Saturday, 11 October 2008

Getting through ; pushing our case.

At last the story about the trials and tribulations of charities is getting through . A .lot of good publicity yesterday about our plight . But it is concentrated on those that have have lost millions in Iceland ; the children's hospice with 6ml gone and the great Cats protection league with 12ml gone. This is great . But it is only part of the story.

A good meeting at the HM Treasury where Lord Myners says they want to help on Iceland . We have to go back to them with a more detailed position on the actual losses . We think it is much larger than being reported simply because many charities are keeping quiet about it . My Deputy did a brilliant job yesterday in the studios and with the press in talking about the problem and what Government need to do to support us . Our worry is that the Government will think that if they help out those charities who have lost deposits that is all they need to do . But that is a first step . We are all determined they must guarantee our losses. The meeting shows the key sector bodies working together ; Charities Aid Foundation , acevo and ncvo . This sends a powerful message.

But The Guardian and The Times carry main stores about our plight with good quotes from me . Dr Kyle is utilising his considerable media and networking skills to get on the airwaves ; ITN, Sky and BBC. And we both speak to most of the press , including the Sundays . The reality of politics is that unless it is seen as a major news story it is more difficult to grab a politician's attention .

We have had lots of messages about the other effects of the financial crisis .One member emails me to say they have lost a big commercial sponsorship from Lehman Brothers . Others report a continuing decline in donations , falling value of legacies and worries that corporate support will simply disappear.

So acevo carries on demanding an emergency fund of £500 ml to support those affected . I will be seeing Liam and Kevin as part of the getting to know you sessions that new Ministers have. So whilst normal business must continue ; I want to talk to them about driving forward service delivery through the sector , but I will also be stressing that action needs to be taken .

It is simply not good enough that the demands of councils and small businesses seem to be getting a strong airing and we are struggling to get our cause recognised. I also get a nice email from Nick Hurd , the new Tory sector spokesman . If you can get an idea of a person from an email he sounds a good guy and keen to support us , though I did notice in his email to my Policy Head that he wants to " hook up" , I guess an Oxford expression not current in my day ! I am seeing him Thursday and will brief him fully . We also need the Tory Front Bench to push our case .

My team back in the office have been fantastic in gearing up support . I end the week by emailing everyone to say thank you . We have seen a dramatic rise in requests from members to use our financial surgery . And members contact us in increasing numbers for advice .

It has been a gruelling week . But we all take great pride in how we have shown leadership on in this crisis . We have led the demands and promoted the story . Its not surprising I guess , as the Chief Executive will be the first person to realise the dangers and want to take action . And the CEO has the leadership role in taking steps to protect the staff and volunteers in their organisations , and crucially to see that services are protected.It is also greatly heartening to get emails from members who say thank you for the work we are doing to push the third sector case .

Now we will work with our colleagues in the sector to push home the message that we need support for our role in providing support to victims of the recession . I have responded positively to the call for a sector summit from Stuart Etherington . It will be held on Nov 24th .

As Dr Kyle puts it ; we are in a perfect storm where we face rapidly rising demand and falling income . It will not be long before charities start going to the wall if we don't get stuck in . So next week the campaign will continue.

But for now I intend to get out into a perfect English autumn and take the happy and sweet Sparkles , my puppy ,for a walk on Clapham Common. She has been bust untying my laces as I blog and shows signs of wanting to eat my toes , so time for walkies , as they say. I am in London this week as the Gas Board want to dig up my kitchen in the Stockwell flat . that will undoubtedly not be fun .

Thursday, 9 October 2008

Icelandic chill and Jacqui warmth

Bad news from some members today . We hear from 5 charities that they have had investments in Icelandic banks which are now lost . These total over 30million. One major national charity has lost £12ml and another £4.5ml which amounts to 21% of their total reserve . This is serious news . I send off an urgent letter to the Chancellor , as does the Charity Finance Director's Group , asking for charities to be compensated for these losses.

