Network Spring 2011

DonationsfromaDragon

Also in this issue:ImprovingNHSandThirdSectorRelationsEmployeeEngagement isEssentialClosingDownYourOrganisation

Supporting and Developing, Connecting and Representing

Spring 2011

Investor James Caan onwhatmakes him give to charities.

Plus finance articles fromCCLA, RBS and the SIB.

ASSOCIATION OF CHIEF EXECUTIVES OF VOLUNTARY ORGANISATIONS

www.acevo.org.uk/login [email protected] 020 7280 4960

I have been amazed at ACEVO’s level of access and influence in creatingconstructive dialogue and developmentwith a wide range of decision makers.

“”Rob Owen, CEO

St Giles Trust

Why I’m an ACEVO member...

Your ACEVO membership can connect you with policy-makers and key decision-makers in government. Read our weekly Leader to Leader enewsletters delivered toyour inbox and visit the ACEVO website for regular updates.

Contents Spring2011

ACEVO network spring 2011 3

32DragonDonationsFind out what makesJames Caan invest incharities.

35 Loan FinancingLoan applicationmistakes can cost. SuePeters from The SocialInvestment Businessgives tips for success.

36Charity InvestmentsJohn Kelly from CCLAon how investmentscould be affected bythe economy.

37 CashManagementWhat’s your role in yourorganisation’s moneymanagement? HughBiddellhassomepointers.

In Depth

14 Prove yourWorthMatilda Macduff onACEVO and NPC’snew performancemeasurementframework.

38 EngagingEmployeesEmployee engagementis more important thanever claims Nita Clarke.

Cover Stories In brief4 Trustee’sWelcome

6News

10 ACEVOMembers’ News

13Me andMyChairCEO Crispin Truman on whatmakehis relationship strong with ChairLoyd Grossman.

17 Leadership TeamRIP?David Fielding offers advice onrestructuring your leadership team.

18Member Tried& TestedACEVO Consulting, WorkLife Supportand Special Interest Groups.

19BetterMonitoring&EvaluationLiam Cranley on what is required toeffectively evaluate your organisation.

20 TheNHS and Third SectorAlison Ryan on how third sector leaderscan improve relations with the NHS.

21Big Society AdventureVolunteering England’s SukhvinderKaur-Stubbs says adventure is neededfor Big Society to succeed.

22 Confessions of a CEOJulie Bentley, CEO, FPA under theConfessions spotlight.

24Big Decisions in Big SocietyWhat risks are attached to yourorganisational decisions? Zurich’sPaul Emery highlights the importanceof risk assessments.

25Drawing on all Resources?Erin McFeely, ACEVO’s Head ofRegional Development introducesACEVO and ippr north’s jointfree publication.

27How to Thrive as anNGO in ChinaWhat are the challenges of beingan NGO in an emerging economy?Clare Pearson from DLA PiperLLP explains.

28 Collaboration for Social EnterprisesConsultant Jon Huggett on thesimilarities between social enterprisecollaboration and Jazz.

29 Closing Down your OrganisationAn issuemany third sector CEOs arefacing. Read Davina Goodchild’s threekey tips.

31 Community OutsourcingAn interesting businessmodel thatmany charities could benefit fromsays Ian Agnew.

40 Ready for the Pension Reform?Foster Denovo’s Ian Bird on what youneed to know.

41 Closing the Perception GapJames Huckle on ensuring the publicunderstands the charity sector.

42 TimeOut

2232

13

21

10

TheChallengeofFundingTrustee’s Welcome4 ACEVO network spring 2011

There is not one CEO inthe sector that doesnot appreciate the

scale of the fundingchallenges we face. Withcontract fundingat a local and national levelbeing reduced and privateincomes under pressurefrom pay freezes, risingcosts and redundancy it doesnot matter how your charityis funded – future incomestreams are more uncertainthan they ever have been.

The Chief Executive’sleadership and decisionmaking skills will be put tothe test more than ever.

