Coalition government must come at attractive on paper? a price. Over half a billion in the investment pot is a substantial The BSC is not a bank, it is a funding pool which offers loan sum, but it is suddenly dwarfed once weighed against the size finance. Money will given by results and need to be properly of the problem. Recent Cabinet papers leaked to the press audited and qualified. Lawyer Eversheds said this was an ideal show charities and community organisations could lose up to opportunity to re-engage with alternative financing instruments £5.5billion this year as a direct result of government cuts. like social impact bonds (SIBs) must be “commoditised quickly” The most vociferous critic of the new venture was Unite and the sector must “think big” so momentum is not lost. But claiming the PM was “breathing life into an exhausted corpse” with only one SIB in the market, the glare will turn on the BSC and being “disingenuous” about how the £600m will be spent. intermediairies in the short-term. “Funding can only be lent to charities if there is a case made that a When this concept was first mooted under the last Labour profit can be generated,” said the union. government, Gordon Brown envisioned a Carnegie-like legacy for In a more measured response, Social Investment Scotland the City and the contentious rich to show they cared. Sir Ronald wanted to assess the conditions on how funding would be Cohen, the founder of Apax Partners and godfather of the venture allocated “including lending criteria, application process and capitalist community, has stuck by his commitment and worked turnaround times for distribution funds”. Another area yet to with the Coalition to achieve its aims. It is a serious company. The be clearly defined is the interest rates charged. John Low of the worry is it seems to be the goalposts have not just been moved, Charities Aid Foundation wants the BSC to “be clear about the but snapped in half. social impact its investments are having and sometimes this will mean accepting a lower financial return”. Elliot Lane is a freelance financial journalist

18 www.charitytimes.com

THE CHARITY TIMES INTERVIEW

Profile: Stonewall chief executive Ben Summerskill

The fine art of campaigning

Ben Summerskill has turned around the gay equality charity Stonewall to become a leading campaigning organisation and is hoping to add to his list of Campaigning successes. Andrew Holt met him

fter overseeing a number of successful campaigns, Stonewall hope to be in a campaign of this sort.” Achief executive Ben Summerskill is on the campaign trail He also dissects opportunity in the statements from some parts once more. The gay equality charity chief sees gay marriage of the right-wing media, who have stated in the recessionary as his present focus and the Government’s promise of a gay environment, this is not the time for Gay Marriage to be a marriage consultation is potentially another campaign success Government priority. “When you look at that argument, it is very in the making. different to saying we are completely opposed to this measure.” “We are delighted that the Government has announced its intention to move ahead, securing a White Paper Consultation,” Political campaigning he notes, before analysing the situation in more Machiavellian Summerskill though is not afraid to come out fighting when detail. “The most important thing tactically is to have secured the situation needs. At the launch of ‘Some People Are Gay. Get the support of David Cameron. The reason this is important, Over It!’ adverts at the beginning of April on 1,000 London buses and often overlooked, is that we have to be realistic. Everything linked to Stonewall’s equal marriage campaign, Summerskill said: we have achieved legislatively, we have had to get through “In recent months Britain has been subjected to vitriolic political the House of Lords; even with a Labour Government with a campaigning from people who want to impose their 19th-century big majority.” values on 21st-century society.” This open, realistic political approach is one of many Who was he targeting here? “We always endeavour not to Summerskill’s strengths and has been a key factor in deve- personalise things. But you only have to go on Google to find loping Stonewall from a charity on the brink of collapse to senior clerics and slightly more excitable political figures, not a leading campaigning charity it is today. “Having an alliance all conservatives – that is to an too easy caricature – to find in the House of Lords is critical to make anything happen,” such people. Some have of those have compared those of us he confesses. “But having a cross-party approach in the campaigning to bigamists, polygamists, abortionists, bestialists, Commons [on this issue] is a good start. We are where we and, I think most charity CEOs can identify with this: you do

20 www.charitytimes.com THE CHARITY TIMES INTERVIEW

get this stuff thrown at you. Our priority is to keep our eye good practice among major UK employers which gives on the prize.” Summerskill the most satisfaction. This project has grown from Summerskill and Stonewall have made significant progress 35 to 605 members, employing 5.7 million people between them, in shifting public opinion on gay issues. “Our starting point ranging from organisations as diverse as IBM, Tesco, Barclays, the is evidence, not just passion,” he says. Soon to be published Department for Communities and Local Government, Barnardo’s Stonewall polling on public attitudes reveals this shift: the number to all of Britain’s armed services and MI5. “We have been very keen of people who think it is right to tackle prejudice against gay to talk to an audience beyond the 6% of the population who are people has risen from 73% in 2007 when the last survey was done, lesbian, gay and bisexual.” to 82% in 2012; support for civil partnerships has increased from And Stonewall’s Education for All programme, launched in 2005 68% to 81%; and support for same sex couples adopting has gone to help tackle homophobic bullying in Britain’s schools, is now up from 42% to 58%. “These are real signs that public attitudes supported by 70 major teaching and children’s organisations are moving,” says Summerskill. He put a great deal of weight and importance behind this poll. “Two years ago to the trustees, I said Knowing your donor if this [survey] did not show progress, then I am not the right Stonewall receives no public funding and raises all its money person to be doing this job.” through donations, sponsorship and fundraising. Within this there He succeeded Angela Mason as chief executive in early is a philosophy behind the charity’s approach. “We treat donors 2003, and had to turnaround a charity on the brink of extinction. like Sainsbury’s treat customers with a Nectar card, so we get to “I admire Angela hugely, but solvency was not one of her know them. And we have made everyone within the organisation bequests,” he says choosing his words carefully. “The first thing responsible for the bit of the business that they work in. So there I did was insist there was nothing wrong with being businesslike are very few people who are not managing an individual research running a charity, because we were about to go bust.” programme.” Alongside this, the team is sustained by a commit- At this time, its income was £1.4m, during which it ran a deficit ted band of dedicated volunteers. “We shape messages so other of £117,000. By last year the income had risen to £3.8m, with people can use them. “ impressive reserves of £2.7m, and with the end of Stonewalls’ Stonewall though founded in 1989, was not given charitable financial year in September this year income will be around £4.1m. status until September 2003. Summerskill says of the timing: “The The aim is to grow to £5m by 2015. “We have done something of Charity Commission had changed its campaigning guidelines and a Holy Grail of the private sector; we have continued to grow the were at that point, relatively supportive, and we could argue we organisation during a recession.” Moreover he expanded its work were a cross-party organisation.” from parliamentary lobbying into other fields. In 2006, Summerskill was appointed a Commissioner on the Britain’s new Equality and Human Rights Commission, but in July Successful campaigns 2009 resigned citing differences over leadership with its chair Here Summerskill has since led a number of successful campaigns Trevor Phillips. Five other commissioners resigned at the same over his tenure. He successfully campaigned for repeal of time. “It was all a bit sad,” he says on reflection. “Trevor is a very Section 28 of the Local Government Act; the introduction of nice, sweet man, a brilliant television producer, but he had never Civil Partnership for lesbian and gay people in the UK; and the run anything. I was chair of the Audit Committee and I was unable introduction of 2007 protections against discrimination in the to give assurance to the secretary of state that the Commission provision of “goods and services”, covering areas from healthcare was being run with appropriate probity.” and housing to hotels and holidays. Summerskill’s career began in the restaurant trade, where he Moreover, he also led a successful parliamentary campaign in was operations director from 1987 to 1990 with Kennedy Brookes, 2007-2008 for the introduction of a criminal offence of incitement a hospitality company, and was responsible for a £18m turnover at to homophobic hatred and a campaign in 2009-2010 to enable the tender age of 26. He become a journalist in 1990, rising to the gay people to celebrate civil partnerships in religious premises. position of assistant editor of The Observer in 2000 after having But he modestly attributes these successes to the team not his worked as media editor for Daily Express and the London Evening leadership. “It is more about having a remarkable group of people Standard, and other magazines such as Time Out. we have, who are quite fierce and passionate about our ambitions Summerskill saw becoming Stonewall CEO as bringing together for helping people. We don’t have a lot of passengers, and we try his interest in politics, communication and his business skills, but to reward people better than they would be elsewhere in the reveals his biggest anxiety moving over to the position was could third sector.” he do it properly? What has happened in the years since, shows he It is the Stonewall Diversity Champions programme, promoting need not have worried. www.charitytimes.com 21 Advertorial Making a stand against unreasonable claims

By David Bonehill, Claims & Risk Services Director, Ecclesiastical Insurance

Recent research* carried out by Ecclesiastical in the charity sector found that 27% of those questioned listed public liability issues as their single biggest area of concern.

While any organisation should understand its moral and legal responsibility to claimants to whom it has caused injury, a claims culture is being fuelled which encourages people to believe that they can make easy money through exaggerated, speculative or even fraudulent claims. Stimulating the growth in claims is the proliferation of FREE Claims Management Companies (CMCs) which aggressively for market the concept of blame and the right to compensation, charities pushing the number of claims higher through ‘no cost’ litigation products. Investment Insurers will decide, following detailed liability Conference investigations, whether a claim is one to settle on the best terms or whether there is a case to defend because no legal liability is found to attach to the customer. And we, 11 October 2012 specialist insurers, will make a stand against claims when it is clear they are unjustified and unfair, otherwise we IoD Hub London set dangerous precedents for the whole sector by simply continuing to pay out, even when it may cost less than it does to defend. The must attend event for charity chief executives or financial directors Any charity can experience public liability claims, but that does not mean that they are powerless to take steps of charities with £1.5million or more to reduce their risk. Our responsibility as insurers is to in investable assets. ensure that our customers are fully informed and that they understand their risks and responsibilities relating to the different groups of people with which they interface. By To reserve a place at this key conference helping our customers protect themselves against public liability risks we can offer them reassurance that they are please contact: not taking on this fight alone. Hayley Kempen E: [email protected] *Research by independent research agency FWD, field work carried T: +020 7562 2414 out in September 2011 For sponsorship opportunities please contact: Cerys Mclean E: [email protected] T: +44776 666 2610

www.charitytimes.com/investment

22_CTapril2012_ecclesiastical_conf.indd 3 4/5/2012 2:45:25 PM SOCIAL ENTERPRISE Social Enterprise