But this is only the " tip of the iceberg " as my policy guy in felicitously puts it . There will be others who have lost out. And in the meantime demand for charity services rises . Just one example from a member who phones me today ; his trust have a scheme of providing financial help to people . In the last 4 months he has seen a 400% ( yes , that is 400% ) rise in applications over the same period last year . They cannot cope with supporting people at that level . And this is before the real recessionary problems hit .

So today I make a strong plea to the Home Secretary for the Government to step in . i outline our proposed package ; £500 ml in emergency support to organisations , a rapid reform of gift aid so we get all the unclaimed tax breaks the Treasury are sitting on , guarantees of deposits lost and a voice on the national economic council .

She understands the problems we face , I tell her on the way up to the lunch in the RBS lifts that we have members who have lost large sums in the Icelandic crash . She says she will ensure this is passed on . Although she did arrive with a large handbag I'm afraid it did not contain the money I want . But she is on side. We have 30 chief executives present .

Jacqui is a really impressive politician . She is very much on message with our mission as third sector and out desire to work to cut crime . We talk about how best to tackle extremism by working in communities and with radicalised youth . We talk about how we must tackle the root causes of gang culture , and how that requires intensive work by third sector bodies who need to gain the trust of alienated youth . Its a good session .

What is particularly impressive is the passion and conviction of my members and the professionalism of their approach . Not one whinge . It was all entirely positive in wanting to work with Government to sort major social problems. What can be so depressing with some third sector meetings with Ministers is that people come with their whinges and demands and fail to engage at the level needed . A professional approach always wins . That is what acevo stands for . It's what works. And Jaqcui will go away thinking this is a bunch of people who can deliver . Its a positive image. I know from Ministers that they hate it when all they ever get is people dumping their problems and moaning about how useless Government is , when what they would like is to hear how we can work together on solutions.

That is what we need to do in the current recession . So I get back to the office and me and our policy team get down to planning how we can support members best through the crisis.One aspect of this is to stir up the media and get them reporting on the problems w face and how the sector can be used to support the victims of this deepening recession . The Times and The Guardian are interested. And I give the wonderful Today programme a full brieifing on the problems we face. This is not about media for media's sake , but about how we grab the attention of politicians - they all listen to Today and read the press. At least the national news tonight picked up on the charity losses , even if the main focus on local authorities , who are much better placed to cope!

Tomorrow I am going to brief people at the World Economic Forum in Geneva ; this is a global problem for the third sector too .

Wednesday, 8 October 2008

Recession again,.but we will see it through!

Our campaign for support in the recession for our sector continues. Yesterday we sent a Briefing to all MPs on the need for emergency support for the sector to help the victims of recession . This was in advance of the Cabinet Office Questions in the Commons today . It was gratifying to see that a number of MPs used our briefing so there was a question about a voice for the sector on the National Economic Council and the need for financial support . It was Liam Byrne's debut as Chancellor of the Duchy of Lancaster. He should have used it to announce a package of support , but he didn't . However I suspect we are pushing at an open door and we will carry on this campaign .

We now need to broaden it out across the sector and get the key players engaged . We have alerted our members to the need to tell us the effects for them , whether in the big national charities , or local or community organisations .

Listening to the Today programme the sums of money being banded around are mind boggling . As they point out the package for the Banks is 4 times the annual spend of the entire NHS. . In the meantime our proposal for £500million seems modest . In fact these days anything without a billion after it seems positively modest .

We have an acevo lunch tomorrow with Jacqui Smith , the Home Secretary. i am going to use that as an occasion to push our case for action . And it is ironic that we are having lunch at RBS , our strategic partner in the City !