Third sector CEOs are anoptimistic bunch – I think itmust be an essentialcompetence for the role. Ihave found it interestingwhen chatting to peers in thesector to hear about how theyare responding to thechallenges we face. Muchtime is being spent reviewingand reflecting on priorities. Itis especially important thatduring this period we allensure we are not distractedby anything that does notcontribute to these and weonly spend our funders’money in those areas thatwill make the biggestdifference to the lives ofthose we support. HughBiddell’s article on page 37provides advice on managingyour organisation’s moneyeffectively by setting

priorities and understandingyour cash drivers.

It is also evident thatmanyCEOs are spendingmore timethan usual communicatingpriorities internally to ensureeveryone is working together.At times like this it is easy foreach department to retrenchand focus on their ownwork,I see it as a critical part ofmyrole to ensure everyone isworking together and sharingasmuch as possible.

Themonitoring of funding bidsin the pipeline, and cash flowforecasting, has taken on anadded importance for obviousreasons. I find that this alongwith themonitoring of our‘efficiency tracker’ which setsout the actions and futureimpacts of our cost reductionmeasures provides valuablereassurance to our Board ata timewhen tensions betweenthe board and executive canstart to emerge. This isevidenced by the increase incalls to ACEVO’s CEO in Crisishelpline during recentmonths.

It hasbeenencouraging toseeanevengreaterwillingnessamongstCEOs toexploreways inwhichwecancollaborate.Whilstit is clear fundersarekeen toencourage this for servicedelivery, it hasalsobeenusefultobringseniormanagementteams together fromotherorganisations toshare ideasaround thesolutions tocommonproblems.

Having seen a reduction in‘traditional’ funding streamsit is important to recognisethat new sources continue toemerge. Sue Peters from theSocial Investment Businessgives some timely advice onwhat makes a successfulloan application (page 35).Understanding these newsources of funding andconsidering theirappropriateness to the workof the organisation could helpprovide a more robustfunding platform for thefuture.

And for those lucky charitieswith reserves to invest thereis the added challenge ofinflation proofing them! Onpage 36, John Kelly sets outhis thoughts on what hethinks the current economicclimate could mean for thirdsector organisations withinvestments.

So all-in-all a challengingtime, but one where thereare new opportunitiesemerging and an evenstronger network of peersupport seems to beemerging. Let’s keep talkingto each other!

Mark Lever is ChiefExecutive of The NationalAutistic Society and anACEVO trustee.Contact Mark via [email protected] connect with him onLinkedIn.

Third sectorCEOs are anoptimistic bunch– I think it mustbe an essentialcompetencefor the role.

Editor’s Intro6 ACEVO network spring 2011

News Spring2011

Results. Return on investment. Performancemeasurement. Metrics. Buzzwords yes, butessential if we are to prove the value of our workand that of our organisations. Once the preserveof the private sector, now everyone that funds ordonates wants to knowwhat results to expect;what the outcomes will be; howmuch of a returnwe will make or how performance will bemeasured. All of this while supporting ourbeneficiaries: themain reasonmany of us decidedto work in the sector. It certainly is tough! Thisquarter’s network has three articles that discussthe issue of results andmetrics in different ways.ACEVO has begun working with charity consultancyNPC on creating a framework that will help ACEVOand other infrastructure organisationsmeasureimpact. Matilda Macduff talks through the processso far on page 14. Many of you will be aware thatthe ImpACT Coalition is hosted at ACEVO. On page19, Liam Cranley, Head of ImpACT reinforces thesignificance of performancemeasurement whilstensuring that the right metric is beingmeasured.James Caan, BBC Dragon, entrepreneur andmajordonor talks about the results he hopes to achievewhen he donates to charity on page 32.

Also in this issue of network, we find out whatwould it be like for a leader tomake the toughdecision of putting up the ‘Closed’ sign. We askedCEO, Davina Goodchild to tell us her story. On page29, she highlights three areas that other leadersin similar situations should consider.