24 On a mission 26 Ten of the best Social enterprises Despite debates about their nature, social enterprises are in a unique position: they are experiencing more growth than the 27 Making a difference private sector, have greater levels of diversity The Government needs to help to make this in senior management and are confident a breakthrough time for social enterprise, going forward, finds Caron Kemp argues Nick Temple SOCIAL ENTERPRISE

our ethics and principles first. Really it is no different to any other business. Your On a product needs to be different and better with the right price and quality.” Offering a range of transport services from London red buses to social services transport and park and ride, HCT Group mission boasts ten depots across London and Yorkshire and has a fleet of more than 300 vehicles and some 700 employees. With revenue generated from contracts Despite debates about their nature, social enterprises won in the marketplace, a proportion are in a unique position: they are experiencing more (a minimum of 30 per cent) of the previous year’s profits are then reinvested growth than the private sector, have greater levels of into further transport services for the diversity in senior management, and are confident communities they serve, training for the going forward, finds Caron Kemp long-term unemployed and employment opportunities for people in deprived communities. For communications director Frank Hailed as the zeitgeist, endorsed by customers,” she explains. “Our mission Villeneuve-Smith, the company’s politicians as central to the progress of is to make the bottled water industry impressive growth since its creation the sector and believed by many to be a better place and more aware of its is due to its clear business model. the widespread future of best business impact on the environment. “Underpinning everything we do is practise, social enterprises have seen “We are first and foremost an an understanding that in order to get a resurgence in recent years. In the UK environmental brand meaning we that social side right we must first and alone there are currently 68,000 such don’t import or export, we minimise foremost be an effective enterprise,” he organisations contributing more than our footprint and we are completely explains. “Unless we get the business side £24billion to the economy. carbon neutral. And in doing that we right there can be no impact. Defined by Social Enterprise UK want to prove that as a business we “Furthermore growth is a huge priority as a business trading for a social or can be self-sustaining and profitable.” for us and that requires investment. environmental purpose,they will all have But for Lynch, the profit her company A successful business has to be profes- been created to make a difference and makes serves a very clear purpose. “In sional at its heart and because of this be armed with a clear social mission. the UK market we spend £4bn per annum attitude we believe our future is very Spanning a vast spectrum of industries on bottled water yet 783million people bright because we are now beginning and varying dramatically in size and set worldwide don’t have any access to clean to rival the big companies and the bigger up, while some social enterprises reinvest water. So for us, reinvesting all of our we get the more social good we can do.” all of their profits, many do not. And now profits with Water Aid is at the heart of And having ploughed a relatively questions are being asked about quite what we are about. This way our customers modest 37 per cent of last year’s profits how much a social enterprise can - and know their money is going to a good back into community projects, Villeneuve- should - focus on the enterprise aspect cause and we are living up to the social Smith is clear that HCT Group is still proof of their work. enterprise model.” of the success of social enterprises. Karen Lynch is CEO of ethical water “We don’t see many trade-offs between company Belu. Since 2004 her seven-man Principles first being a good bus operator and being a team has been creating bottles made of And it is this business model which social enterprise. Once you start with your recycled materials and promising to be the entrepreneur judges to be the social mission as a driving force you can 100 per cent carbon neutral, giving all future of commercial practice. “Once carry out the business element in a whole its profits to Water Aid. She believes the you have gone beyond the fact that different way. company’s success is down to its clear social enterprises aren’t there to make “We are looking at growth in areas of moral stance. their owners rich anything is possible,” high economic deprivation where we can “Here we define what we do and she claims. go and create jobs. Once we look at our who we are through our branding and “We want to make money but would business through the lens of social value our mission. That then seeps out to our never do that if it meant compromising creation success looks broader. Yes we are

24 www.charitytimes.com “A social enterprise has to make money. But it primarily wants to balance profit against social impact.” Peter Holbrook Social Enterprise UK

an effective business but we are always trying to squeeze out every bit of social value that we can.” “The Social mission real issue is For Villeneuve-Smith, the distinctions the creation of are clear. “If your motive is profit you are a model that can just a company. If your trading leads you blend ordinary to a profit which then enables you to do capital with socially social good that is a social enterprise. We engendering capital exist for our social mission and everything return,” he clarifies. that we do is for a social good.” “The most radical thing to Fully in agreement, and keen to do isn’t to have a charitable sector that blur the division between charity and can’t capture the good that people do commerce, Phillip Blond, head of think- but rather to try and turn all business enterprises growing last year compared tank ResPublica, believes the real visionary activity towards the pro-social. As such with 28 per cent of mainstream small task is to stop seeing all business as bad. we need to provide paths for conversion and medium-sized businesses, Holbrook Instead, by encouraging businesses to for all businesses to social enterprises.” is adamant that as long as profit is sought invest in outcomes that are socially good But for Peter Holbrook, CEO of Social for continuation and growth as opposed – in the same manner as social enterprises Enterprise UK the distinction lies in the to being a primary objective, social – he believes we can progress in the focus of the social good. For him it is only enterprises have a very bright future. marketplace. those organisations for which social good “Taking an ethical approach and “To dismiss business because it is their primary purpose that can fulfil the enshrining that in everything you do is creates a profit is to re-inscribe in stone social enterprise model. appealing to customers. The proposition a system that still leaves a large portion “A social enterprise has to make money,” resonates with people,” he concludes. of commercial activity as not doing the he concurs. “But it primarily wants to “They are experiencing more growth good and that seems to be wrong,” he balance profit against social impact. Many than the private sector, they have greater concedes. social enterprises will forgo profit to invest levels of diversity in senior management “We need to move away from the in opportunities that benefit people or the and on boards, they are much more ‘either/or’ logic that constrains charitable environment. confident going forwards and trading or social good to being a permanently “In any business you have to make sure out of the recession, they tend to be tiny enterprise. you are trading solvently and returning a based in areas of higher deprivation as “The very idea of social enterprise is profit; this is the only way that businesses a way of meeting community need and a good one and if we have a standard grow. But lots of businesses seek to the public visibility of them is growing critique that all profit-seeking is evil I maximise their profit at any cost which all the time. think that is mad.” social enterprises do not. It isn’t just a bit of “They will continue to be the obvious So supportive is he of a social enterprise philanthropy thrown in round the edges; choice for people starting businesses model that does not shy away from profit- these are stated social purposes in their simply because they make sense.” making, Blond would like to see governing documents.” all businesses adopting this ethos. And with 58 per cent of social Caron Kemp is a freelance journalist www.charitytimes.com 25 SOCIAL ENTERPRISE

10 of the best social enterprises

Clarity in the UK, and is co-owned by the cocoa water purification systems. The wood, CLARITY makes and sells toiletries and farmers co-operative - Kuapa Kokoo - in on the Lincolnshire and Nottinghamshire beauty products as a means of giving Ghana, West Africa. Kuapa Kokoo has border, was purchased in 1995 by employment to its blind and disabled two places on the Board and so ‘has a Nigel and Karen Lowthrop who have staff. CLARITY employs over 75 staff in its seat at the table’ and can exercise its transformed a damaged piece of land main manufacturing plant in London and influence over how Divine is developed, to a sustainable and successful social its telesales centres across the UK. Many and receives a significant share of the enterprise. of the social enterprise’s staff struggled to company’s profit. Kuapa Kokoo’s motto http://hillholtwood.com find jobs in the open job market before is “Pa Pa Paa” which means “the best of joining, and were at home living on the best of the best”. Coin Street Community Builders benefits and struggling as a result of social www.divinechocolate.com A social enterprise and development exclusion. Some staff stay for years, others trust which seeks to make London’s long enough to gain skills and confidence The Wise Group South Bank a better place in which to before moving on. Since 1980 the Wise Group’s been helping live, to work and to visit. Since 1984 it www.claritymatters.org people across Scotland and the North East has transformed a largely derelict 13 to gain new skills, get off benefits and into acre site into a thriving neighbourhood H2ope work, reducing reoffending, regenerating by creating new co-operative homes; This Community Interest Company communities, working to eliminate fuel shops, galleries, restaurants, cafes and generates renewable energy through poverty and trying to create a greener bars; sports facilities; by organising small scale hydro, using the weirs that society. In 2010 they helped almost 5,500 festivals and events; and by providing already exist on its rivers. Hydro schemes people get a job, improved 150,000 houses childcare, family support, learning, and offer a creative way of tackling global and developed significant regeneration enterprise support programmes. warming, using existing river weirs or projects in 16 different communities www.coinstreet.org natural falls in rivers, and together with the across central Scotland. volume of water in a river, will generate www.thewisegroup.co.uk Elvis & Kresse green electricity for many decades. Based in Bournemouth, Elvis & Kresse Hydroelectricity has been quietly deliv- HCT Group creates high-end life-style accessories by ering renewable sustainable energy for HCT Group delivers a range of transport re-engineering genuine de-commissioned over 100 years and accounts for 18% of the services in various parts of the UK – from British fire brigade hoses and other renewable energy produced in this country. London red buses to social services materials which were otherwise destined www.h2ope.co.uk transport, school transport to Park and for landfill including waste coffee sacks, Ride, community transport to education scrap sail cloth, pallets and parachute silk. P3 and training. Profits are reinvested from its Elvis & Kresse re-distribute 50% of their Works with some of the most vulnerable commercial work to fund further transport profits to projects and charities. people in society. The organisation offers services or projects in the communities www.fire-hose.co.uk people successful and lasting routes out they serve. HCT Group has a track record of of social exclusion and homelessness employing people who have been out of Bikeworks through a variety of innovative and work for a long time and out-competes big Bikeworks uses bicycles and cycling as effective services, including housing commercial operators. a tool to tackle social and environmental solutions, welfare to work, offender www.hctgroup.org challenges in communities across London. resettlement and alternative education. With shops in the East and West of the P3 has a turnover approaching £10 million, Hill Holt Wood capital, they have supported thousands employs 230 staff across the Midlands and Educates and trains at-risk youth who of people into cycling for the first time, London. Almost twenty per cent of the have been excluded from school, giving given thousands of old bicycles a new team were once users of similar services. them the lasting benefits of education, life, and helped hundreds of homeless www.p3charity.com practical skills, the ability to work in a people gain skills and get jobs in the team, increased confidence and time cycling industry. They reinvest 100% Divine Chocolate spent outdoors. The training skills include of its profits into community cycling The multi award winning Divine Chocolate eco-construction, the manufacture of activities. has led the growth in Fairtrade chocolate wooden furniture and the installation of www.bikeworks.org.uk

