The House of Lords Select Committee on Charities released its much anticipated report, Stronger Charities for a Stronger Society on Sunday 26th March.
Localgiving is delighted to have contributed to this report. Much of the evidence we gave was derived from our 2015 Local Charity and Community Group Sustainability Report.
We are proud to have been able to represent local charities across the UK and advocate on their behalf.
Stronger Charities for a Stronger Society is wide ranging in its findings and recommendations. The report gives 42 recommendations on key issues affecting the charity sector, echoing many of our own findings.
It is positive to see the unique value and needs of small, local groups acknowledged and addressed throughout the report.
Below we highlight some of the key findings most relevant to small, local charities
You can read the full report here.
The report recognises that the “The commissioning landscape is skewed against smaller charities”. The shift towards large scale contracts and payment by results has excluded many smaller groups.
The report recommends that commissioning practices are reformed to give smaller charities greater opportunities. This includes a revival of grants, smaller scale contracts and an increased focus on impact and social value rather than cost.
The report also recognises the need to put measures into place that reduce the “risks of larger organisations exploiting smaller charities through the commissioning and subcontracting process”.
The capacity of the charity sector to embrace digital technology varies widely. Many small groups lack the skills and confidence to fully benefit from technological advances. The report recommends that the Big Lottery Fund supports the sector’s infrastructure bodies to share knowledge on innovation and digitisation.
While the whole sector should aspire to a high standard of governance, larger charities must be held to a different standard to their smaller counterparts.
Small charities would benefit from having free access to a template induction process for trustees.
Social investment is a useful tool but is unsuitable for many groups – smaller groups particular will not be ‘investment ready’ without significant extra resources.
The report recommends that the Government consult more widely when making legislation and take time to understand the full impact of new laws on smaller groups.There is also a recognition that most small and medium group’s primary relationship with government is through their local authorities and therefore there should be closer consultation between relevent government departments.
The report argues that further regulation would place “a substantial bureaucratic burden on small charities”. Moreover, concerns were expressed about the impact of a levy on small- and medium-sized charities.
If the charity commission chooses to adopt a charging model it must “ensure that the burden does not fall upon small charities which will not be able to afford it”.