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Big Society 'has led to misleading perceptions of big charities'

Big Society 'has led to misleading perceptions of big charities'
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Big Society 'has led to misleading perceptions of big charities' 3

Governance | Vibeka Mair | 13 Jan 2012

Large charities including NSPCC, RSPCA and the Red Cross have been talking about how to alter public perception that the Big Society is all about big charities guzzling up public sector contracts.

NSPCC’s director of corporate services, Alan Wardle, revealed details about the discussions yesterday at a parliamentary event on the Big Society hosted by think tank ResPublica. He said that a problem with the government’s Big Society agenda was that it was perceived as being about big charities delivering services.

“There is a perception that large charities are guzzling up public sector contracts, against an agenda of cuts,” he said. “But, we receive less than 10 per cent of our income from the state. Discussions have been held by other big charities in a similar position this week.

“Many household-name charities are not dependent on the state. In fact they run services in parallel to the state for free,” he added.

Wardle told civilsociety.co.uk that charities such as NSPCC, British Red Cross and the RSPCA, were in the early stages of thinking about how to start a more nuanced discussion around the Big Society agenda:

"Some large charities do take lots of public contracts and we recognise that - but it's been the dominant narrative," he said. "The conversation has to become more nuanced. Large charities also have great, engaging stories to tell around social action, volunteering and innovation.

"There is early thinking about how we might start these discussions within government departments."

Collaboration needed between big and small

At the event, Phillip Blond, director of ResPublica, who is regarded as one of the architect’s of the government’s Big Society agenda, agreed there was a problem that people saw the 'big versus small' relationship as negative:  

“We need big and small in a healthy world,” he said. “We need to redefine the relationship of prime and subs. It’s dangerous for small players if there are incumbent larger partners, and larger players have more responsibility than the smaller end. 

“Big players were asked to support the smaller players. This created a monopoly form of capitalism, where dominant players squeezed others. We need a new model of capitalism, with joint-venture models.”

The controversial phrase 'Tesco charity' also cropped up at the event, which had speeches on the Big Society from Blond; Bernard Jenkin, chair of the Public Administration Select Committee; Allison Ogden-Newton, chief executive of Social Enterprise London; and Danny Kruger, chief executive of Only Connect.

Jenkin, who had had recently used the 'Tesco charity' phrase in a report on the Big Society, insisted the sector should not view the term ‘perjoratively,’ asserting that Tesco was a “very fine business” and he wished public services were run so well.

He also said the personalisation agenda would create a diverse market for public services.

“That’s why supermarkets work. You are not told what to have. Purchasing power empowers a person.” 

In response, Ogden-Newton said there was a big difference between public service consumers and commercial consumers:

“People go to Tesco because they want to,” she said. “If you go to a public service it’s often not a choice. So intuitively the sector gets offended by the comparison.”

Paul Edwards
Community Development Worker
N/A
16 Jan 2012

“There is a perception that large charities are guzzling up public sector contracts, against an agenda of cuts.” This is because there is a fair amount of truth is the perception. And the "Tesco" comaprison is not bad either. Tesco moves in on small towns and sucks the life out of High Streets because small traders cannot compete. Similarly small charities cannot compete against the muscle and professionalism of the big ones. On the other side of the equation, commissioners of services, such as local authorities, prefer to do business with the big guys because its easier. One contact, one negotiation, one contract, one payment.

Its also worth remembering that small voluntary organisations usually arise in circumstances of market failure where no-one else, either government or business, is prepared, themselves, to provide a needed service. This is the traditional niche of the small charity. The cuts to local authorities has created a market where no effective market existed and the big players, private or voluntary, can now see opportunities, pushing the small charities out of the way in the process and leaving them with unlucrative second-level contracts, at best, or facing closure because the the funding has moved up the feeding hierarchy.

Barbara
13 Jan 2012

Notion that small charities can do nationals' work is ridiculous. How? On local level one hears all the time that if not for the 'big boys' there would be plenty of cash for local groups - how is that possible, I'm asking? So we hate big boys because we envy them and secretly dream at night to be in their position? Hypocrisy, as always. Civil society exists whether state-funded or not and whether we like it or not - look at Arab spring: somehow they managed without state funding!

Stephen Lulsley
Independent Commentator and Consultant
13 Jan 2012

Isn't that exactly what it is about?

It seems to me that the BIg Society is about government abdicating responsibility, making cuts and getting other organisations to do its work for less or better still for nothing.

I for one want to live in a society where not only individuals choose, because of their own inate compassion and concern to serve others, but where our government and its agencies take full responsibility for those whom it is elected to serve.

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