26 www.charitytimes.com only their sixth biggest problem. In addition, our work in the field, Making a supporting our members, has shown that there is still much work to demystify and explain the world of investment, making it accessible and navigable to those on the ground. difference It is not a panacea by any means, and ensuring that people understand the different financing options and the associated risks and rewards is The Government needs to help to make this a absolutely crucial. breakthrough time for social enterprise, Removing barriers argues Nick Temple Which makes it all the more important that the Government does more to address the regulatory barriers; barriers Much of the charity sector’s Big Society that primarily exist because the UK is response to the Budget has focused Why is this so important right now? For a leader in the field, and practice has on the cap on tax relief for charitable both good and bad reasons. The good outpaced current legislation. donations and how this might affect reason is that the social investment If we are going to get more private philanthropic giving at time of increased marketplace is changing rapidly and investment into social enterprises to need. This concern is justified and positively, with the launch of Big Society achieve greater impact and change on important, and needs addressing, Capital, a £10 million Investment and the ground, things need to change: not but it has also overshadowed the Contract Readiness fund to support only in CITR, but also as concerns lack of significant progress in the enterprises and new initiatives like a retail exemption for social investment area of social investment as well. ClearlySo’s Social Business Angels (currently, not having this is a problem Concrete recommendations to Network and UnLtd’s Big Venture for crowdfunding platforms and those simplify and modernise Community Challenge showing how much can wishing to establish ‘social’ ISAs and Investment Tax Relief (CITR) had be done to attract new investment to similar products), amendments to significant cross-sector support, but the sector. the Financial Services Bill, charitable only a watered-down version made At a time when other sources of foundations investing greater percen- it into the final Budget. CITR was finance are shrinking, these influxes tages of their endowments in social introduced to encourage investment and developments are hugely welcome; investment, encouraging more com- in disadvantaged communities by and needed. Simultaneously, there is a munity share offers, and, in the long giving tax relief to investors who noticeable, if gradual, mindset change term, accessing pension fund capital back businesses and enterprises in from the practitioner side: recognising to resource the sector. deprived and disadvantaged areas that there are possibilities and oppor- All of these can help realise a vision of the country. tunities in this space, but that they of a society in which solving social The reality is that complications need to work hard to get ready and to problems go hand-in-hand with enter- and restrictions around it have meant understand the investor perspective. prise. Small changes and recommen- little additional investment has The bad reason is that access to dations can help make a big difference, occurred as a result to date, and this appropriate finance remains the biggest and make this a breakthrough period for was a missed opportunity to make problem for social enterprises. Social not only social investment, but for social progress. The Government has committed Enterprise UK’s last state of social enterprise itself. to reviewing the barriers to finance for enterprise survey, Fightback Britain social enterprises, which is welcome: (2011), found that 44% of frontline Nick Temple is director to make this meaningful (and to turn social enterprises claim the availability of business & enterprise review into real action), Social Enterprise and affordability of finance is their at Social Enterprise UK, along with The Social Investment greatest barrier to achieving more UK, the national Business, Big Issue Invest and others, impact and sustaining their work. membership body is recommending that an independent By comparison, standard SME for social enterprise in chair is appointed for the review. businesses rank availability of finance as the UK: www.socialenterprise.org.uk www.charitytimes.com 27 MEASURING IMPACT The measure of it all

Impact measurement models differ and are open to subjective interpretation, but Joe Lepper finds measuring impact is a force for good helping to shape alternative methods of funding charities

Charities are facing increasingly November, Social impact measurement as disadvantaged families. tough demands from commissioners and an entrepreneurial process, this shift also funders to prove they can successfully has the potential to empower charities. Measurement and mission transform lives and communities. Report author Professor Fergus Lyon This strategic focus on ensuring Nick Carey, policy officer at ACEVO, says: “In the past charities have seen measurement and evaluation supports explains in recent years more sophisticated measurement as a form of regulation, a charity’s mission statement is among evidence is being sought focusing on but in reality it has the potential to key advice offered in a report by ACEVO, outcomes, such as a family being lifted make themselves distinct, improve their the Charity Finance Group and New out of poverty, rather than outputs, such service and impress commissioners. In Philanthropy Capital in their report as a family attending a debt management our research we found charities using Principles Into Practice: How charities and course. He says: “What we have seen is evaluation to get donations, contracts and social enterprises communicate impact. a real change of direction with charities in one case of a homelessness charity, to Among case studies featured in the having to show they are having a genuine get planning permissionfor a new centre.” report, which was published in March, is impact.” 4Children, which supports the work of HIV charity Body and Soul, This impact model is becoming disadvantaged families and runs children’s which ensures staff, volunteers and particularly popular among government centres, already focuses on impact by services users are involved in developing commissioners and funders as public mapping families’ transformation from and updating its impact strategy. spending continues to be tight. their first contact with the charity. Alison Barnes, Body and Soul health Recent policy initiatives to focus on Anne Longfield, the charity’s chief outcomes manager, says: “Having the an impact model of evaluation include executive, says: “Crucially, this involves strategy has given us greater confidence in last year’s government commissioned the parents themselves, helping them to fundraising and in knowing we are prov- report Early Intervention: The Next Steps, by establish what they want to achieve. We iding the best possible support we can.” Graham Allen MP. This has the backing of will map progress from a problem arising, Information collected by the charity ministers, including pensions secretary Iain making contact with specialists and it includes survey data from staff, volunteers Duncan Smith, and makes clear that only being resolved.” and users about the effectiveness of charities and other providers with a “strong Already this detailed level of evaluation individual projects, as well as latest global evidence base” of improving troubled has impressed commissioners. In March research into HIV support. Areas covered families’ lives should receive contracts and the charity was handed a contract by include bereavement support and help funding. Hampshire County Council to run seven finding work. This shift to an impact model has children’s centres in the area, with the Despite its success in developing the potential to give funders and council citing the charity’s experience an impact based measurement and commissioners considerable control in the sector as a key factor in its evaluation strategy Body and Soul is over charities and the way they measure appointment. not yet ready to provide commissioners success. Involving parents in the evaluation and funders with evidence of long term But according to a Third Sector Research process also fits well with one of success, such as the social return on Centre briefing paper released last the charity’s goals of empowering investment. This complex long-term

28 www.charitytimes.com MEASURING IMPACT

research attempts to find a value of the work to tax payers through areas such as cutting benefits and health costs and often requires external experts. Pro Bono Barnes says: “We have looked into it but Economics found it could involve a six figure sum to has matched up 11 get the globally recognised evaluation we charities with economists so would require.” far. A Pro Bono spokeswoman adds: Bringing in an external auditor “can also “Our work is always done by volunteer be terrifying as it leaves an organization economists, for free. Though it is not very exposed,” adds Carey. costless. It requires an investment of time One charity with the courage to bring and resources from the charity, which is commissioners are struggling to find a in external verification is crime reduction something that not all charities can spare.” way of effectively match payments against charity St Giles Trust. Two years ago St This focus on measuring impact is also outcomes. Giles Trust became one of the first charities helping to shape alternative methods Early evaluation by the National to be selected by economics group of funding charities and other sector Children’s Bureau and the National Pro Bono Economics, which matches providers to run public services. Foundation for Educational Research charities seeking support with their found that making payments based on measurement and evaluation with outcomes and impact such as improving economic researchers. “Having a shared parents’ aspirations and self esteem were Work by Frontier Economics was secu- measurement structure proving too complex. red for free and looked closely at the long- 4Children, is involved in this pilot and term impact of the charity’s work on the would make it easier to also working with academics at UCL to lives of ex offenders it worked with through compare charities. “ make this process easier by developing a London Probation funded project. Professor Fergus Lyon a national outcomes framework for Third Sector Research children’s centres. Savings and benefits Centre Longfield explains: “This is looking at The research closely analysed reoffending finding some common outcomes that can rates among the group, in comparison St Giles is currently working on a be measured to improve the quality of with a group of ex offenders not six-year project to help prison leavers our work and help develop a payment by supported by the charity, as well as savings in Peterborough using social impact results system.” in areas such as benefits and criminal bonds. Investors receive a return on But Lyon warns that developing this justice costs. their investment through savings to single system “may disempower charities.” This found for every £1 invested in the the taxpayer such as cutting justice and He says: “Having a shared measurement service UK taxpayers potentially saved benefits costs. structure would make it easier to compare £10, a powerful bargaining tool for the The government is also looking at how charities but it could leave charities no charity when tendering for work, says outcomes focused measurement can help longer measuring what they believe they St Giles Trust chief executive Rob Owen. shape payment by results funding models. should be looking at and moving farer Owen says: “Having our work looked But according to early analysis of a away from their mission.” at externally gives our measurement children’s centre payment by results pilot real validity.” launched by the government last year, Joe Lepper is a freelance journalist www.charitytimes.com 29 MEASURING IMPACT

efficiently and rigorously by building on the findings of academics. But in our Open experience many more spend too much time collecting data of variable quality and value, hence they are typically not used.

Three pillars impact In addition, the sector should continue working to replicate the three pillars that underpin rigorous financial reporting. The first pillar is authoritative, sound, David Pritchard says measuring social impact and well-understood practices of is underpinned by a culture of transparency as measuring social impact. It needs to go further than the guidelines found in, for to what works for the people that charities are example, the UK Treasury’s Green and seeking to help Magenta books. The second pillar is the development of a cadre of experts in measuring social My heart sinks when a report company’s accounts with confidence they, impact. They should be accountable to promoting a charity’s Social Return on by and large, represent the truth. Not that their peers across organisations, not just Investment Analysis (SROI) crosses my accounting financial reporting rules are colleagues in their own organisation. The desk. This might seem odd considering watertight. Enron is a classic example of creation of the Social Impact Analysts I champion measurement of social impact what can go spectacularly wrong. Association is a good step towards this. by charities. I believe SROI is a useful tool, But Enron broke the rules. When it The third pillar is the independent and I also believe that, in general, charities comes to measuring social impact there validation of measures of social impact. do good work. are no rules to break. There are only guide- Few people would want to see scarce The reason I react this way is because I lines and methods. And these are subject charitable funds used to finance a group face three options, all equally unappealing. to the incentives facing charities—and of social impact auditors. But why not have First, I could take the results at face value. companies that report their corporate charities peer review each other’s impact I would like to do this out of respect of social responsibility—to highlight or exag- measures or have academics do the same? the time and effort that someone has put gerate the positive, and underplay or ignore Charities could be more transparent, into coming up with the results. But I have the negative. While this can be done in publishing both good and bad results, in seen enough poor quality SROI analyses— estimating social impact, accounting and the same way that public companies have and some by people who should have financial rules limit the abilities of compa- to be. The challenges in getting charities to known better—that I am reluctant to do nies to do this for financial statements. do this are significant, after all who wants this. So, my second option is to assume Misrepresentation of social impact need to be the first to come out and say their the analysis is weak and the results not be deliberate. NPC’s Measurement and results are disappointing, but this could be exaggerated and so ignore them. But this Evaluation team often works with charities addressed over time. seems unfair. Maybe this charity is making that only have anecdotal evidence of their Various initiatives looking at all of this a big difference. impact. This is not really convincing to are already underway. But if they are to Why ignore their results because some- anyone who isn’t already persuaded by succeed, they need to ensure all work on one else over-eggs their impact? My third the rightness of what the charity does. The measuring social impact is underpinned option then, is to read the report—which problem of charities underplaying their by a culture of transparency and spirit of usually means poring over the methodo- impact is arguably as serious a problem inquiry as to what works for the people logical details—and assess the methodo- as overestimating it. that charities are seeking to help. Because logy and results for myself. But this can So what are charities to do? The answer, this, in the end, is the point. take a few hours, which is difficult to justify. I believe, is two-fold. Individual charities can become smarter about measuring Breaking the rules their impact. In NPC’s ten-year lifespan we This problem does not apply just to SROI. It have seen significant and positive changes: David Pritchard is head can occur with other methods of measur- the debate has moved from whether of measurement and ing social impact. I find myself envious of to measure social impact, to how. A few evaluation at New financial analysts who can glance at a leading charities capture their impact Philanthropy Capital

30 www.charitytimes.com We protect those who help others.

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11 October 2012 IoD Hub London

The conference will pull together leading investment managers focused on the sector to analyse the whole gamut of investment offerings available to charities and how charities can exploit investments to the full.

