Thursday, 29 April 2010

April's thoughts - exactly how like business are charities?

I was in conversation with a local businessman recently discussing the economic situation and prospects for both our organisations. He said ‘of course it’s different for us in private business’. His inference was that charities somehow had it easy. Charities are seen in a different light from private business and I agree they are different, but my question today is how different?

Charities don’t exist to make profit but they do have objects they want to achieve and funders who measure their success. Perform poorly and the money stops coming in.

Charities may not have shareholders, but they do have stakeholders, people and organisations that use and fund charities activities. Charities ignore their shareholders at their peril.

Competition is often seen as something that happens in a cut throat way between supermarkets and other businesses. However many charities compete with private businesses in the open market for contracts and against each other for support from the public.

The pound in people’s pockets is being spent with greater discernment as a result of the recession, but successful retailers and successful charities have still been able to increase their income and sales.

Globalization and the growth of multi national companies have strongly shaped the business world, but it also is something that affects local charities. We have a slow increase in national charities winning contracts and providing services in the county. But what happens when head office decides Cumbria is no longer a priority and a service closes (as recently happened with a national children’s charity). Our indigenous charities by their very nature, as with our locally owned businesses, retain a loyalty to the people they serve.

Charities need to build brands, develop the markets they serve and sell their services just as private businesses do. Innovations in social care, education and the environmental movement have all come from charities. Many of our charities are as entrepreneurial and quick on their feet as any modern business. They are able to spot an opportunity and respond accordingly. Their investment capital may not come from a bank or the sale of shares, but rather a grant or a legacy.

Businesses and charities all operate under the same legal framework. Charities quite rightly receive no concessions when it comes to the law and health and safety. Charities are exempt from corporation tax but pay VAT like all other businesses.

One area which charities receive significant scrutiny over and which passes almost without comment in the world of business is that of administration costs. No one wants to see money wasted, especially if it’s being given to a charity. However no one asks the check out operator how much does Tesco spend on administration when they buy their groceries. Very rarely does anyone ask ‘is there enough money spent on the management and administration of a charity’. However a lack of administration can be far more dangerous than too much.

I would like charities to be closely scrutinized to check they are using their money well, but with the recognition that they operate in broadly the same world as businesses.

Our grant making ethos - do you agree?

Grant aid is the life blood of many charities. The most successful charities draw in millions of pounds in grants. When local people get together to develop a project one of the first questions asked is ‘can we get a grant for this?’

So how do people set out on the journey to find some money for their project and what experience do they have? I run a grant making trust, so this is a subject close to my heart. I’d like to share some tips and hints for people wanting to be successful in their fundraising.

Many applicants are very humble and some approach the exercise as if they were coming forward with a begging bowl. I would like people to be confident, proud and bold in describing what they want to do.

Some funders seem to give the impression that their purpose is to hold onto their funds like grim death. They make their applicants jump through a thousand hoops before, with one last painful gasp; they apply the signature to the grant cheque.

People just need to tell me clearly why they want to run their project, what problem it will address and why their solution is the right one. What budding applicants need to remember is that trusts and foundations exist to give out money. We want to form positive relationships and partnerships with the groups we fund. My own organisation gives out money donated from individuals, businesses and public bodies and I need to be able to tell the people who gave us the money what we’ve been able to achieve in partnership with the groups we fund.

We want an open and honest dialogue with the groups we fund. If things go wrong we want people to tell us so that we can learn together. We report successes and failures to our Grant Committee. If you let us know why things went wrong and what you’re going to different next time then it is more than likely we’ll give you a second chance.

The Community Foundation recently held a celebration with community groups that had benefitted from the £2.5m Nuclear Management Partners Community Fund. The Fund has given out £850,000 to 63 groups and £70,000 to 69 individuals in less than a year. The range of activities supported is fantastic; from young people experimenting with running their own businesses through the Young Enterprise Scheme to Age Concern recruiting and training volunteers to develop new services.

Some of these organisations have received multiple grants from the Community Foundation over the last ten years. A local business leader leaving the event told me how the evening had a real family atmosphere. I asked him what that meant and he said ‘you know them and they know you. Things are always easy between you, but most importantly you care about each other’. I’m delighted we have that type of relationship with the groups we fund and want it to continue that way.

Thoughts for February 2010

I’ve spent three months away from Cumbria and returned to a county once again rocked by disasters. The resilience of our communities has once again been tested.

The Community Foundation has run the Cumbria Flood Recovery Fund and we are close to collecting £2m for the appeal. Over four hundred people have had support from the Fund and more than £650,000 distributed. The generosity of Cumbrian people and businesses has been evidenced again and I’d like to say a huge thank you.

Whilst away I travelled in Morocco and Australia and what we have experienced is sadly not unique. These countries have experienced extremes of weather. Australia has had both drought and floods and communities I visited on the edge of the Sahara had gone seven years without normal rainfall.

The shared theme in all three communities has been people’s wish to help and common humanity. I think this wish to help is in part stimulated by an understanding of suffering and what it means not to have things.

