Share

Groundwork Derbyshire & Derby to close down

Groundwork Derbyshire & Derby to close down
News

Groundwork Derbyshire & Derby to close down 1

Governance | Vibeka Mair | 26 Sep 2012

Groundwork Derbyshire and Derby has gone into administration after struggling to cope with payment-by-results funding.

It is the second Groundwork charity to close this year. In March, Groundwork South West entered administration, blaming cashflow difficulties. Groundwork Merseyside also closed in late 2011.

Sir Tony Hawkhead, Groundwork's national chief executive, told civilsociety.co.uk that there was heavy pressure on charities trying to survive in a payment-by-results world:

"The days of upfront grant funding are gone," he said. "Payment-by-results contracts bring very heavy pressure on cashflows and require charities to be stronger with their balance sheets."

Groundwork Derbyshire and Derby, which ran for 24 years, will make 20 of its 33 staff redundant. Thirteen staff will remain employed to continue delivering contract commitments and to support the administrators as the future of the organisation is resolved.

Sir Tony said Groundwork was working hard to ensure that most of Groundwork Derbyshire and Derby's operations continued.

"There is a huge amount of effort," he said. "Around 90 per cent of staff who lost roles with Groundwork South West were re-employed by the prime contractor on its Work Programme contract or by other Groundwork charities."

There are around 30 independent Groundwork charities across the UK.  Sir Tony says he expects some to consolidate in the current climate.

Alistair Heron
26 Sep 2012

"Payment-by-results contracts bring very heavy pressure on cashflows and require charities to be stronger with their balance sheets."

Put blunty this means having cash in the bank. It's a not-so-sweet irony that funders (including statutory agencies) have for years tended to steer away from charities with robust reserves. I've always found this perverse is it means money goes to those that organisations that 'need' it (for the purposes of self perpetuation), rather those that can make a genuine and measurable difference with it.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Ring-fencing public service contracts for charities is a bad idea, NPC tells Labour

16 Sep 2014

NPC has warned that introducing charity-only contracts is the “wrong approach to take”, in its response...

Man jailed for stealing £300,000 of donations meant for Help for Heroes

16 Sep 2014

A man has been jailed for four and a half years for stealing £300,000 donated by the public who believed...

Guide Dogs grows income but posts sixth successive deficit

15 Sep 2014

Guide Dogs increased its fundraising income by 8 per cent to £71.4m last year, but spent more than £31.2m...

Teenage Cancer Trust reveals £5m Stephen Sutton legacy

16 Sep 2014

Teenage Cancer Trust has announced it intends to spend the £5m raised by Stephen Sutton to fund new specialist...

Man jailed for stealing £300,000 of donations meant for Help for Heroes

16 Sep 2014

A man has been jailed for four and a half years for stealing £300,000 donated by the public who believed...

More charities are securing corporate partnerships totalling £10m a year

16 Sep 2014

Partnerships between companies and charities are increasingly longer-term, higher-value and more strategic,...

JustGiving page for Manchester Dogs’ Home receives four donations a second

15 Sep 2014

JustGiving has said that donations going to an appeal for the Manchester Dogs’ Home following an arson...

Commission's new online charity search to launch soon after delay

15 Sep 2014

The Charity Commission’s searchable online register of charities is due to launch in beta this autumn,...

Charities warned that digital campaigns can be 'counterproductive'

9 Sep 2014

Charity digital campaigns can be counterproductive and will need to change to keep the attention of those...

Join the discussion

Twitter
 
Training

Attending our one day courses is a highly effective way of ensuring new and existing trustees fully understand their role, responsibilities and liabilities.

>> Find out more <<