Press Release

The NCVO Bursary Winners’ Debate: Small Charities Have Their Say

22 September 08

It was important to debate the provision of support for small charities, Phil Hope MP said today. The current difficult economic climate meant that small charities would be all the more valued in the provision of vital services to communities, he said.

The Minister for the Third Sector was speaking at a Labour Party Conference fringe event entitled ‘The NCVO Bursary Winners’ Debate: Small Charities Have Their Say’. The meeting included contributions from representatives of five NCVO bursary winners, and it was chaired by the Chair of NCVO, Sir Graham Melmoth.

Following on from the Government’s Third Sector Review, it was apparent that there were a number of important issues within the third sector, Mr Hope said.

A key issue was the need for third sector organisations to provide an audible voice for those they were trying to serve. Unless vital opinions were heard, the Government could not respond to their needs, he explained. Mr Hope urged charities to be as verbal as possible, and said that they should never be afraid to bite the hands of those that feed them.

It was important for charities to remain independent, even if they were in service agreement contracts, he stressed. Having a contract should not prevent them from representing their cause. Charities were innovators, and should remain that way, he said.

The subject of funding was always high on the agenda for the third sector, Mr Hope continued. Larger organisations often received a large proportion of the funding available, meaning that the smaller ones often missed out. This problem could be remedied by Grassroots Grants, he said. This was a volunteering funding programme designed for charities with a turnover under £20,000. Applications could be made for between £250 and £5000, which would be distributed by local organisations, he stated.

Mr Hope went on to explain that endowment funds were also being initiated. Sums of money would be given to the distributors that they could allocate, he said. Businesses could contribute to the fund, which would be matched by the Government, and the interest collected could be used for more funding, Mr Hope said.

Mr Hope wanted three year funding agreements to become the norm in order to sustain charities and to help them continue their work.

There were local compacts to represent the implementation strategy of the National Compact, and these were tasked with ensuring that local councils provided third sector organisations with the support and money they needed, he said. A review of the current way in which Compact was delivered would take place, he added.

Mr Hope said that councils could now choose to be assessed according to certain criteria. Part of these criteria could include how they support the third sector within the community. If charities were based in areas where their council had chosen to be judged on this, then they should ensure that they were held to account at every opportunity, he urged.

The Minister noted that he heard the Conservative MP, Oliver Letwin, say that charities should be used more in the provision of services because they were cheap. Mr Hope strongly stressed his belief that this was not the reason that the third sector was so important. Third sector groups provided an invaluable wealth of expertise, and they should not be exploited because they were charitable organisations, he said.

First hand accounts of experiences within the third sector were provided by five representatives of NCVO bursary winners. These included MATCH, SODIT and What About the Children? They raised some of the issues within the third sector, including the positive impact that their work can have on individuals and communities, and the need for training.

Mr Hope responded to these accounts, saying that it was imperative that charities highlighted the tangible benefits of their work for society. A robust evidence base should be created to exemplify the vital role they play, he said.

The Minister highlighted the Train to Gain scheme, explaining that money was available for the third sector to provide training for staff and volunteers. Charities could sign up for training needs analysis, and consequently provided with the appropriate support, he said.

Mr Hope went on to say that the Charity Commission not only regulated charities, it also supported them. The Commission had become much better at helping charities in setting up, and provided free support and advice when required, he said.

He also highlighted the Future Builders scheme, observing that any third sector organisations bidding for contracts could turn to the scheme for support and advice in the preparation of bids.