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

RNIB chief executive criticises ‘arrogance’ of MPs who think charities must learn from private sector

21 Nov 2014

Lesley-Anne Alexander, chief executive of RNIB, yesterday said she had a “struggle with the arrogance”...

Property boom poses risk to charities' long-term survival, survey reports

20 Nov 2014

Nearly half of charities consider property the greatest risk to their long-term survival, according to...

A quarter of charities 'ignore Commission action plans'

19 Nov 2014

Around one in four charities that the Charity Commission issued action plans to last year either partially...

Band Aid 30 raised £1m in first day

19 Nov 2014

Band Aid 30 became the fastest-selling single of 2014 when it was released yesterday, with 206,000 people...

Society lotteries deregulation could lead to less trust in charities, says NCVO

19 Nov 2014

Deregulation of society lotteries could impact public trust and confidence in charities, NCVO has told...

UK is joint-seventh overall in World Giving Index of 135 nations

18 Nov 2014

The UK and Ireland are the fourth most generous nations in terms of giving money to charity, the latest...

OSCR launches new website

20 Nov 2014

The Office of the Scottish Charity Regulator has launched a new website which includes a new search function.

Data from controversial Samaritans app to be deleted

17 Nov 2014

Samaritans has promised that all data collected by its Twitter monitoring app will be deleted and the...

Post Office enables Children in Need donations through Twitter

11 Nov 2014

The Post Office has become the first UK organisation to allow Twitter users to donate to charity through...

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 <<