Back to the issue of performancemeasurement.How does network perform as amember benefit?Complete the readership survey and tell uswww.acevo.org.uk/readersurvey

Agnes Jumah, Editor

Once the preserveof the privatesector, noweveryone thatfunds or donateswants to knowwhat results toexpect; what theoutcomeswill be;howmuch of areturnwewillmake…

MetricsMania Finance andFunding IssueThere are four features in this issueof network that focus on financeand funding. Share this issue ofnetwork with your finance directorand all those involved in finance inyour organisation.

Congratulations toHonoured MembersA CBE was awarded to Janet Vitmayerof Horniman Museum and Gardens,and Margaret Humphreys founderof the Child Migrants Trust. GeraldOppenheim former director of theBig Lottery Fund and Steve Wylerof the Development Trust Associationwere honoured with an OBE. MarkLaw of Barca-Leeds receivedan MBE, along with ElizabethLisgo of Age Concern Somerset,Martin Kinsella of P3, and GrahamePickering of the Great North AirAmbulance Service. ACEVOCEO Stephen Bubb was alsoknighted.

Find a servicetomatch your needsACEVOhas relationshipswith a number of corporate partners,who provide quality services andsupplies tomembers. If you’re in needof a recruitment consultant, solicitoror companies that can reduce yourutility bills or office rent visit theACEVOCorporate Directory.

Go towww.acevo.org.uk/corporatedirectory

In Brief

Editorial team:MattBoyle, EleanorDoherty,KatherineHudson,AgnesJumahandNatalieLaw.

ACEVO is theAssociationofChiefExecutivesofVoluntaryOrganisations.Weconnect, developrepresentandsupport the thirdsector's leaders.Wehavenearly 2000membersandhavebeenprovidingsupport andadvice toourmembers forover20years. To findoutmoreaboutbecomingamember, pleasecontactuson02072804960or visitwww.acevo.org.uk/membershipnetwork isaquarterlypublication for chief executives, seniormanagementandall those interested inleadership in the thirdsector. It is availableonacontrolledbasis tomembersofACEVOand isavailabletoother readersonsubscription.networkacceptsnoresponsibility for the lossordamage,howevercaused, toanymaterial submitted forpublication.Editorial opinionsexpressed in themagazinearenotnecessarily thoseofACEVO.Nopart of thispublicationmaybereproduced inany formwithout theprior consentofACEVO.SubscriptionUK:1 year -£40


Launch of theLeadershipSurvey

Baker Tilly, one of theUK'sleading providers of accountingandbusiness services andACEVO launched theLeadership Survey 2011 inMarch. The survey askedrespondents about differentareas including third sectorfunding, boardmemberskills, strategic planningandperformancemeasurement. Baker Tilly andACEVOwill also behosting freeseminars across theUK inJune to disseminate the surveyresults. Register your interestin attending and find outmoreabout the survey via theACEVOwebsitewww.acevo.org.uk/leadershipsurvey2011

For further information ongovernance resources suchas consultancy or theACEVOGovernanceReviewService,contact Orli GorenskiHeadofBusinessDevelopment [email protected]/governanceto see our publications thatprovide governance supportsuch as YourChair andBoard.

CommissiononBig SocietyUpdateLaunched at the end of lastyear, ACEVO’s CommissiononBig Society held its firstmeeting in early January.

Chaired by Lib Dempeer LordRennard, the Commission isputting together a civil societyresponse to Big Society. TheCommissionmembers havebeen looking atwhat theconceptmeans to civil societygroups. They’ve also sought topull the debate onto amorepractical ground, thinkingaboutwhatmeasures couldhelp build a bigger society,aswell aswhat continues toblock it. Meetingswillcontinue over the comingmonths, with a report duesoon.

Mergers,Partnerships&CollaborationsThe July issue of networkwillfeature articles onmergers,partnershipsandcollaborations.If youwould like to contributean article contact AgnesJumah, Head ofMarketing [email protected] details of what youwouldlike to cover. If youwould liketo access advice or support onmergers, visit the ACEVOwebsitewww.acevo.org.uk/partnershipsHere youwill find informationonmany free and discountedACEVO resources includingthe publication AGuide toMergers forThirdSectorCEOs.