The other key event for the sector this week was the successful second reading of the Unclaimed Assets Bill . This is a crucial piece of legislation which will ensure that the money that lies around in dormant bank accounts , unclaimed over the years , can be put to use for the benefit of the country , rather than the narrow advantage of the banks. We have been arguing for the establishment of a Social Investment Bank , to use the money as capital for the broad third sector. As a sector we have poor access to capital . Futurebuilders was set up as a way of getting capital into the sector. But even with Futurebuilders , venturesom and the Charity bank the supply of capital is modest in the extreme. yet if we can unlock more supply we could see healthy expansion and a virtuous circle of increased investm,ent and growth .

I have agreed with Sir Ronnie Cohen that Futurebuilders need to work with him and his social investment vehicle to support the Bill and to promote the Social Investment Bank . We will work with others to do this . It would be too easy for Government to pass the Bill and then simply leave it to moulder whilst the Banks avoid taking any action to disgorge the money . Yet at this time the Banks need to ensure they regain the trust of the public. Establishing the Social Investment Bank could be one of the finest achievements of this Government for the sector. Lets ensure they don't bottle out.

And ending the blog I can't but fail to note the rather splendid comment posted by Damian on yeasterday's blog. He spoke of optimism that our sector will see through the bad times because of our passion , imagination and determination . That is , for me , the hallmark of today's modern professional third sector chief executive.

Tuesday, 7 October 2008

Oxo Tower and more recession gloom

Its a 2 dinner evening , or rather would be if I were that gready! It was the Office of the Third Sector's strategic partners meeting. Held at Coin St ( which is rapidly becoming venue of choice for the third sector ) ; there is a reception afterwards , at the Oxo Tower and then dinner . The Oxo Tower is actually run by Coin St as part of their social enterprise so one can wine and dine in the knowledge that profits return to the local community . As it should be at this time of economic crisis.



It is my first official meeting with the new Third Sector Minister , Kevin Brennan , so i wish him well before he disappears to vote . it is Cabinet Office questions tomorrow . We have done a briefing for MPs on the crisis that looms for charities and so hope this come up . We have done major press briefings on this and we are asking government to set up an emergency fund of £500ml to support charities that face both rising demand at a time of recession , as well as falling income . we also want to see a voice for the sector on the new National Economic Council .



It is hard to get our voice heard amongst the insistent demands of the Bankers. I was glad to see a good piece in the Times that highlights the Charities Aid Foundation and acevo survey . It was good also to see a supportive comment from Stuart Ethrington of ncvo on the need for the third sector voice to be heard . less delighted to see someone denouncing our calls as a " gimmick " . Why does the sector find it so hard to come together at a time of serious trouble for us all ? Somehow I doubt if anyone in the business sector denounced the recent £12billion package for small business as a " gimmick " . But strong signals from members that this is important for them and we should keep going in arguing for support . It is the CEOs of smaller organisations , with weaker finances and small reserves that will be particularly worried . We owe it to them to do all we can in our various leadership positions to support them .

This will be a long term campaign . We are already planning how we can push further . We must get action .



The evening at the Oxo Tower is fun and I get a chance to chat to various of the sector luminaries ; Ben Kerrnigan from ncvo , Julia Neuberger , Jill Pitkeathly, Bert Massie , the Fundraising Institute , a number of my members like the great Cambridge House and UnLtd.



I talk to Lindsay of the Fundraising Institute on gift aid .With falling donations it is a scandal that much of the potential tax back that charities should be getting goes unclaimed . Lindsay points out that most higher rate taxpayers do not claim back their charity donations . Why do they get this back anyway . A simple reform would be to ensure all the tax is returned to the charity , We agree we need a further push together on this and we will meet to discuss further.

I eat the first course , but as I have Australian friends staying back at the flat I go back for the rest of dinner !

And news today of changes on the Tory front bench . Greg Clark is moving on to shadow Ed and we have a new shadow Third Sector Minister , Nick Hurd , son of Douglas who was the Charlbury MP before Cameron . I'm looking forward to meeting him ; Classics from Exeter ,Oxford I note but this must not be held against him .

