UDC Business Solutions Manager Talks To Connected
29 March 2011
Dr Amanda Baxendale.
The Third Sector is going to have to be more imaginative and take a lead from the private sector in finding innovative solutions ...
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"The climate is so hostile in the UK economy at the moment that even month by month predictions about what is ahead offer no guarantees for almost any organisation.
"The Spending Review, current economic climate and fragile confidence mean that what used to be guaranteed public spending budgets are no longer guaranteed. With the big squeeze in public funding on the horizon, recent news headlines nationally suggest that local authorities like Manchester will be forced to close libraries and leisure centres because of a lack of money.
"The Community and Voluntary Sector, also known as the Third Sector, is particularly vulnerable in such a climate. As the new financial year beckons and the cuts begin to take effect, charitable organisations will see budgets slashed, redundancies come into force and their future operations threatened.
"Coordinating groups such as Derbyshire Learning and Development Consortium and Community Action Derby can offer the Third Sector in the region access to support, funding and key information. Charities may also think about setting up their own social or business enterprise to generate an income stream to fund their core charitable activity. For example, a care charity supporting the elderly might set up a business that offers or develops assistive technology; gadgets and monitoring equipment that enable the elderly and infirm to live more independent lives.
"Contraction of the sector is not inevitable. However, a lot hinges on how quickly organisations reposition themselves in the marketplace. The Third Sector is going to have to be more imaginative and take a lead from the private sector in finding innovative solutions, but I cannot envisage the sector taking on aggressive business models or techniques to succeed as this would undermine the sector's ethos.
"There is much potential for charities to work more closely with business for mutual benefit. Many marketplace trends come from large corporate organisations and filter down, such as corporate social responsibility. Large companies set up large divisions and fulfil commitments in a way small businesses may not have the resources to.
"Charities could look to work with SMEs to fulfil CSR and other objectives. It is not just about finding funding streams, they can also allow them use of their company resources and employees taking time out to take part in voluntary opportunities. Charities can also swell the ranks of volunteers by offering opportunities for students, graduates and jobseekers to enrich their CVs and help make them more employable.
"The added challenge facing this sector is the Government's desire to create The Big Society; as the actual framework to be able to back the vision and make it happen appears yet to be set in stone, so charities do not have a clear view about what is required.
"The Third Sector must act now to position itself as strongly as it can for the coming years of austerity. The University of Derby Corporate hosted a recent conference to discuss the impact of The Big Society and the current challenges facing the sector.
"The University's community relations academic experts are working with the sector to create business development courses to help make them more robust and adaptable in the current climate. The Third Sector organisations who are most innovative and have strong leadership will help shape what The Big Society is, for the rest to follow."