Pay Survey2011/12 –Respondentsreceive afree copyThe ACEVO Pay Survey isthe largest of its kindfocusing on third sector CEOand senior manager salaries.Last year nearly 1,000CEOs and chairs participatedhelping us build a broadpicture of seniormanagementteam remuneration in thethird sector. The moremembers that take part themore comprehensive thereport. This year thereport will produced inpartnership with Attenti.There will be fewerquestions in the hope thatmoremembers can take part.

All respondents thatcomplete the questionnairewill receive a free electroniccopy of the report. Visit theACEVOwebsite inMay andcomplete the survey toreceive your free copy–www.acevo.org.uk/paysurvey

For hard copies of thequestionnaire or formoreinformation please contactMatt Boyle on 020 7280 4970.Read fromPay Surveysponsor Attenti’s DirectorDavid Fielding on page 17.

VoluntarySector CutsWebsiteA joint initiativewith anumber of organisations,the Voluntary Sector Cutswebsitemaps voluntarygroups experiencingreductions in public sectorfunding, and allows the thirdsector to collaborate andshare their knowledge ofimpending cuts.

If you’re involved in avoluntary or communitygroupwhich has been toldits statutory fundingwill bereduced, you can be part ofthiswork by sharing yourstory. Add your knowledgeof cuts to the site -www.voluntarysectorcuts.org.uk

Need a consultant to help manage strategic change in yourorganisation? Read about ACEVO Consulting on page 18.

NewDeputyEventsManagerSamanthaBlack is ACEVO’snewDeputy EventsManager.Having recently completed anEventsManagement Diploma,Samantha joins ACEVO fromBusiness Linkwhere sheworkedwithin the publicsector to provide businesssupport to London’s SMEs.Samantha has also spent timeworking as a volunteer in thecriminal justice system in theUK, America and Thailand.

Social networker?JoinACEVOmemberson

LinkedInand followusonTwitter.Seepage42

Want freeresources that can

helpyourorganisationsurvive thecuts?Visitwww.cutswatch.org.uk

News Spring2011

8 ACEVO network spring 2011

Dates foryourdiary03June–ACEVOFutureLeadersSummitHowgood is yourseniormanagement teamatcommunicatingwith you?OurFutureLeadersSummitwill providepractical support for futureleadersandseniormanagershelping themtodevelopcommunicationskills importantatdirector level.

This conference for thirdsectordirectorswill cover:

· Upwardmanagement–Howtopositivelyinfluenceyourmanager· Communicationskills–Successfulcommunicationwith the

CEO, theboardandothers in theseniormanagement team· Influencingskills–Positively influencingpotentialemployees· Networkingskills–Developingnetworkingskillsandmaking

themostofnetworkingopportunities

Speakers includeJohnLow,ChiefExecutive,CharitiesAidFoundation;MilesTempleman,DirectorGeneral, IoD;DavidFieldingMBE,Director,Attenti; IraKoretsky, TheChiefStoryteller.Booknowatwww.acevofutureleaders.org.ukand followusonTwitter#flsummit.

13-14June-ThirdSectorDigitalCommunicationsandSocialMediaConvention

AreyouadigitalCEO?Yourorganisationalstrategyneeds to includehowtoget themostoutof efficientdigital resourcesandcommunications. This twodayconferencewillbring together50engagingand inspiring

speakers likeChannel4’s JonSnowandbest-sellingco-authorof‘TheNetworkedNonProfit’, AllisonFine. Theconventionwill coverinnovation, developments, bestpracticeandstrategy indigitalcommunicationsandsocialmedia.Over300delegatesareexpectedwithachoiceof 40presentationandhowtoworkshops. Visitwww.thirdsectorsocialmedia.com ACEVOmembers receivea£50discount.Addpromocode ‘ACEVO50’whenbooking.

Read about ACEVO’s latest free publicationDrawing on all Resources on page 25.