I travelled in the Atlas Mountains of Morocco with a group of University students. It was very interesting to see how these young men lived their lives. All of them were poor by any standard you would use in the UK. However they threw themselves at life with vigour and energy. They were particularly keen to learn and improve themselves. I know University students in the UK have to work hard to earn money to minimize their debts, but I’m not sure I’ve met students here with such zeal for self improvement.

These young men were also imbued with the strongest traditions of hospitality. Any food or shelter was shared. In a country where people have so little, what people do have is shared. People would not consider driving past someone stood by the road if they had room in their car. My student friends told me how they hitch hiked across the country, often being given food and money by the people who gave them lifts.

I think extreme events remind people of what they can do. But in such a relatively comfortable country, where much of the need is subtle or hidden we do not so easily the need or know what can be done.

Barclays Bank supported six awards for ‘flood heroes’. Five of the awards went to groups and organisations and the sixth went to a member of the public who stopped and picked up a wet and disheveled flood victim who was walking home along a busy main road in the dark. This person stopped, picked the person up and kept in contact with them, making sure that all of the help possible was made available to them. The actions of this ‘hero’ were quite rightly praised. But should they be viewed as so exceptional?

We learn how much we need our neighbours and local charities when the skies empty for hours on end and threaten our homes, but do we think about them when the sun shines?

Monday, 5 October 2009

Festivals - October 2009

Dent, Silloth, Brampton, Keswick, Ulverston, Windermere, Carlisle, Maryport, Sedbergh, Tarns, Whitehaven …………….. No, I’m not trying to fill this month’s column by using Sir Clement Freud’s infamous technique of spinning out a minute of speaking without hesitation, repetition or deviation by employing a long list of words or places.

But what do these fine Cumbrian locations have in common? They all play host to festivals - musical, culinary and literary. For example, Windermere plays host to the Lake District Summer Music Festival which offers music ranging from popular classics to some of the most challenging and demanding pieces in the classical repertoire.

Tarns, just outside Silloth is home to Solfest, Cumbria’s ‘mini Glastonbury’ where young people from 0 to 90 come together to experience a wonderfully eclectic mix of music. The rejuvenated Carlisle Festival brings the Cathedral Close alive with vibrant music and welcomes in a secular audience that might otherwise pass by Carlisle’s most precious corner.

The other common element, and why they feature in this column, is that these events are conceived, planned, organized and run by local charities led by volunteers. We normally think of charities as being associated with delivering meals on wheels, running play groups and other caring services. But in Cumbria much of our cultural and artistic opportunities are provided through local charities and non profit organisations. Theatre by the Lake, Brewery Arts Centre, Helena Thompson Museum, Dove Cottage, Rosehill Theatre and Blackwell are just some of our permanent locations run by charitable trusts.

Music and art inspire people; at their best they can help us attain new levels of understanding and peace. In Cumbria where audiences and venues for cultural and artistic events may be small the only way to lay things on is in the old fashioned tradition of do it yourself. People with a real passion and interest throw themselves into making things happen – and they do it for free!

The benefits are so wide ranging, from enhancing the experience of our visitors to bringing art and performances to people who wouldn’t otherwise see them. I know that people choose to visit and stay in the county to take part in these events.

My own organisation has played a very small part in funding events such as the Maryport Blues Festival and Solfest. We’ve been able to watch these events grow in popularity and the people behind them grow in stature and confidence. They help build pride in towns and bring a buzz and excitement.

In these credit crunch times how about looking around and seeing what’s on offer in your own backyard and try an autumn ‘staycation’ in Cumbria provided by your very own charities.

Linen league - November 2009

Was a member of your family ever a member of the Linen League in Carlisle? Do you know what the Linen League was? I certainly didn’t until recently.

The Linen League was a band of dedicated women whose role was to raise funds to purchase bedding and nurses uniforms and also to repair the bedding and uniforms at the Cumberland Infirmary in Carlisle. The League’s activities, as far as I understand, ran up until the beginning of the welfare state and the creation of the National Health Service. I’m not sure if other cities and towns had Linen Leagues, but I’m pretty sure they will have done.

We’re about to enter a period of unprecedented austerity in public finances. What this will mean for the National Health Service is not yet known. All political parties have foresworn their commitment to the NHS, but out of necessity huge savings will have to be made.

I’m not suggesting we should go back to the days of the Linen League, but unless you’re closely involved in the life of hospitals and health services you may not know just how many volunteers and local charities already provide direct and indirect support to patients. Organisations such as the Women’s Royal Voluntary Service are still involved in providing coffee bars and book loan services. My own organisation has made grants to the Hospital Radio in Westmorland General Hospital and they have some of the most up to date programming and technology available in the world of radio.

As more and more is known about particular medical conditions the need for information and advice escalates. The internet is a wonderful tool, but having someone who can actually decipher the papers and talk from experience is vital. The range of cancer charities and condition specific support groups, often run by people with direct experience of an illness, are invaluable.