And talking of Oxford, my nephew Alexander has finished his exams for a Fellowship at All Souls . This is such a prestigious post there is huge demand and so fingers are crossed . The exams are famous . The question in one paper is always just one word on which you can write what you like . This year it was " novelty " . The question in another paper was " Does the moral nature of an orgy change if the participants are wearing Nazi uniform? ".

Saturday, 4 October 2008

and what of the victims of recession?

I wake to a text from Phil Hope telling me he has been appointed the Social Care Minister ( Ivan's old job ). It is fantastic Phil has this post . It is one of huge importance for many of us in the sector . Ivan has done great work in promoting the third sector and in supporting the introduction of individual budgets for social care clients. This is radical and important work . Phil will carry it on . He has been an extremely effective Third Sector Minister. I like him and acevo has worked well with him . So it will be good that we shall stay in touch in the new job.

Liam Byrne takes on Ed's job in the Cabinet Office . This is also great news for the sector. Liam is a true believer. He strongly backs more service delivery through the third sector. He will give this agenda a renewed push . I have known Liam for years and he was one of the Ministers at the now famous meeting between acevo and Tony Blair in Downing St which led to the creation of the Office of the Third Sector and the public service action plan. So an early meeting beckons.

And I send a text to Ed to congratulate him on a really exciting appointment. It will be a real challenge , and he has the intellectual skills needed to master a brief that is important to all of us; climate change. It will require decisive and firm action . So go for it Ed . Just follow the advice of all the superb third sector environmental groups and you will not go far wrong.

All the talk is of the problems of the banks and building societies , bail outs and support for people who , in the good times , gave little thought for their actions beyond the next bonus. And now we are absorbed in their probl;ems and their insistence on being supported. Of course we need to ensure a recession does not turn into a depression ,.Of course we need to bolster our economy . But what of those who are now losing their jobs? Those who have real struggles to meet rising bills? The elderly or disabled who have rising panic about how to meet the winter fuel costs?

Where is the emergency support for them ? We see a Government providing guarantees for savers. How about a gaurantee no one will die this winter because they cant afford to heat their house?

I am staggered that in all the plans for the new National Economic Council there appears to be no role for the third sector. It is essentail that this new council also look at what needs to be done to support those who will suffer as a result of the recession . I am on Sky News on Friday calling on the Government to look at an emergency funding package ; to support more debt counselling , fuel poverty , unemployment and homelessness support. I am being interviewed on Bloomberg on Monday to make the same point.

This is crucial because , as I was telling Polly Toynbee ,who rang on Friday ; demand on the services of charities is rising at the same time as our costs go up and donations go down . acevo and the Charities Aid Foundation conducted a survey of Charity CEOs 4 weeks ago . At that stage we found;
* over 70% reported rising demand
* over 70% report significant increases in costs
* one third report a fall in donations.

I guess it is not surprising that donations will fall , but this is coupled by a likely fall in commercial sponsorship and support . This is the time when we see whether all those "corporate social responsibility " statements that companies like mean anything! I shall be using my Monday interview with Bloomberg to ram this message home.

And if public spending starts to decrease then we can expect many local authorities to be cutting grants ( always the problem of grants not contracts ) .

So I am writing to the PM to ask him to ensure the new Economic Council look at how to support the victims of recession and crucially ; to look at how we use the Third Sector and how to channel more resources through us to those most in need.

It is not just that Government needs to do more in emergency support . We need to redouble efforts on giving . Persuade the public to keep up the level of donation . And how about the Government getting a grip on gift aid and the huge problem of the unclaimed tax benefits . I have long argued for action to increase take up .. The Tories have said they will act on this . So now is the time for the Government to act itself.

At least those with contracts have more protection , particularly those with 3 years or more . And I would hope TSOs look at opportunities to expand and promote their delivery of public services which are clearly needed at a time of growing recession . This has always been a problem with grants : the upside is the relative ease and lack of bureaucracy . The downside is that it is a form of patronage that can be as easily removed as given . How many Foundations will continue to give grants I know of one London grant maker that has stopped making any more grants. Others may follow , adding to the gloom in the sector.