ACEVO Board ElectionsInourJanuaryelections,ACEVOwelcomedbackfourpreviousdirectors,andonenewadditionto theBoard.WelcomedbackwereCliffAllumofSkillshare International,TomFloodofBTCV,DianaKingdonofGreenoakHousingAssociationandPriscillaNkwentiofBlackHealthAgency.MarkLeverof theNationalAutisticSociety isournewadditionto theBoard.

MarkLever isCEOof theNationalAutisticSociety (NAS),acharitywhichchampionstherightsofpeopleaffectedbyautism,theirparentsandcarers. Itprovidesarangeof information,adviceandadvocacyservicesandsupport includingresidentialservicesandsixautismschools.AqualifiedcharteredaccountantandMBAgraduateofCranfield,Mark joinedNASafter thirteenyearswithWRVS,risingfromDirectorofTrainingtoCEOin2002.MarkhasbeenamemberofACEVOforsixyears.For furtherinformationaboutourboard,visit theACEVOwebsitewww.acevo.org.uk/acevoboard ReadMark’sTrustee’sWelcomeonpage4.

15June–LearningwithLeaders–RobertPeston,BBCBusinessCorrespondent

Fancy lunch and a talk with themostknowledgeable businesscorrespondent in the country?ACEVO’s Learning with LeadersSeries will give you the opportunity tomeetRobert anddiscuss the changing

business environment. Book now at www.acevo.org.uk/lwl

23June–ACEVOCEOSummit

If you’re a third sector leader and you can only attend one eventthis year, make sure it’s the ACEVO CEO Summit. Hear from:

· RichardHawkes, CEO, Scope· Emma-Jane Cross, CEO, Beatbullying· HennyBraund, CEO, AnthonyNolan· CiaranDevane, CEO,Macmillan· John Cridland, Director General, CBI· Nita Clarke, Director, IPA· RodWilkes, CEO, CIM

Speakers will be covering key topics that third sector leaderswill need to focus on in the comingmonths such as crosssector partnerships;managing strategic change; employeeengagement; innovation andmarketing. There will also beopportunities throughout the day tomeet and network withother leaders in the sector. Visit www.ceosummit.org.uk formore information and follow us on Twitter #ceosummit.

Robert PestonJohn Low

Jon Snow Henny Braund Ciaran Devane RodWilkes


NewMembersHere are some of our newestmembers. To find thedetails any of these newmembers, go to theMembershiparea of thewebsite and log in. In the left-hand navigation,click Contact aMember to find amember.

Steve Scown - Dimensions

Nuhu Salihu - Village Aid

Gary Hardman - St Anne's Community Services

BenClacy - ITSMFUK

LucyNickson - Helen's Trust

CharlotteWeinberg - Safe Ground

Solo - AgeUKLeeds

GaryMillner - pfeg (Personal Finance Education Group)

Peter Corbett - ThomasPocklington Trust

Colin Norman - EPPCIC

MichelleMcIntosh Little - Head For Business

David Pastor - Claire House Children's Hospice

Paul Parker - Religious Society of Friends

Sally Shire - Consortium for Street Children

Neil Leitch - Pre-school Learning Alliance

Peter Sandiford - After Adoption

Jon Siddall - Landaid Charitable Trust

Amanda Foister - Longridge

KarenWeaver - Harrogate&Areas CVS

Heather Sim - The City Of LondonMigraine Clinic

Ann Stacey - Skills For Care

RakeshGarala - Skills For Care

NewACEVOPublicationsACEVOhas launched anumber of new and freepublications over thelast fewmonths. Twoare highlighted below.

Formore publicationsand free downloads visitthe ACEVOwebsitewww.acevo.org.uk/publications.

Pushing atOpenDoors

There has never been a bettertime to find ways in which toincrease collaborationbetween the voluntary, privateand public sectors. Bydeveloping cross sectorrelationships, the voluntarysector canmake its voiceheardmore effectively.