The importance of facilities provided near to home was demonstrated hugely a few years ago when thousands of Cumbrians took to the streets in support of their cottage hospitals. These same hospitals all have ‘leagues of friends’ who still continue the legacy of the Linen League.

These services already exist and are testament to people’s willingness and interest in giving up their time for others. So what can we expect as we go forward? We know how expensive it is to treat people in hospital and how much people normally prefer to be in their own, infection free, homes.

But after 60 years of the NHS how prepared are we to give back and do more? This article is available as blog on www.cumbriafoundation.org. If you have a view and want to continue the discussion please visit it and let me have your thoughts.

Wednesday, 30 September 2009

Cumbrian festivals - September 2009

Dent, Silloth, Brampton, Keswick, Ulverston, Windermere, Carlisle, Maryport, Sedbergh, Tarns, Whitehaven …………….. No, I’m not trying to fill this month’s column by using Sir Clement Freud’s infamous technique of spinning out a minute of speaking without hesitation, repetition or deviation by employing a long list of words or places.

But what do these fine Cumbrian locations have in common? They all play host to festivals - musical, culinary and literary. For example, Windermere plays host to the Lake District Summer Music Festival which offers music ranging from popular classics to some of the most challenging and demanding pieces in the classical repertoire.

Tarns, just outside Silloth is home to Solfest, Cumbria’s ‘mini Glastonbury’ where young people from 0 to 90 come together to experience a wonderfully eclectic mix of music. The rejuvenated Carlisle Festival brings the Cathedral Close alive with vibrant music and welcomes in a secular audience that might otherwise pass by Carlisle’s most precious corner.

The other common element, and why they feature in this column, is that these events are conceived, planned, organized and run by local charities led by volunteers. We normally think of charities as being associated with delivering meals on wheels, running play groups and other caring services. But in Cumbria much of our cultural and artistic opportunities are provided through local charities and non profit organisations. Theatre by the Lake, Brewery Arts Centre, Helena Thompson Museum, Dove Cottage, Rosehill Theatre and Blackwell are just some of our permanent locations run by charitable trusts.

Music and art inspire people; at their best they can help us attain new levels of understanding and peace. In Cumbria where audiences and venues for cultural and artistic events may be small the only way to lay things on is in the old fashioned tradition of do it yourself. People with a real passion and interest throw themselves into making things happen – and they do it for free!

The benefits are so wide ranging, from enhancing the experience of our visitors to bringing art and performances to people who wouldn’t otherwise see them. I know that people choose to visit and stay in the county to take part in these events.

My own organisation has played a very small part in funding events such as the Maryport Blues Festival and Solfest. We’ve been able to watch these events grow in popularity and the people behind them grow in stature and confidence. They help build pride in towns and bring a buzz and excitement.

In these credit crunch times how about looking around and seeing what’s on offer in your own backyard and try an autumn ‘staycation’ in Cumbria provided by your very own charities.

Census of Cumbrian charities - August 2009

How big is the charity world of Cumbria? Up until very recently we struggled to answer these questions. However last month I spoke at the launch of the first ever in depth census undertaken of charities in Cumbria. Using Charity Commission data from 2005/06 the census tells an interesting story.

Income to Cumbrian charities was in excess of £275m. Charities employed 5,500 people and involved 18,500 people as volunteers. These figures are drawn from the records of more than 2,000 registered charities with their home base in the county.

Picking out the employment numbers gives us an idea of how the charity sector compares with others: ‘with a workforce of 5,500 in registered charities in Cumbria this sector is significantly larger than agriculture and forestry (3,299), energy and water (896), mining and quarrying (615) and financial intermediation (2,613)’. It is not always helpful to make these sorts of comparisons, because charities operate across several sectors of the economy; however it still provides a startling benchmark.

The picture is a skewed one, with only 35 organisations receiving 92% of the income. These include the county’s six independent schools, the two hospices, two outdoor education centres and major arts facilities. In contrast 60% of charities have an annual income of under £10,000.

We’ve always known that Cumbria has strong communities. This is born out with evidence that we have 4.1 charities per thousand people, the same figure as for Scotland and the South West of England which top the national table of statistics.

But our charities are not spread evenly across Cumbria. South Lakeland has the largest number with 31% of the charities and 22% of the population. In contrast Barrow is home to 15% of the population and only 5% of the charities. We think this difference relates in part to a strong historical reliance on the shipyard and its associated institutions but also the rural nature of South Lakeland with many small organisations.

Cumbria has a very large number of very small charities compared to the national pattern with more than 60% of the sector having an annual income of £10,000 or less. This certainly matches our geography.

Although the census is the best record we have it still omits information from some of our smallest organisations because the Charity Commission does not require them to return information. Equally some of our larger non profit organisations do not report to the Charity Commission.

The census was compiled by the Cumbria Council for Voluntary Service and will be repeated annually so that we can track changes over time. For a full copy of the census please visit www.thirdsectorcumbria.org.uk/information_information_other_publications.html

Do you want to respond to anything I’ve said, in this or previous articles? If so you can comment at my new blog - http://www.cumbriafoundation.blogspot.com/ I look forward to hearing from you.