Thursday 23 February 2012

2. National & local drivers of change in infrastructure..?

National drivers of change
Local drivers of change

The relationship internationally has changed between national governments and their non-profit sectors: cuts, social finance, a decline in trust in charities, mergers, advocacy. There’s a real sense of change internationally (well summarised by NCVO’s head of research here).

Earlier this year, Big Lottery published an independent review of capacity building by Professor Diana Leat, ‘New Tools for a New World’. This research highlighted the need to rethink approaches to capacity building, and highlighted the importance of supporting voluntary organisations to withstand difficult conditions and working with what is available – re-using and recombining skills and resources.

In 2008 26% of charities and social enterprises reported as being ‘satisfied’ or ‘very satisfied’ with their infrastructure services conversely only 8% were dissatisfied, but 37% said the question was not applicable.

The average age of trustees is 57 (charity commission), and there is evidence to show diminishing participation of younger people in the same way, coupled with a shortage of trustees.

Office of civil society has released two consultations  the direction of which is unlikely to change under any future administration, both settling a very clear role for infrastructure.

Big Lottery Fund have released Building Capabilities for Impact and Legacy which investigates how infrastructure can be provided in alternative ways (some suspect the aim is to provide support via phone lines and websites).

The National Audit Office judged the previous infrastructure programme Capacity Builders “not good value for money”.

Big Lottery Fund are being asked to reduce overheads to 10%. This is very different language from ‘full cost recovery’.

NCVO almanac 2011 - 8% of the adult population accounting for almost half of all volunteer hours. This is clearly unsustainable as this population ages.
Pathways through participation – a 5 year longitudinal study that shows volunteering & social action has been static for 10 years.

A market for infrastructure being created  which will give more power to frontline organisations to buy their infrastructure services. This will change the relationship between frontline organisations and infrastructure. It will make VCOs customers rather than members. 

What would personalisation of infrastructure services mean? They will also be free to commission any organisation to deliver infrastructure services increasing competition and the need for direct results rather than advice. Even where funding comes externally infrastructure will increasingly be asked to be responsible for delivering outcomes rather than simply advising others to act.

Organising without organisations (video by Clay Shirky) as a concept will reduce the need for intermediary bodies. A similar process may follow for direct democracy and direct representation by the costs of communicating over last geographies and collection of disparate people fall. A good example locally, the Spartacus report led by disabled campaigners, was a massive challenge to existing disable peoples’ infrastructure.

The business models used for our currently funded projects are largely unsustainable in exactly their current form (funding advice, community accounting & employment advice services). The open market will drive costs below our full cost recovery rates, however the services are well used and valued so there is significant opportunity to generate income through this.

Income will come from unusual sources: local procurement, social impact bonds, payment by results that all have an outcomes focus. Infrastructure will be responsible for positive social outcomes, not just the outputs of training or advice.

Statutory partners are looking for an increase in activity without additional funds through transition funds or innovation funds.  This will increase pressure on groups to be efficient & effective.

The cult of free. Work is changing, and many of our current roles will be automated or redundant, while new needs will emerge.

Accountability to members is likely change, not just as more social enterprises join CVSs, but also as resources become more scarce. People may start to question the how existing assets are used (eg lottery funded conference centres)



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