The sector now needs to gear its loins and demand action . acevo will be taking this forward next week . We have already set up a series of seminars for members " Leading through a recession". They are intended to provide practical advice and support to those CEOs now feeling the pinch , or worried about how sustainable they are . In Futurebuilders we are looking at how we can support TSOs who want to merge or form alliances. You can expect a big growth in mergers ( and acquisitions ) over the next few years . We need to ensure this happens in a structured and effective way .

But to end on a positive note. I have always been struck by the inventiveness and resilience of the third sector CEO. If anyone is able to cope with falling resources and rising demand it is our sector. We are experienced in extracting blood from stones. We will carry on in adversity . And show the public and private sectors our mettle.

Its a cold chill day in Charlbury , but the sun is shining. Its a metaphor for us , chill times ahead but the sector will keep on its brilliant work .

Friday, 3 October 2008

Honours and the great blackberry hunt

Disaster . I arrive in Charlbury and my blackberry goes dead during a phone call . I have left the charger in London . Horror strikes as I realise that a weekend of no emails and phone calls looms. So I set off in search of someone who might have a blackberry . I try the local pubs; I am greeted with a mixture of bemusement or horror. Blackberries grow on bushes up here . Why would I be wanting to pick them in the dark . And why with a charger ? So no joy . And then it is off to find the one and only local public phone . It looks decidedly disused .I feed it large sums of money which it eats with alacrity. People walk past and stare at this solitary figure , puppy in arms in a phone box. Sad.

The hunt resumes in the morning , and this time with success as I find someone in GWP , a mining consultancy . Joy unalloyed . Yet perhaps the news , relayed quickly to my staff, is not as warmly greeted ? Gone the thought of a Friday without insistent emails from the Boss.

Anyway I discover that my Blog is now being read in Charlbury . The proprietor of the excellent Evenlode Books , a marvellous little bookshop , indeed a minor national treasure these days ,has put a link on his site to other Charlbury bloggers . So when I go to buy a loaf in the other minor Charlbury national treasure ,The Good Food Shop , I am warmly greeted with the news I have another reader!

I enjoy Desert Island Discs. This morning it was Miriam Margoyles. A star. I have followed her career since the early days when , 36 years age, she signed my nomination papers to stand for Lambeth Council in Clapham Town . My other proposer was none other than the formidable authoress Angela Carter. Clapham is like that ; full of assorted literati and glitterati. The rest is history as I was elected , rather a surprise to me as I only stood at the last minute! Miriam is such a treat this morning. The voice and the mimicry , and her ironic self detachment mark her out as a real marvel.

I have received a letter telling me the Cabinet Secretary has approved my appointment to the Honours Advisory Committee for another 3 years. I have been on the committee that makes recommendations on Honours for local government , the police and fire services and the voluntary sector. It is an interesting appointment and one I take very seriously as it has huge responsibility to ensure effective and proper recommendations.



The Honours system is wrapped up in more secrecy than it need be ; yet that is often only a perception The reforms of the system introduced a few years back were aimed at making the system more open . It meant that the committees that make all the recommendations were opened to non executives to bring in outside skill and knowledge to supplement that of the Permanent Secretaries and others who had been the lead members making the decisions. It is easier than people think to make a recommendation and I have encouraged my members to put people forward they think deserve national recognition.



I am a strong supporter of the system . Indeed I am an opponent of those who argue fora change of name from" Empire " to something else. This is a system that brings enormous joy to the many in the sector who are recognised for the contribution , usually largely voluntary , they make to the nation and to society . To receive an Honour from the Monarch is a source of enormous pleasure and pride to those fortunate to be selected . I know this from my good friend the Talented Mr Fielding who was awarded an MBE after he had become the first non Japanese person to win the international aikido championships .