To reserve a place at this key conference please contact: Hayley Kempen E: [email protected] T: +020 7562 2414

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shelters_charity_times_april.indd 1 29/03/2012 10:17 MEASURING IMPACT Measuring impact: what can funders do to help

There’s work for both work. Organisations – big and small – Within charities, planning for impact, funders and charities in increasingly realise that and funders and measuring it over time, can be a need to enable it through their application challenge to existing practice - it requires agreeing and evidencing requirements. leadership and commitment. But it’s very what impact they want At the Big Lottery Fund we constantly clear to me that the organisations which try to design our application forms to take up that challenge and integrate to achieve and how to help people through a process of thinking impact thinking at every stage of their measure and act on it, about outcomes for users of the proposed work are the ones that end up achieving says Peter Wanless project and the ways of measuring the most. progress towards achieving those Funders like BIG need to do what outcomes. Our evaluations show that even we can to help that integration rather unsuccessful applicants value engaging than slapping on our own slug of With ever greater pressure to with that process. unique measurement or accountability prove effectiveness and to demonstrate requirements. I am encouraged by results, charities may sometimes wish Challenging existing practice moves made by funders in Scotland to they could be left alone to get on with Evidencing impact is important to harmonise their reporting requirements. the job. Reporting to funders on what the Big Lottery Fund because there All funders, BIG included, can go further a charity is seeking to achieve and are so many more good causes we in the direction of reducing unnecessary then on what subsequently happens could support than there is cash avail- demands and go with the grain of good is a tiresome chore if the information able to distribute. We must judge practice reporting. gathered is purposeless and not between competing bids and under- Equally, from a charity’s point of view, wacted upon. standing outcomes is one important there is no point in inventing one’s own But intelligent funders and charities way of doing that. In difficult economic measurement wheel. Although impact ultimately want the same thing – to times, more than ever, we must seek not discussions need to reflect individual achieve positive impact with the money just to fund good things but to do the context, there is a lot that can be learned they spend and to learn how they – and best we can with our cash in the most from peers when it comes to choosing others – might do things even better in cost effective way. the right approach. the future. Consideration of what success would look like, and how you’d know it when you saw it, is time well spent at the Our evaluations show that even unsuccessful applicants planning stage of any new piece of value engaging the process.

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adult_ed_charity_times_april.indd 1 29/03/2012 14:11 MEASURING IMPACT

There are a host of useful tools on looking at how we can use social media charities in agreeing and evidencing the web and established ‘best practice’ and blogs for funded projects to share what impact they want to achieve, ways of measuring progress in areas more widely their progress, impact and how to measure it and how they will ranging from work with young people learning. act on what they learn. to substance misuse to wellbeing. Reporting then has value not just Now more than ever, as compe- Our guide to Getting Funding and Planning to funders but also to the communities tition for scarce resources increases, Successful Projects signposts some of the and people the projects support. This that is a fundamental part of doing main sources of such information. We’re approach, handled appropriately, can our best for the communities and also supporting a more coordinated aid transparency but could also inspire people most in need we all care so approach to impact measurement across others by helping them see what is much about. the voluntary and community sector being achieved elsewhere with Lottery called ‘Inspiring Impact’. funding. Peter Wanless is chief executive So there’s work for both funders and of the Big Lottery Fund Systematic approach At BIG, aware of the power we have to influence practice, we have been There is an opportunity with demands for greater trans- cautious about requiring a particular form of impact measurement. We have parency and moves towards more open data to consider set an outcomes approach within our how we make our funding evaluations more accessible. applications process and reporting and encouraged self-evaluation. However in our targeted funding programmes we feel the time is right to adopt a more systematic approach, alongside other funders, within our England programmes for young people and older people, building on the good practice out there in the sector. Take a look too at our Improving Futures programme, which takes a rigorous and systematic approach to measuring outcomes for children and families across the UK. With tightly focused programme outcomes, and organisations working to common goals, data can be aggregated and collective impact demonstrated. This is something that is beneficial to all involved and has the power to leverage policy and practice change for the future, well beyond these specific investments.

Progress, impact,learning There is also an opportunity, with demands for greater transparency and moves towards more open data, to consider how we make our funding evaluations more accessible to others – both to positive supporters and more cynical armchair auditors. We plan to test some of these approaches at BIG,

34 PS Financials Helping charities help others…

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Find out how PS Financials helps over 400 charities in Telephone 39 countries to measure their impact, inform donors +44 (0) 1733 367 330 Email and deliver more. info@psfi nancials.com www.psfi nancials.com INVESTMENT ANALYSIS Sponsored by Reliable Managers make use of hedge fund-like flexibility to do this. So they may take long equity positions, for example, and guard returns against them falling by sitting in cash, taking short positions or even purchasing gold Exchange Traded Funds (ETFs).

Marek Handzel finds absolute return strategies Protection in tough times for charities have increased ten-fold, can Given its idealism, it is no great surprise that charities have warmed to the sector. help reduce portfolio volatility, provide As Andrew Pitt, head of charities at downside protection and should be part of a Newton, explains, there is a very good charity investment portfolio argument to be made for charities to embrace absolute return-style strategies, given the mountain of debt the Western world is sitting on. Towards the end of 2002, Cazenove achieve ‘smooth’ returns, despite market “We are in the process of reducing debt,” Capital Management unveiled a new conditions. And the strategy, whether he says. “That means lower economic investment fund called The Absolute employed as part of a portfolio, or as the growth and a more volatile environment Return Trust for Charities (ARTC). over-riding focus of investment policy, in the next few years as deleveraging is Created to give stable returns through has gained some followers. actually a very difficult process.” a fund of hedge funds, it was the first The WM Company has calculated that The Newton house thesis on how such product on offer to the third sector, the use of absolute return strategies by this will play out involves continued reflecting the growing investment charities increased ten-fold from 0.7% by Keynesian policy from central banks and sophistication of charities at the time. value in 2008 to 7% by the end of 2010. governments in order to ‘keep the show A decade later, the ARTC is now just Absolute return strategies target on the road’. As a result, further bouts of one of many. a positive return, usually measured quantitative easing and prolonged low Charities can now choose from a wealth against cash plus inflation, rather than a interest rate levels will lead to periods of absolute return funds and managers, benchmark index. They also aim to when markets will rally, tempted by the offering a number of ways that claim to take investors on a less bumpy ride. belief that the financial crisis is over. With equity markets towards the end of March up by 20% since last October, Pitt believes that we are in such a position at the present moment. “But we’re also going to get periods where investors become concerned again and markets are likely to sell off again sharply when that happens,” he says. “We feel that is going to be the picture for the short to medium term until debt levels are down to a more sustainable level”. Nick Orr, head of charity investment at Schroders, agrees, saying that a number of absolute return managers have shown resilience in times of stress or market dislocation, particularly during 2008, after the collapse of Lehman Brothers. “Certain absolute return funds can help reduce portfolio volatility and

36 www.charitytimes.com Sponsored by INVESTMENT ANALYSIS

provide downside protection,” he argues, advocating some exposure to low volatility hedge funds with a material weighting to more liquid, and transparent absolute return funds. “These types of funds tend to have a number of characteristics that are beneficial to charities: simplicity (tending not to use derivatives), transparency, relatively low cost and income producing.” Investing on an absolute return basis or including such a strategy as part of a diversified portfolio could be particularly appropriate for charities at an earlier stage in their development. Brewin Doplhin’s head of charities business development, Ruth Murphy, believes that the strategy is most appropriate for cautious first-time investors. that many funds are more correlated to afforded by a rally in equity markets. Not an easy sell? equity markets than some would expect. This puts investors at a distinct Given the predicament that investors face, Take Cazenove’s ARTC. Its net compound disadvantage, says John Greenwood, some question why there has not been return, since inception, is 4.4%. But its CEO at Creechurch Capital, who says more interest from charities in a strategy journey has not always been a smooth or that absolute return funds have a point to that offers protection in risky times. uncorrelated one. Its performance, net of prove. “Perhaps [it is] surprising that there has fees, from 31 January 2008 to 31 January “Although in theory, this is a compelling not been a greater take up, but maybe 2009 was -10.86%. story, the reality is that it has not delivered trustees are more perceptive than we And earlier this year, multi-manager in the short term. Longer term, this could give them credit for,” says Tim Maile, specialist Thames River Multi-Capital, be catastrophic for investors, who will head of Charity Investment Management used data from investment analysis firm miss a large part of the next equity market at Quilter. Lipper, to show that absolute return funds move,” he warns. “The fact of the matter is that all delivered -1.22% over 2011. However, perhaps a little more patience investments carry a degree of risk, whether Murphy says that this is a reflection is in order. Absolute return is still in its they are designed for short-term absolute of the fact that many absolute return infancy and characterised by a very or long-term relative returns. The risks are strategies have “succumbed to the value diverse set of funds, not only in terms just different.” on offer in the equity markets and perform of positioning and asset class, but also Then of course, as Pitt points out, there ‘directionally’ in a similar manner to the in cost. are charities that have been there, done stock market”. “It’s a very complicated area, and that, and got the T-shirt. charities should be very wary of the “Many charities will say ‘we’ve been Missing out options available,” says Jupiter’s director around for 200 years and had lots of The other end of the spectrum on of charity investment, Oliver Burns. our money invested in equities which equity exposure in absolute return “That’s not to say that some of them has worked well’. It’s hard to make an is not so attractive to some charities won’t be suitable because some of them argument against that in some respects, either. Managers who have successfully clearly are. (But) they should be part of as equities have certainly delivered dampened volatility when equity markets a portfolio, rather than the one strategy inflation-beating returns over the long- have fallen, have usually registered returns you follow.” term,” he says. that have been in single digits during most Added to this is the bad press the sector bull runs. High fees,in some cases, have Marek Handzel is a freelance financial has had in recent times, following evidence also accentuated losing out on growth journalist www.charitytimes.com 37 INVESTMENT ANALYSIS Sponsored by Measuring your manager

James Codrington analyses the measurement of work of Daniel Kahneman, who won returns, highlighting there is a risk of lengthy periods the economics prize for his work on this phenomenon of loss aversion, suggests of underperformance versus benchmarks and indices that the coefficient of loss aversion in which can make trustees and fund managers nervous. gambling experiments was 2.5, that is, But it is the long-term that is important a 50-50 bet to win $25 or lose $10 was barely acceptable. Potential pain (that is, losses) leads to the desire for control by, for example, looking at returns each quarter. But he frequency with which performance ‘independently and identically distributed’, such control is illusory: the information Tis measured has prompted much that is, there is ‘serial independence’ provided every three months may have discussion on the best time-frame (under this assumption, the past limited value. For example, a stock like for reviewing one’s investments. The behaviour of, for example, a particular Royal Dutch Shell might have a price range economist John Maynard Keynes noted asset class is irrelevant to its subsequent over three months of perhaps 10 per that “The Stock Exchange revalues behaviour – ‘markets have no memory’). cent. It is unlikely that the value of Shell’s many investments every day and the If this were valid, then a long term investor businesses would have changed by this revaluations give a frequent oppor- should behave as a short term one. much; the ability to predict and to explain tunity to the individual… to revise his But this hypothesis has been subject to this sort of price movement is virtually commitments. It is as though a farmer, heavy qualification,4 especially in recent impossible. having tapped his barometer after years, with Warren Buffett noting that: Equity volatility makes the value breakfast, could decide to remove his “I’d be a bum in the street with a tin cup of frequent measurement dubious. capital from the farming business if the markets were efficient”. So a long Furthermore, above a very low hurdle, between 10 and 11 in the morning term investor should not make the same more information does not translate and reconsider whether he should decisions as a short term one, and those into greater accuracy, just greater return to it later in the week”.1 More decisions should not be judged over the confidence;6 indeed, studies on consumer prosaically, the Myners Report on short term. choice suggest that ‘less is more’ in the institutional investment concluded A long term perspective, though, is context of decision making – too much that quarterly trustee meetings led to unnatural: part of the human brain is contemplation gets in the way of good a focus on short-term performance.2 hard-wired to value short term reward decision-making.7 However, the report cited one response over delayed gratification – when faced If comfort-seeking behaviour leads to to accusations of short-termism: if there with the possibility of a short term gain most investment decisions being made was a focus on quarterly figures, this was we get carried away and forget about for the short term, then there should be not necessarily wrong as ‘the long term the long term.5 a comfort premium paid to contrarian is composed of a series of short terms’ Keynes foretold such findings when he investors, albeit with the difficulties that – in other words, the consistent delivery wrote that “human nature desires quick Keynes outlined in 1936: “It is the long- of good short term performance was results, there is particular zest in making term investor, he who most promotes the the best way to deliver good long term money quickly and remoter gains are public interest, who will in practice come performance. discounted by the average man at a very in for most criticism, wherever investment Such an argument is informed by high rate...” funds are managed by committees or the ‘Efficient Market Hypothesis’,3 In a similar vein, we all dislike losses boards or banks. part of which suggests that returns are much more than we enjoy gains. The For it is in the essence of his