Launched at the ACEVOPhilanthropy Conference, this‘how-to’ guide offers adviceon how to successfully ‘opendoors’ with leaders in thepublic and private sectors.‘Pushing at Open Doors’ looksat the role of cross sectorlearning relationships in

developing thisunderstanding, andexamines successful casestudies involving a rangeof approaches includingmentoring, pro bono projectsupport and trusteeships.Download your free copy atwww.acevo.org.uk/publicationsor call 020 7280 4960.

If you would likemore infoor have suggestions onwhat our future publicationsshould cover pleasecontact the ACEVOmembership team [email protected]

ACEVOPensionsSurvey 2010/11

The ACEVO Pensions Surveyhas beenwritten to help thirdsector organisationsunderstand the upcomingchanges in legislation.Included in the report is aguide to the 2012 PensionReformwith useful andpractical tips on how to startpreparing your organisationnow.

Readmore about the resultsof the survey on page 40.

Want to improve your income? Then engageyour employees. Read page 38.

On the Box

Quite a fewACEVOmembersmade appearances on TVchampioning their causes…DonShenker fromAlcoholConcern…Srabani Sen fromContact a Family and ACEVOboardmember…RobOwen fromSt Giles Trust.

ACEVO Members’ News10 ACEVO network spring 2011

NorcareAdaptsServicesNorcare isa leadinghousingandsupportorganisationcommittedtoprovidingholisticsupport tovulnerablegroups in thenorth-east,withservicesrangingfromdebtsupport tocounsellingandmedicaladvice.HeadedbyCEOSusanBickerton(anACEVOmemberfor fiveyears)since2007,Norcarehasbuiltareputationforhelpingthosetrappedbyaddiction,domesticviolenceormental illnessbothphysicallyandmentally.Norcare iswellknownforprovidingpersonalised, individualcarethatgoesbeyondbasichousingneeds.

RecentlyNorcareteamedupwithFuturebuildersandtheBritishLegiontoprovideahousingcentre forveterans, the firstof itskindin thenorth-east.Thecentre isarenovatedfour-storeyVictorianhousewhichhashelpedhundredsofveteransbyprovidingaccommodationandensuringtheirwellbeinguponleaving.Thecentreassistsveteransbyprovidingemploymentadvice, financialmanagementandcareerguidanceforpeoplewhohavehadtorapidlyadjust tocompletelydifferent lives.TheVeteranCentre

drewwidespreadacclaimfromthemedia forhighlightingacausethathadlittlerepresentation,andwithan increasingnumberofveteransreturningto theUKandunemploymentatanall-timehighacrossthecountry, is likely tobecomeincreasingly importantin thefuture.

2011hasalreadybeenabusyyear forNorcare: inJanuaryNorcarelaunched its leadershipmanagementprogrammetodeveloptheroleofmanagersacrosstheorganisation,and inFebruary,Norcarelaunched itsActiveClientEmploymentprogramme,offeringNorcareclients training in thehousingandsupportsector inordertopromotefull timeemployment.Norcare iscurrentlyoperatinganumberofsupportgroupsfornon-residents,givingfurtherindividualisedcaretogroupsof6-8beneficiarieswhowill receivethesameservicesasresidents.Norcarehopetosetupotherveterans’centres in thenortheast.SusanBickertonsaid:“Thethirdsector isfacingchallengingtimes.Thismakes itall themore important thatwehoneourservices toperfectlymatchtheneedsofourclients.TheNorcareVeterans’Centre isaperfectexampleof this.”

Theorganisationsof25ACEVOmemberswonaplace inTheTimes list of 100BestPlaces toWork.FoundationandCommunityLinks, bothLeeds-basedcharitiescame10thand38th respectively inthe league tablebasedonstaffsurveys.Foundationhelps thosewithdrugandalcoholproblemsand thehomeless. ItsCEO’s ‘soundmoralprinciples’ extend internally

