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On a Mission 18 October 2012 Lancaster London Hotel 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 Overall sponsor: The Charity Times Awards are FREE to enter and there are 23 categories this year including four new categories: International Charity, Social Investment Initiative, the Big Society Award and Consultancy of the Year. The Charity Times Awards reaches its thirteenth year in 2012 and this highly successful, popular, and growing annual gala event will be bigger and better than ever. The Charity Times Awards continue to be the pre-eminent celebration of best practice in the UK charity and not-for-profit sector. Sponsor: We recognise that it is the leaders within charities who are responsible for coordinating much of the charitable activity throughout the UK and as the engines of the charity sector; it is at this level that the Awards are targeted. 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] Enter now: www.charitytimes.com/awards 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 Published by Perspective Publishing, 6th Floor, 3 London Wall Buildings, London EC2M 5PD www.perspectivepublishing.com Managing Director John Woods Publishing Director Mark Evans Average net circulation of 10,373 copies for July 10 – June 11 www.charitytimes.com 03 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.
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