The voluntary sector must move from a grants mentality to a contract mentality, the new chief executive of the Charity Commission said this morning.

Sam Younger (pictured) was giving his maiden speech as head of the sector’s regulator to an audience of charity finance directors and chief executives at Charity Finance Live in London.

He said the sector faced tough times ahead. Wednesday’s spending review would have a “significant impact” on the charity landscape and on the Commission itself. It plans to begin a consultation with the sector later this week on what a slimmed down Commission should look like, and what services it should provide.

Younger added that the sector should be encouraged by the sentiment emanating from government that the “affairs of charities are climbing the political agenda”. But in order to make the most of this opportunity, the sector must, “move from a grant mentality – the expectation that they will be supported because their heart is in the right place – to a contract mentality. To an understanding that you are going to need to bid for support for certain projects, services, or activities in return for demonstrable public benefit.”

In questions afterwards Younger defended the rights of charities to use controversial methods of fundraising such as chugging: “People are not forced to give and actually the evidence is that charities wouldn’t continue to invest in it if they didn’t get a result.”

But he added, “You do have to be careful. Public confidence takes a long time to build up and can disappear pretty quickly.”