38 www.charitytimes.com Sponsored by INVESTMENT ANALYSIS

“Judging a long-term investment strategy based on the results of a five-to six-month period is foolish beyond words.” David Swensen Yale University CIO

behaviour that he should be eccentric, Foundation fell some 25% in the fiscal “Don’t bother. If it was really there, somebody else unconventional and rash in the eyes of year to 30th June 2009.10 would’ve already picked it up.” average opinion. If he is successful, that David Swensen, Yale’s investment chief, 5 See McClure et al., Science Vol. 306 no. 5695, will only confirm the general belief in said in his defence that: “There isn’t an 15/10/04; http://www.sciencemag.org/content/ his rashness; and if in the short run he is investment strategy that can produce 306/5695/503.short) unsuccessful, which is very likely, he will the kind of long-term results we’ve 6 Tsai, Klayman Hastie, ‘Effects of amount of not receive much mercy. Worldly wisdom generated at Yale that isn’t going to post information on judgment accuracy and confidence’, teaches that it is better for reputation the occasional negative return… Judging in ‘Organizational Behavior and Human Decision to fail conventionally than to succeed a long-term investment strategy based on Processes’, Vol. 107, 2008; http://papers.ssrn.com/ unconventionally.” the results of a five-to six-month period is sol3/papers.cfm?abstract_id=1297347 To embrace this approach, then, risks foolish beyond words.” 11 7 Dijksterhuis, Bos, Nordgren, van Baaren, ‘On Making lengthy periods of underperformance the Right Choice’, Science Vol. 311, 17/02/06: versus benchmarks and indices. Such 1 Keynes, ‘The General Theory of Employment, 8 Goyal , Wahal, ‘The Selection and Termination of periods have the potential to make both Interest, and Money’, Chapter 12 (1936). Investment Management Firms by Plan trustees and fund managers nervous 2 Paul Myners, ‘Institutional Investment in the United Sponsors’, The Journal of Finance Vol. LXIII, No. 4, and to prompt the hiring and firing of Kingdom: A Review’, 06/03/01. August 2008; http://www.bus.emory.edu/agoyal/ managers at precisely the wrong moment 3 This theory states that it is impossible to ‘beat docs/hirefire_jof.pdf (one study has shown that if US pension the market’ because stock market efficiency causes 9 Yale University, 30/06/09. plan sponsors had stayed with fired existing share prices always to incorporate and 10 Ibid. investment managers, their excess returns reflect all relevant information. According to the 11 Bloomberg, 02/01/09. would be no different than those delivered EMH, stocks always trade at their fair value, making by newly hired managers8). it impossible for investors either to purchase under- The example of the Yale Endowment valued stocks or to sell stocks for inflated prices. is instructive: it achieved a ten year 4 The hackneyed joke runs that a finance professor is average return of 11.8% versus 1.7% walking along the pavement with a student. They James Codrington is from a 60/40 allocation to US equities come upon a £20 note lying on the ground, and the investment director at and bonds.9 However, even the Yale student leans down to pick it up. The professor says, Rathbones www.charitytimes.com 39 CHARITY FRAUD

sees reports across his desk. “Ferry Lane Zero is a name now synonymous with charity fraud cases and keeps appearing in tabloid headlines”. In November last year, police seized a shipping container on the estate, stuffed with 300 sacks of tolerance secondhand clothes, weighing 20 tonnes and worth £40,000. The bags had been intended to raise funds for the British Heart Foundation, NSPCC and PDSA Elliot Lane finds a Ferry Lane retail estate is a typical but instead were heading for sale in criminal fraternity has inner city industrial park, with identical Eastern Europe. grey looking business units and white Like the rise in metal thefts across become involved in vans snaking in and out, heading for the UK, the secondhand garment trade charity fraud and hit the east London and Essex. Driving past, has attracted organised crime. The value heart of the sector. But onlookers could blink and miss it, and of secondhand clothing has escalated never know that in the past year this has since 2006 and according to the for charities, an anti- become the epicentre for major fraud in Fundraising Standards Board (FRSB), fraud culture should the charity sector. bogus bag collections are denting Lee Marshall, who heads the charity charities’ finances. help mitigate the risk fraud desk at the National Fraud FRSB chief executive Alistair McLean and act as a deterrent Intelligence Bureau (NFIB), frequently says: “This problem has hit the heart of

40 www.charitytimes.com CHARITY FRAUD

the sector. Charities dependent on on it, and supposedly Pink Ribbon would A CRA spokeswoman agreed that it collections are feeling the pain as recycling receive £5,000 a month in donations. would encourage people to take any secondhand clothing has become big Bogus bags are a real menace.” unwanted garments and gifts to a high business. A large majority of recycled street shop. “Though we understand some garments are placed in charity collection Co-ordinated campaign charities are looking at alternative ways to bags and we believe bogus collections There is real concern among many receive donations not just via door-to-door represent £50m loss of earnings per charities that the upset and intrusion these collections. Some items are now sold annum to the sector. thefts cause, will stop well-intentioned online and internet trading seems to be “The issue has doubled in the past givers from donating in the future. growing in popularity.” 12 months. The criminal fraternity has A co-ordinated campaign was launched Oxfam “does not believe in blanket got more involved and this is not in December last year by the FRSB to raise distribution of plastic bags for house-to- opportunistic crime; it’s organised public awareness, which has the support house collection of donations across the crime,” he adds. of the Institute of Fundraising (IoF), the UK”, says a spokeswoman, blaming the Marshall agrees fraud within the Textile Recycling Association (TRA) and poor quality of the goods. Instead the sector has moved from an individual or Charity Retail Association (CRA). charity relies on its network of 700 high group of trustees looking to make a quick In only three months it has received the street stores, and has introduced 600 buck to something more sinister. “The support of 41 MPs, spearheaded by Tracey donation bank sites, in various authorised amounts of money being made is Crouch MP in her Chatham and Aylesford locations including supermarkets, local significant and is funding other criminal constituency in Kent. Over half a million authority car parks, household waste activities such as drug trafficking. In South households nationally have been targeted recycling centres or collection lay-bys. Wales a fraud gang was recently caught with 50,000 bags they were ready to export,” he says. NSPCC puts losses to charities through bag theft and However there are clear loopholes in bogus bags at around £14m a year, equivalent to a loss of the law on what is fraud and what is legal. “What is difficult though is people 12 per cent across the sector circumventing the rules. Taking clothing and exporting it for sale abroad is not illegal. It maybe unethical but in the eyes with leaflets in crime hotspots including The NSPCC’s fundraising, however, is of the law, it is difficult to prosecute.” London, Birmingham, Manchester, heavily reliant on door-to-door collections He highlights a case of a Lithuanian Liverpool, South Wales, the North-East and and employs Clothes Aid to administer the charity dropping bags through letter- South West of England. collections. Since the relationship between boxes for clothing donations which The leaflets outline simple guidance the two organisations began in July 2009, has a Lithuanian registered charity on what the public should look for (see £2m has been raised and Clothes Aid number on it. “However we cannot find box on page 43) to distinguish the bona collectors always carry ID, wear a bright this number in Lithuania as it doesn’t fide bags against bogus ones. Charities orange uniform and collect donations in have an equivalent of the UK Charity that do not have a high street shop marked Clothes Aid vans. Commission. So it is probably bogus, presence are most vulnerable and there is But this still hasn’t stopped theft. however, it cannot be construed illegal,” concern that third party collectors could NSPCC head of corporate partnerships, Marshall admits. also abuse the system. Svetlana Kirov, said: “It is hard to quantify Complaints from the public have McLean notes a distinct difference in how much the NSPCC loses through increased significantly and a fifth of all charities approach to fundraising. “There theft due to a lack of prosecutions and calls received by the FRSB helpline over are legitimate commercial collection convictions. However, an estimate by the past three months have been related companies which act as third parties Tracey Crouch MP puts losses to charities to collection fraud. Jonathan Prince of the for charities that don’t have a high street through bag theft and bogus bags at Pink Ribbon Foundation says he receives presence. NSPCC are one such charity. around £14m a year, equivalent to a loss queries from the public all the time. “I have The CRA openly advises the public not of 12% across the sector. Based on this, just been told of another alleged to use commercial collectors. However Clothes Aid has estimated that the NSPCC collection bag for Pink Ribbon, operating we believe people should have the choice could be missing out on approximately in Berkshire. The collection company is to give to who they want and by whatever £100,000 a year as a result of stolen and Intersecond, and it says they are collecting is the best method for the charity involved. bogus clothes bags. on behalf of a Lithuanian charity called It should not just be a donation on the “To put this into context, £100,000 Azzara. There is a registration number high street.” would enable the NSPCC to answer around www.charitytimes.com 41 CHARITY FRAUD

25,000 calls and e-mails to ChildLine from vulnerable children and young people, or to answer over 11,000 calls from adults concerned about the welfare of a child.” Clothes Aid business manager, Michael Lomotey, adds: “Thankfully instances of clothing collection related fraud against charities are relatively rare, but in August 2010, we were made aware of a company distributing leaflets and claiming to be raising money for the NSPCC through clothing collections. Upon this discovery, we worked closely with the NSPCC to investigate, and reported the company to Trading Standards. Warnings were issued to the company that any further action by them would result in criminal proceedings, and the fraudulent collections stopped.

