Finance and funding are major barriers to innovation in civil society, according to new research which recommends that the government should share good practice in this area to promote investment.
Government-commissioned research published last week by the National Centre for Social Research and Behavioural Insights Team highlighted that at present, charities often viewed investing in innovations as “incompatible with their duties as charitable organisations”.
It added that the Department for Culture, Media and Sport (DCMS) could “actively promote approaches to investing that align with the ethos of charities”, through the likes of impact investing.
The report also recommended that DCMS could partner with “credible messengers”, such as the Charity Commission, in order to highlight the benefits of investment through sharing successful case studies and introducing charities to “a wider range of financing options”.
It noted “significant barriers” to innovation within civil society organisations, stemming from the sector’s narrow focus on traditional funding sources and limited use of investment opportunities.
AI-driven innovations
The research said that many charities have predominantly relied on government grants and fundraising, which limits their capacity to explore more diverse financing options.
Among other key research findings were that finance and funders also remain barriers to innovation in the charity sector, due to their reluctance to embrace the likes of investment.
Researchers suggested that the adoption of advanced technology like AI-driven automation in some areas of civil society could reduce costs and increase productivity.
As formal volunteering levels have decreased in recent years, researchers suggested the use of AI-driven microvolunteering apps as a potential way forward for charities looking to digitise and automate aspects of the volunteering process.
Their report added that “micro-volunteering apps not only streamline processes but also enable organisations to tap into a larger pool of potential volunteers”.
Related articles
