Charities are failing the public because they are focusing too much on winning public contracts rather than influencing how services are provided, according to a report published today by think tank NPC.
In the first in a series of ‘NPC provokes…’ papers in the run-up to the general election, Fiona Sheil, who until recently was a policy and development manager for the think tank, argues that the sector “isn’t living up to its potential”.
“The charity sector, with its flexibility, ideas, wealth of social assets and expertise, should be setting the principles and creating the systemic practices for the future," Sheil says.
"Somehow though, these frequent pockets of excellent practice aren’t managing to influence the overall picture as much as they should.”
She blames charities for “following the money” rather than focusing on principles.
She says with government funding making up one third of the sector’s income, charities have allowed commissioners to have “undue influence on the way in which the charity sector deploys its resources and the independence of its voice”.
To have greater impact the sector needs to be working “higher up” the system where budgets are set, she says. She cites Macmillan Cancer Care as an example of a charity doing this well by trialling new systems and providing evidence.
“If the system is well structured, and its principles and evidential basis sound, it matters less who delivers the actual service to people,” Sheil says."Perhaps here is where the sector needs to redouble its efforts for reform, even if it means moving away from provider roles."
Leaders lack key skills
Sheil identifies a lack of skills in areas such as collaboration, risk management, negotiation, influencing and strategies among the sector’s leadership.
She pointed to the fact that these skills were not needed during the years of growth that preceded recession.
“These good years, followed by sudden budget cuts now being made, have created a perfect storm – bringing out all the sector’s shortcomings," she says.
“Rather than having the confidence and clarity to stay focused on achieving social impact, charities are making rushed decisions, building ill-fated relationships and failing to have the evidence and strategy they need.”