Nationwide fraud database So would a nationwide fraud database, similar to the Motor Insurers Database, “Smart information sharing is the best way forward for which gathers and shares information on the sector. In some cases there would need to be careful potential fraud, work within the charity information sharing between some groups.” sector? Marshall believes there is scope Melora Jezierska, CFG for more information sharing which could be held and controlled by the NFIB up to the government’s ‘Fighting Fraud Commission’s toolkit which is very but worries “that not many charities are Together’ strategy. It aims to give a fresh useful and then signpost trustees to happy talking to one another, it’s very impetus to tackling fraud by mobilising the other really good information which dog-eat-dog”. the public, government, law enforcement, is out there.” As part of the Charity Act consultation, public and private sector organisations She believes more information all stakeholders campaigning for tighter and the voluntary sector. could be shared but understands that controls on fraud and tackling criminal A Charity Commission spokeswoman fraud is a major reputational issue for activity have met with Lord Hodgson said: “Part of this strategy is looking at the many charities. “Smart information and his team in recent months. There is issue of fraudulent clothing collections. sharing is the best way forward for the speculation this may lead to a new body Although in general these are not for the sector. In some cases there would need being created to co-ordinate anti-fraud Commission to investigate, we are to be careful information sharing between measures. supporting this work by sharing some groups. What has worked well are The consensus among the majority information with our partners to help online discussions on phishing emails or of charities is that since the Charity build a comprehensive picture of the sham websites. Commission was established, fraudulent problem. For example, we will be assisting “Charities should take a zero tolerance behaviour has decreased substantially. In our partners in seeking the sector’s views approach towards fraud and if an the Commission’s Back on Track 2010-2011 and experiences of fraudulent clothing employee or volunteer is found to have report published last year, it stated that of collections, to inform a strategic response acted illegally then they should be the assessment cases the Commission to the issue.” automatically dismissed. It is not always undertook, fraud, theft, financial and With a myriad of helpful guidance necessary to go to the police. If everyone fundraising issues went up from 16% notes and toolkits, the Charity Finance knows that there is an anti-fraud culture, to 26%. Whistleblowing was one of the Group (CFG), has decided to publish in then this should mitigate the risk and act key reasons more cases had been April 2012 a comprehensive amalgamation as a deterrent.” highlighted. of all the best advice (see Checklist box). The Charity Commission is one of 38 Melora Jezierska of the CFG says: “We Elliot Lane is a freelance financial partner organisations which has signed wanted to bring together the journalist

42 www.charitytimes.com CHARITY FRAUD

Is it fraud, or just unethical?

Identifying what is a straight fraudulent for soldiers in Afghanistan. No soldier Charity fraud - the facts case and what is just incompetence or ever received the money. That is a direct unethical behaviour has dogged the fraud. The dog charity however is a case The National Fraud Authority (NFA) charity sector for years. Lee Marshall of the of unethical behaviour. More vigilance is estimates that fraud against the charity National Fraud Intelligence Bureau (NFIB) needed.” sector costs £1.3bn a year. Its latest fraud highlights that many of the garments Jonathan Prince of the Pink Ribbon indicator will be published in April which stolen in this country, end up in huge Foundation said he avoids all gift card may show the figure has risen slightly due clothing emporiums similar to TK Maxx in promotions because “the charity may to a rise in organised crime against the eastern Europe. receive £1 per pack but you find they are sector. “The problem is we find it hard to being sold for £9 abroad”. The Charity Commission’s headline prosecute. One case involving a small Another case involves mobility scooters. data from its Back on Track 2010-11 report dog charity in the northeast is typical. The Annabelle Waterfield, chief executive of on fraud: 371 out of 849 (44%) serious charity was approached by a collection Hertfordshire Disability in Action, says incident reports related to fraud/money company who said they would administer the market is being flooded by cheap laundering/theft or significant loss door-to-door collections. The charity foreign products. “You will see container Issues of fraud and theft featured in: would receive £500 a month in donations loads of cheap scooters from China and • 266 assessment cases (14% of the total) and they were delighted. However that Taiwan that can be bought on the internet. • 38 of 158 completed regulatory collection company was re-selling the However they are dangerous. We train compliance cases (24%) garments abroad at five times that amount our members to use the scooters, register • 13 of 144 new investigation cases per month. them with the Department of Transport opened in the year (9%) “Now we also saw a charity called and advise on insurance. “The practice isn’t • 15 out of 35 whistleblowing reports Troops Aid which was raising money fraud but it is highly unethical”. (43%)

FRSB’s public awareness

FRSB’s public awareness leaflet on bogus bags which has been distributed to 500,000 households

Look, Check, Phone and Report. Look for a Charity Commission registration number Check for the ‘Give with Confidence’ tick the Charity Finance Group’s checklist for charities and logo trustees on fraud prevention, part of the new guide to Phone the number on the clothes be published April 2012 in conjunction with the Charity collection bag if suspicious Commission, National Fraud Authority, Fraud Advisory Report it, don’t dump it. If it looks Panel and a number of sector umbrella bodies suspicious, then contact the FRSB or the Action Fraud number on 0300 123 2040. Checklist: To help prevent fraud and make your charity alert to risks q Instil a culture of ethical behaviour throughout the charity q Develop an anti-fraud policy q Understand your risks q Implement robust financial controls q Ensure there are robust recruitment procedures q Develop a whistleblowing policy q Encourage awareness throughout the charity q Keep records of suspected and confirmed fraud

www.charitytimes.com 43 GRANT MAKING The changing landscape of grant making trusts

Ben Wittenberg notes that DSC research shows funding from grant making trusts remains stable despite the recession, but an increased demand on trusts and foundations’ finite resources is inevitable

At the Directory of Social Change we’ve been researching grant making trusts for over thirty years, examining their practices, scrutinising their reporting, and making what they do clear to those organisations that rely on their funding to achieve their objectives. With the latest edition of Directory of Grant making Trusts, we’ll be releasing a report containing some key information gathered as part of our ongoing research which we think will be of great interest to everyone looking at grant making – from either side of the fence. In lieu of the final version of the report, here are some of the initial findings or to fill the gap when state funding ends. percentage of successful new applicants and discussion points that have been However, this is notable in the current was less than 50 per cent. occupying our research team over the environment which is characterised by Many trusts appear to fund a high last month or two. deep cuts to public expenditure. It is likely percentage of the same applicants year- that many trusts will receive more requests on-year, with the most common response No replacement funding for support along these lines in the future, indicating that less than 10 per cent of Only 8 per cent of trusts will consider and may need to re-examine their policies successful awards were made to new replacing lost statutory funding. This may and procedures as a result. applicants. However the way some trusts be unsurprising, given that historically make grants over multi-year periods could trusts have been reluctant to fund work Do we know you? affect this data. For example if a trust which is viewed as a state responsibility For the majority of trusts (90 per cent) the makes three-year grant awards every year,

44 www.charitytimes.com GRANT MAKING

and awards the same total amount of right, but around 32 per cent of trusts you are unsure of in the guidelines or funding each year, then by definition only stated that they do not accept unsolicited application process 33 per cent of applications could be ‘new’ applications. l Do not send blanket appeals – funders in any given year. The rest of the funded Now what that means in reality for can tell if an application is a general organisations would be in years 2 and 3 of fundraisers can be difficult to ascertain. mail-merged appeal sent to many their grant agreement. For some trusts it will indicate a specific organisations without due regard for approach that the trustees proactively their individual policies and funding More competition? seek out organisations to support, priorities Just over half (57 per cent) of trusts and will not support any applications l Make sure your application is clear, reported no real change from last year, from organisations they do not already concise and jargon-free. although around one third (34 per cent) know about. For some it may indicate reported an increase in applications. For a temporary state, where multi-year However, as is usually the case with a significant group of trusts applications grants have been committed and they grant making trusts, the overall picture are on the rise, but the level of stability for will not consider any new applications masks a lot of interesting activities by the majority of trusts is surprising, given for a period of time. And for some it will individual and groups of trusts. For the difficulties in the broader funding be an attempted deterrent, a deliberate example, looking at the top level data environment for charities. barrier intended to reduce the number on eligible applications and numbers A number of those that responded said of applications they have to deal with. of awards made, if your application is they were maintaining their overall levels Either way, they all have a legal obligation eligible you stand a 45.9 per cent chance of grant making but reducing the size of to at least consider any application that of getting funding. However, dip below individual grants; a few stated that they might help them further their charitable the headline figure and you’ll find 43 were in a position to increase the amount objectives. trusts with a £16.8million receiving of total grants given. Inevitably, a number over 12,000 eligible applications, that of them stated that they have been unable didn’t make a single grant in the last to sustain previous levels of grant making. Grant making trusts are financial year. At the opposite end of the not stepping into the void scale, there are 61 trusts with £17.1million A question of scale created by the withdrawal that received 6,797 eligible applications As for replacing huge cuts in statutory of statutory funding in between them and funded every single funding, it’s interesting to see that 74 per one. Overall, our research suggests that cent of grants made were for £5,000 or many areas, and are largely funding from grant making trusts and less. Only 14 per cent topped £10,000. continuing to operate in the foundations remains stable despite the All of these factors indicate that overall, same way recent recession and the prevailing grant making trusts are not stepping economic challenges. Funders are into the void created by the withdrawal Ineligible applications continuing their efforts to mitigate of statutory funding in many areas over Ineligible applications are still a signifi- the worst effects of the financial crisis recent years, and are largely continuing cant issue, with many funders experiencing on the charities that rely on their funding to operate in the same way with the same ineligible applications rates in excess to help to support some of the most objectives, as well as supporting largely of 90 per cent of the total applications disadvantaged members of society. the same beneficiaries. received. This is why DSC continues The austerity measures imposed Later this year we’ll be carrying out to campaign for an end to ineligible by the current coalition government some more in depth research analysing applications by providing detailed however make the likelihood of an the DGMT data against a range of information on the policies and practices increased demand on trusts and additional geographical and beneficiary of trusts and foundations and making foundations’ finite resources in the data to try and identify any underlying key recommen-dations to potential future almost inevitable. patterns or shifts in behaviour, but at a applicants, namely: macro level at least, it’s business as usual. l Read the guidelines provided by the Ben Wittenberg is director of policy, trust (not doing so being the most publishing & research at You can’t always apply common reason for applications being DSC@ben_wittenberg Grant making trusts are charities, and as ineligible given by the trusts who such, their money is for the public benefit. responded to our survey) Figures in this article are taken from You might assume that means anyone l Do your research – make sure you apply a forthcoming report DGMT Analysis can apply for it so long as they meet the to the right funders 2012 which will be available at: trust’s criteria, and to an extent that’s l Seek clarification if there is anything www.dsc.org.uk/dgm www.charitytimes.com 45 SUPPLIERS DIRECTORY

To advertise in the Charity Times Suppliers Directory contact Cerys McLean 07766 662 610 or Aisling Davis 0207 562 2423

ASSOCIATIONS

The Association of Chief Executives of Voluntary Organisations (ACEVO) supports ACEVO members by providing access to: 1 New Oxford Street ● Third sector leadership and governance resources to support boards and senior London management teams WC1A 1NU ● Information, publications and reports on key third sector issues T: +44 (0) 20 7280 4960 ● Conferences, courses and networking opportunities to enhance skills and F: +44 (0) 20 7280 4989 build knowledge E: [email protected] ● Dedicated helplines and support services such as CEO in Crisis - a service for third sector CEOs facing disputes with their board. ACEVO also acts on behalf of members; connecting members to key contacts in government.