As well as the many brilliant examples of voluntary work and contribution I also believe that those professionals who work in our sector should be rewarded too .So I have argued for effective recognition of the many talented CEOs and workers in third sector bodies. They deserve recognition in the same way that Police Chiefs or Local Council CEOs get recognised .One of the criticisms made is that people sometimes just get the gong as part of rations . I know , from the very strong scrutiny that every individual honour gets ,this is wrong and does not happen .We are always clear that we want to award for more than just doing the job . There needs to be a real personal commitment and achievement . But I also agree with the Prime Minister , who has argued for more recognition of the "unsung heroes". People who selflessly contribute to society over the years.



So I encourage acevo members to make recommendations _ and you can do this as well . In fact it is easier than you might think . There is even a form on the Government website under "Honours ". If I had more dexterity on the blog I would put in a link.....go for it.

Thursday, 2 October 2008

Working with the Civil Service

Last week we held a Strategic Away Day with top civil servants; thinking about the role of the sector, the day had been co- organised by acevo and the Cabinet Secretary, Gus O'Donnell (who attends for the whole day, despite having just flown back from Afghanistan). There are eight Permanent Secretaries and other senior civil servants and 15 drawn from acevo's CEOs. The day starts when we pick up the Perm Secs in a bus in Whitehall. This is organised by Hackney Community Transport; we are off to Coin Street - a fantastic social enterprise in Waterloo. Ian Tuckett , the CEO there starts the day off by talking about how he has built up Coin Street into a powerful social and economic force.

My presentation sets the theme for the day "The power of the Third Sector ". I am unapologetic about our role, our strength and our future. I tell them they often underestimate how big we are- 1.5ml staff and a £42billion turnover. We are an economic and social force. So what stops Departments making more use of this force? And what problems do Government Departments find in dealing with the sector?

Clare Tickell from Action for Children and Tony Hawkhead from Groundwork UK produce superb presentations on their work. The discussions that follow are what I later describe as "high octane, high content".

There are a number of discussions; on the need for more mergers partnerships and alliances, how to promote interchange between civil servants and the sector, how to encourage civil servants to become trustees and how we ensure our input into policy development continues as well as our delivery role.

There is debate about potential changes in government but the civil servants are models of propriety here! We merely point out it is our job, difficult though that can be, to work with government, whilst helping the opposition to develop their policies. There is also interest in our global leadership role as a sector. I point out the growing links acevo has built up with other governments and our role in developing leadership in civil society in the Balkans and in Africa. It's an area I say we can be proud of and a little flag waving for the UK third sector is definitely in order. There will be further such days and indeed I am now pursuing other such Departmental initiatives. This is very much about the practicalities of leader to leader peer learning.

Campbell Robb, from The Office of the Third Sector, and I are drawing together then themes and actions to make sure the day translates into practical progress. But already I know various of the participants have made links and intend to follow up contacts. Rob Owen, the dynamic ex Investment Banker, (bet he is glad he got out) who runs the St Giles Trust gets the prize though, he has asked the Cabinet Secretary to visit the Trust. Gus will be following a long line of Ministers and Shadows who have beaten a path to the door of this great organisation finding work and support for young kids at risk of criminal activity or having been in prison. Rob makes a rather simple point; his project can demonstrate stunning outcomes. If he was in the private sector people would he throwing money at him to replicate and to up scale. But as it is he struggles for every penny and whilst he could expand the capital and the contracts limit his ambition. This cannot be sensible.

We have an interesting discussion on whether you can up scale innovation. What is it about great local projects that can be up scaled, or do yes the unique passion and commitment when you do that. It's an interesting point and I'd welcome feedback from blog readers.

Getting back to work yesterday from an intellectually charged lunch with the egregious Nick Wilkie (who runs London Youth; we discuss the benefits of National Service!) . I discover a very flattering review of my blog "this ever popular blog". See link. http://www.charityfinance.co.uk/home/content.php?id=2278&pg=15&cat=58