Charity Finance Group The Charity Finance Group (CFG) is the charity that champions best practice in finance management in the charity and voluntary sector. Our vision is a transparent and CAN Mezzanine efficiently managed charity sector that engenders public confidence and trust. With 49-51 East Road this aim in sight, CFG delivers services to its charity members and London N1 6AH the sector at large which enable those with financial responsibility in the charity T: 0845 345 3192 sector to develop and adopt best practice. With more than 1700 members, managing F: 0845 345 3193 over £21.75 billion, (which represents around half of the sector’s income) we are uniquely placed to challenge regulation which threatens the effective use of charity Company Registration No. 3182826 funds, drive efficiency and help charities to make the most out of their money. Charity Registration No. 1054914 For more information, please see www.cfg.org.uk

ACCOUNTANTS AND AUDITORS

Wilkins Kennedy Wilkins Kennedy deliver personal service and provide proactive and practical advice Chartered Accountants & to help charities achieve their objectives, improve profitability and overcome Business Advisers obstacles. John Howard Our dedicated Not for Profit group consists of a multidisciplinary team of experts T: 020 7403 1877 with first hand knowledge of and experience in the voluntary sector. E: [email protected] We understand the specific needs and ambitions of our not for profit clients and Michelle Wilkes adapt our services to suit each client’s circumstances. T: 01689 827 505 Our services include: E: [email protected] Audit and accounting, direct taxation, VAT advice, regulatory compliance and W: www.wilkinskennedy.com HR compliance.

BANKING

Santander Corporate Banking Santander Corporate Banking Picture a different kind of banking partner. A bank that listens, understands and shapes itself Contact: Damian McGann around you. A bank that doesn’t sell you products, but gives you solutions and has the T: 07809 493806 strength, in good times and bad, to deliver on its promises. E: damian.mcgann@ At Santander Corporate Banking, we’re forging a new era in Charity banking. We believe in alliance-leicester.co.uk developing true partnerships and will use our in-depth sector knowledge to understand your W: www.santandercb.co.uk organisation. We’re placing great emphasis on growing our team, expanding our expertise and putting more specialist Relationship Directors on your doorstep. For more information on the preferential solutions we have to offer Charities and other Not- For-Profit organisations please call Damian McGann on 07809 493806 or visit www. santandercb.co.uk CONFERENCE VENUES

MEET @ THE BOND The Bond Company Book one of our rooms for your next meeting, training session or conference. 180-183 Fazeley Street 10% discount for charities. Birmingham WORK @ THE BOND B5 5SE Rent friendly, flexible workspace in attractive refurbished T: 0121 766 7400 Victorian buildings. E: [email protected] Enjoy meeting and working alongside The Grand Union Canal W: www.thebondco.net in Digbeth, Birmingham’s Eastside Creative Quarter. Call Laura or Beth on 0121 766 7400 Email: [email protected] www.thebondco.net

directory_april_may2012.indd 2 4/5/2012 11:33:45 AM SUPPLIERS DIRECTORY

To advertise in the Charity Times Suppliers Directory contact Cerys McLean 07766 662 610 or Aisling Davis 0207 562 24262423

FUNDRAISING DATABESES

It’s great when most of your customers say they’d recommend you, but it’s brilliant when they say AdvantageNFP they ALL would* powered by Redbourn Business Systems Ltd Leading supplier since 1994, AdvantageNFP provides the AdvantageNFP Fundraiser, an integrated fundraising, membership & marketing CRM database solution; and AdvantageNFP Box Office, the The Priory, High Street, Redbourn, integrated ticketed event management solution. St. Albans, Hertfordshire AL3 7LZ 100% customer recommended*, we pride ourselves on our unmatched level of high quality service and support. T: (01582) 794229 Our customers include: World Development Movement, Birmingham Royal Ballet, Tring Park School and F: (01582) 794226 Skill Force. Over 175 organisations have chosen AdvantageNFP as their preferred supplier. E: [email protected] Our high quality, comprehensive solutions remain easy to use and offer a proven ability to grow as your Or visit our website: organisation grows, with a version to suit any budget, large or small and offering unparalleled value for money. Call today to chat with our friendly team of experts. www.AdvantageNFP.com *Source: Civil Society Charity CRM Software Survey 2011

FUNDRAISING SOFTWARE

Europe’s no.1 specialist software provider for the fundraising community ASI Europe Advanced Solutions International (ASI) is the largest, privately-owned global provider of web- 10 Greycoat Place based software for not-for-profits, and has served nearly 3000 customers and millions of London users worldwide since 1991. SW1P 1SB ASI Europe offers solutions for mid-sized to larger charities and fundraising organisations. T: +44 (0) 20 3267 0067 iMIS 15 E: [email protected] iMIS 15 offers larger organisations contact relationship management (CRM), fundraising, web, W: www.asieurope.eu and e-marketing capabilities in one upgradeable, web-based solution. Progress CRM ProgressCRM offers mid-sized organisations a packaged and upgradeable fundraising solution rated ‘no.1 for customer satisfaction’ by CivilSocietyIT magazine.

INSURANCE

At Ecclesiastical, we’ve been insuring not for profit organisations for 125 years. Today, Ecclesiastical Insurance Office we insure thousands of the nation’s charities of all sizes and complexities. Beaufort House Voted best charity insurer* for the last five years running by both charities and brokers, Brunswick Road we’ve worked closely with both to develop a flexible, specialist product that meets the Gloucester GL1 1JZ varying needs of different types of charities. Visit our website or talk to your We also offer charity-specific risk management guides and, in many cases, a free broker to find out more. buildings insurance valuation‡. T: 0845 850 0307 Speak to your broker for more information or visit www.ecclesiastical.com/charity E: [email protected] * In research conducted by FWD, an independent market research company, of those brokers and organi- W: www.ecclesiastical.com sations who named an insurer in the survey, the majority voted Ecclesiastical as the best insurer for charity

We protect those who help others. Markel (UK) Limited We offer three types of insurance policy for charities, not for profit organisations and Riverside West care providers: Whitehall Road ● Social welfare insurance: a comprehensive policy which can cover the vast Leeds LS1 4AW majority of liabilities you face, including abuse and volunteers. ● Not-for-profit management liability insurance: a policy which protects directors, T: 0845 351 2600 officers and trustees against alleged wrongful acts. E: [email protected] ● Community groups insurance: a specific policy designed for smaller organisations. W: www.markeluk.com/socialwelfare Policy benefits include care and health consultancy, employer helpline and PR crisis management. Social Welfare insurance from Markel. Ask your broker.

Stackhouse Poland look after 400 charities and “not for profit” organisations in the UK. Stackhouse Poland Limited Our specialist team arrange a broad range of insurance programmes for our charity New House clients, including property and liability as well as motor, charity trustee cover and travel Bedford Road policies for aid workers, etc. Guildford The Company also arranges insurance for a large number of corporate clients and has GU1 4SJ a specialist private client division advising affluent and High Net Worth clients on their personal insurance needs. T: 01483 407 440 Contact us for a free DVD outlining our services to the Charity sector and to discuss our F: 01483 407 441 10 point Charity checklist for insurance. W: www.stackhouse.co.uk Independent Regional Broker of the Year 2007 Independent Regional Broker of the Year 2009 Finalist

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To advertise in the Charity Times Suppliers Directory contact Cerys McLean 07766 662 610 or Aisling Davis 0207 562 2423

INSURANCE

Insight - Specialist insurance made simple Zurich Insurance plc People depend on your organisation, so it’s vital that you have the right insurance Zurich House covers and risk management plans in place to protect it. We understand that charities, voluntary groups and trusts are increasingly important to public service 2 Gladiator Way delivery in Britain, and that the call for greater accountability grows daily. Farnborough Hampshire Zurich understands the risks you face and has developed a range of insurance and risk management solutions to protect both you and the communities you serve. GU14 6GB Our Insight cover includes: T: 0845 600 3184 ● ● ● W: www.zurich.co.uk/insight Property ‘All Risks’ Employers’ Liability Money ● Business Interruption ● Public & Products Liability ● Personal Accident ● Trustee Indemnity ● Professional Indemnity ● Employee Dishonesty

INVESTMENT REVIEW SERVICES

Independent Charity Reviews CBF CBF provides independent investment reviews and training for trustees to assist with fund 50 Andover Road, management. Tivoli, Cheltenham, We can help you with:- GL50 2TL ● Reserves Policy T: 01242 263167 ● Developing a comprehensive Investment Policy ● F: 01242 584201 Investment policy review – aims & objectives ● Establishment of investment mandate for your manger to work with. W: www.cc14.co.uk ● Independent Search & Selection process – designed to help you look for the right manager ● Continual Trustee guidance to help monitor your investments, and keep up-to date ● Advice on Ethical & SRI approaches to investment ● Advise on Carbon reduction INVESTMENT MANAGEMENT

We have been supporting the charitable sector since 1926, and were one of the first Baring Asset Management Limited investment managers to establish our own charities team in 1968, a team that now manages over £1.06 billion on behalf of charities around the world1. 155 Bishopsgate We work in partnership with charities that operate in diverse sectors, whether you are a London national institution or a charity with more local aims. EC2M 3XY Our Targeted Return approach is designed to achieve the aims of your charity. Although Contact: Catherine Booth - many investment managers claim to offer an absolute or real return we have a strong and demonstrable track record of producing consistent returns that has been tried and tested T: 020 7214 1807 in both rising and falling markets. W: [email protected] We would welcome the opportunity to speak to you should you be reviewing your existing investment arrangements or merely want to hear a different point of view. Issued by Baring Asset Management (Authorised and Regulated by the Financial Services Authority). 1Provisional data as at 31/12/11.

Charities Aid Foundation Investments designed with charities in mind As a charity, CAF understands the challenges you face when it comes to investments. 25 Kings Hill Avenue Managed by our third party provider, the CAF Managed Portfolio Service places your capacity Kings Hill for risk at the heart of each solution. It provides: West Malling ● Returns based on capacity for risk. Kent ME19 4TA ● Asset allocation advice and ongoing portfolio management. ● Solutions using a combination of funds from some of the largest investment houses. For further information contact the Business Development team on: Alternatively, the CAF Direct Investment Service allows you to select from a range of investment funds specifically designed for not for profit organisations. T: 03000 123 222 This marketing communication is issued by CAF Financial Solutions Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, E: [email protected] Kent ME19 4TA. Company registration number 2771873 (England and Wales). CAF Financial Solutions is a subsidiary of the Charities Aid Foundation (registered charity number 268369) and is authorised and regulated by the Financial Or visit www.cafonline.org/investments Services Authority (FRN 189450). Telephone calls may be monitored/recorded for security/training purposes.

Cazenove Capital Management Cazenove Capital Management is an independent, client focused business providing specialist investment management and high quality investment advice. We have been 12 Moorgate investing assets on behalf of clients for over 80 years. Today we are one of the UK’s leading London EC2R 6DA charity fund managers. Specifically for charities, we offer an investment approach centred on our excellence in UK For more information, please contact equities and fixed interest. This is supported by a strong multi-manager team, providing diversification and access to other asset classes. Edward Harley or John Gordon Reflecting our commitment to the charity sector, we manage five Common Investment Funds T: +44 (0) 203 479 0102 that specialise in: ● UK equities ● Absolute return (hedge) funds E: [email protected] ● Higher yielding UK equities ● Property ● Fixed interest [email protected] W: www.cazenovecapital.com/charities We offer both pooled and segregated portfolios. Cazenove Capital Management Limited is authorised and regulated by the Financial Services Authority.

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To advertise in the Charity Times Suppliers Directory contact Cerys McLean 07766 662 610 or Aisling Davis 0207 562 24262423

INVESTMENT MANAGEMENT

Lothbury Investment Management Ltd.* is an investment manager of unlisted property funds Lothbury Investment Management Ltd with AUM of over £1bn**. We are a market leader with a team of professionals that has over 20 years experience of managing property investment on behalf of institutional investors including 155 Bishopsgate UK pension funds and charities seeking indirect exposure to the UK and European property London EC2M 3TQ markets. Implementing a core/active investment strategy, our flagship UK fund Lothbury Property Trust has delivered a consistent un-geared outperformance over Q4 2011, 1,3,5 and 10 Contact: Lucy Williams years of the IPD UK PPFI, Balanced Unit Trust Index Benchmark. This dual strategy is effective in T: 0203 551 4900 both downward and upward economic cycles as it is a flexible approach which capitalises on a predominately core portfolio of secure prime assets, alongside active management initiatives F: 0203 551 4920 that increase the opportunities for value. Indeed, the Fund remained open during the downturn E: [email protected] and has continued to take in new equity on a monthly basis during the last 18 months and W: www.lothburyim.com currently remains open to new investment. *Authorised and regulated by the Financial Services Authority. ** As at 31 December 2011

Quilter Quilter is a wealth manager with £7.6bn* in funds under management. Our clients include UK and international charities, trusts, private investors, pension funds and corporate institutions. St Helen’s, 1 Undershaft Award-Winning Charity Investment Management Service London EC3A 8BB ● Funds under management of more than £500m* T: 020 7662 6200 ● A diverse client base including foundations, religious orders, endowed and E: [email protected] fundraising charities ● A charity team with local expertise across a network of 13 offices in the UK, W: www.quilter.co.uk Ireland and Jersey ● Specialist investment management with ethical screening capabilities Quilter is the trading name of Quilter & Co. Limited. ● Guidance for trustees on preparing investment policy statements Authorised and regulated by the Financial Services ● Comprehensive reporting and access to portfolio valuations via our password Authority. Quilter is a wholly owned subsidiary of protected website. Morgan Stanley Smith Barney. ● A competitive and transparent fee structure * As at 31 December 2011.

Rathbone Investment Management Rathbones welcome charity clients 1 Curzon Street We endeavour to work alongside our scope of charity clients, giving direct access to London, W1J 5FB the professional managing your charity’s investments and to provide solutions and support. Throughout our network of UK regional offices, over 860 charities entrust Contact: Jenna McCabe £1.6 billion of funds to us, covering a wide range of charity sizes and charitable areas T: 0207 399 0195 within the sector (as at 31 December 2011). E: [email protected] W: www.rathbones.com Rathbones evolved into an investment management firm through the stewardship of the Rathbone family wealth. Having remained independently owned and part of a Rathbone Investment Management is FTSE 250 company, we have been able to remain true to the ethos built by the family authorised and regulated by the Financial based on Heritage, stability, stewardship and Trust. With these values we aim to forge Services Authority. strong, long term relationships with charities, from the national to the local.

Leading charity fund manager managing discretionary accounts worth £3.4 billion Sarasin & Partners LLP for 265 charities. Significantly, this represents over 25% of our overall business. In total, Juxon House as at 31 December 2011, we manage around £11.7 billion on behalf of our clients. 100 St Paul’s Churchyard Investment philosophy founded on three main strands: dynamic asset allocation, the London EC4M 8BU importance of recurring income and our well-established global thematic approach to international equity selection. Contact: John Handford Tailor-made solutions; via segregated portfolios, single asset class funds or two T: 020 7038 7268 Common Investment Funds - the Alpha CIF for Endowments and the Alpha CIF for F: 020 7038 6864 Income & Reserves. E: [email protected] Sarasin & Partners LLP is a limited liability partnership incorporated in England and W: www.sarasin.co.uk Wales with registered number OC329859 and is authorised and regulated by the Financial Services Authority.

Williams de Broë Limited Growth. Flexibility. Reward. Williams de Broë has been working with charities for decades and we continue to offer 100 Wood Street a traditional, comprehensive and cost effective investment management service. London EC2V 7AN Our dedicated charities team tailors its approach to meet your specific requirements and objectives. We can help with construction or amendment of your investment policy Head of Charity Services: statement, explain the impact of any ethical restrictions and liaise with the Charity David Edwards Commission on your behalf. T: 020 7072 7520 We also include within our standard service the provision of workshop tuition to ensure that E: [email protected] a charity’s staff meet the highest requirements in respect of ongoing training. W: www.wdebroe.com We value highly the personal relationships that we build with our clients and believe that through a bespoke approach we are able to formulate the best possible investment solutions.

directory_april_may2012.indd 5 4/5/2012 3:25:36 PM SUPPLIERS DIRECTORY

To advertise in the Charity Times Suppliers Directory contact Cerys McLean 07766 662 610 or Aisling Davis 0207 562 2423

INVESTMENT MANAGEMENT

UBS Charity focused, performance driven 1 Curzon Street Access all the investment insight and guidance your charity needs through our London dedicated team of experts, structured and ethical investment process and world- W1J 5UB leading research. David Rowe - Head of Charities The value of your investments may fall as well as rise. You may not get back the E: [email protected] amount you invested. T: +44 20756 87738 UBS AG is authorised and regulated by the Financial Services Authority.

W: www.ubs.com/uk-charities

PENSIONS

‘Making membership worthwhile’ The Pensions Trust Over 4,300 third sector organisations trust us to look after their employees’ pensions. Verity House With more than 65 years’ experience, we understand. 6 Canal Wharf Leeds We offer a range of trust-based products to cater for different customers’ requirements. LS11 5BQ Find out about our schemes which can be used for auto-enrolment - coming into T: 0845 123 6647 effect from 2012. F: 0113 234 5599 You can find out your organisations auto-enrolment staging date at E: [email protected] W: www.thepensionstrust.org.uk www.thepensionstrust.org.uk by clicking on Auto-enrolment. Contact us today to find out about our reliable and comprehensive pensions service.

RETAIL MANAGEMENT

Torex RBS Ltd Around £160 million* is spent in Charity Shops annually - are you getting your share? 24-26 Vincent Avenue Crownhill Sanderson provides retail management solutions to a number of UK charities, Milton Keynes covering EPoS, Head Office, Gift Aid and Ecommerce. MK8 0AB This experience means we are well placed to understand the particular requirements E: [email protected] of charity retailers. Our solution, Midas Charity, has been developed to address these W: www.torex.com requirements, it is simple to use, cost effective and helps maximise revenue potential. Twitter: @TorexRBS If you’re interested in EPoS, Gift Aid, stock management, reporting, selling online - or simply making your shops more profitable - call Sanderson today.

*Figures from the Charity Retail Association

RUNNING VESTS & T-SHIRTS

RUNNERPRINT-WINNER runnerprint / winner are probably the number one supplier of sublimated and screen printed running vests and teeshirts to charities throughout the UK. Victory House 246-250 Lowerhouse Lane Over the past 20 years our client list has grown to include most of the nation’s largest Burnley charities, but we also cater for the smaller organisation with less resources and are Lancashire happy to quote for minimum orders of 50 in either vests or teeshirts or other items BB12 6NG that we supply. T: 01282 412714 F: 01282 415131 E: [email protected] W: www.runnerprintwinner.com

ACCOUNTING SOFTWARE SUPPLIERS

PS Financials plc Used by over 400 charities in 39 countries, PS Financials are the authors of award winning Accounting, Purchasing, Budgeting and Reporting software. Charities deal directly with Isis House PS Financials benefitting from cost savings and a direct relationship, where they can Isis Way suggest improvements, which are incorporated in future product releases. Over 80% of Minerva Business Park the content of new releases results from charity user suggestions. Peterborough PS Financials is used by charities in: PE2 6QR ● International Aid and ● Faith/Religion ● Education T: +44 (0)1733 367 330 Development ● Associations and ● Grant Provision ● Care and Healthcare Institutions ● Voluntary services W: www.psfinancials.com ● Service Provision ● Museums and Venues Our software solutions integrate with other operational systems including ThankQ, Care and Raisers Edge.

directory_april_may2012.indd 6 4/5/2012 1:29:57 PM Advertise your services directly to our subscribers using our Suppliers Directory

If you are a supplier to the charity and not-for-profit sector and want to maintain consistent visibility amongst potential customers then why not include your company within the suppliers section of Charity Times.

Your entry would be listed for 12 months (print & online) and includes company logo, contact details and company description/products

Charity decision makers use this section to find suitable expert suppliers. So call us on 0207 562 2423 with your details and we will create a listing to ensure that your company is visible within this valuable resource.

Call us on 0207 562 2423

CFG ad Feb/March_Layout 1 23/03/2012 10:26 Page 1

INSPIRING FINANCIAL LEADERSHIP For all finance professionals – non CFG members welcome This 5 stream conference is a must for all finance professionals, adjusting to and managing the challenging CFG Annual climate within the charity sector. It is in these times more than ever that this guidance and support is most valuable, and with 25 sessions to choose from there is something Conference for everyone. Topics include: Pensions 2012, property management, 2012 tax and VAT update, social media, branding, impact, investment, accounting update, mentoring, HR and volunteers – and much more. 17th May 2012 – QEII Conference Speakers include: Mark Watts CEO of RSPCA, Andrew Centre SW1P 3EE Sentence Senior Economic Adviser PwC, and Andrew Hind Editor of Charity Finance Magazine. Alongside the conference an exhibitors from various service areas will Delegate rates - *early bird discount be available to help guide you on issues from accounting for CFG member & member colleagues* & tax, investment, insurance to IT. CFG members: from £147 To view the full Member colleague: from £194 conference Non CFG members: £254 programme and This event is kindly sponsored by CFG corporate: £368 book visit: Non CFG corporate: £525 cfg.org.uk Insurance without compromise

No need to compromise on cover We believe that charities and not-for-profit organisations need the flexibility and range of cover to suit their many and varied activities. Ansvar’s extensive range of CONNECT insurance products are specifically designed to meet them. If you are involved in a charity, church or voluntary organisation then start a conversation with your broker. Contact us today for your nearest insurance advisor who will give you full details of all The CONNECT Range Ansvar’s products and services. www.ansvar.co.uk

Use this QR Code and your smart phone app to go Business division of: direct to our website. Ecclesiastical Insurance Office plc Registered Office: Beaufort House, Brunswick Road, Gloucester GL1 1JZ Registered No. 24869 England Ansvar Insurance, Ansvar House, St. Leonards Road, Eastbourne, East Sussex, BN21 3UR Member of: Association of British Insurers (ABI), Tel: 0845 60 20 999 or 01323 737541 Financial Ombudsman Service (FOS) Email: [email protected] Authorised and Regulated by the Financial Services Authority (FSA)

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