(according to85%of thestaff).Oneof thestaff benefits thatcontributed toCommunityLinks’highscore isa£300bonus forcompletingayear-longqualification.At 27wasNorcare,whichprovideshomes for vulnerablepeoplesuchas thosewithdrugormentalhealthproblems.Working toresolvedrugandmentalhealth issuesmaynotbeeverybody’s‘dreamjob’, but 64%ofNorcare’semployeesbelieve it is.Inatnumber62 isCyreniansCymru,whohelp vulnerable,disadvantagedandhomelesspeople.ACEVOmemberRobOwenruns thehighest rankingorganisation:StGilesTrust,which reachedavery impressivenumber4!85%ofstaff believe theorganisation is ‘drivenbymore thanprofit’, andare‘excitedaboutwhere it isgoing’. ForallACEVOmembersand theirorganisations thatappeared in theTimes list see the tableon theright.Congratulations toallmembers!

Members run ’Best Places to Work’

25 ACEVO members’ organisations have beenplaced in The Times list of 100 best placesto work in the Public and Charity Sector...

Rob Owen, St Giles trust

RobOwen StGilesTrust 4EmmaSaysell StDavid’sFoundationHospice 9SteveWoodford TheFoundation 10NickiYouern YOU 12JimGardner KentUnion 19ChristineAllen ForumHousingAssociation 21SusanBickerton Norcare 27BrettWigdortz TeachFirst 32TegrynJones KeepWalesTidy 34JonWoolmore CommunityLinks 38SimonMorris JewishCare 42CarolineWard MaydayTrust 43JamesCatford BibleSociety 47MarkMolden Carefor theFamily 48ConradWatkins CyreniansCymru 62NicholasYoung BritishRedCross 64RobertJones SussexOakleaf 68AlmaCaldwell AgeUKNorthTyneside 71BobReitemeier TheChildren'sSociety 73RobNoble TheLeadershipTrustFoundation 77DavidBull UNICEFUK 81MarkGoldring Mencap 85StuartRigg AdvanceHousing&Support 91DebbieBrannigan Swanswell 93JanBarlow TheFireFightersCharity 99


ActionforChildrenLetDonorsMakeDecisions

Launched in February, MyAction for Children is the newdonating system from Actionfor Children. What makesthis new system different isits ability to allow the donorto decide how their money isspent in three quick and easysteps: Choose where, Choosehow and See how.

Donors can either choosespecific projects that they areinterested in or projects thatare at work in their localcommunity. Like an onlinesearch engine or directory,the microsite allows users toenter their postcode and findprojects in their local area.Each project has specificdescriptions and furtherinformation about how it’sfunding is spent. Once aproject has been fully fundedall donors will receive anupdate from the projectdemonstrating how theirmoney was spent and thedifference made to the livesof local children.

In the two months since itslaunch the site has alreadyraised over £100K and hassuccessfully funded five of itsprojects. With this initialsuccess Action for Childrenare making the microsite apermanent part of its fundingstructure.

Action for Children has beenworking to improve the livesof vulnerable children andyoung people in the UK forover 140 years. CEO ClareTickell has been an ACEVOmember for more than sixyears. If you would like to findout more about this or anypart of Action for Children’swork, you can contact Clarethrough the ACEVO website.Simply click Membership onwww.acevo.org.uk and log in.In the left-hand navigation,click Contact a Member tofind Clare and send her amessage.

SmallChangeBigDifference?The national referendumon 05 May will be the firstchance UK voters have hadto decide how their MPs getand stay elected.

Katie Ghose, CEO of theElectoral ReformSociety says: ‘The ElectoralReform Society has beenfighting for fairer votes inWestminster for over 100years. On 05 May we hope tofinally see our currentsystem - First-Past-the-Post, replaced with a bettersystem which gives votersmore power and forces allMPs to work harder atlistening and responding totheir electorate’s concerns'.

‘At the last election First-Past-the-Post allowed two-thirds of MPs to win theirseats with a minority

mandate, meaning most oftheir constituents votedagainst them. TheAlternative Vote (AV) aimsto change this as allcandidates will have to aimto get 50% of the vote.This means that MPswill have to reach out toevery corner of theirconstituency, rather thanrelying on their coresupporters to stay in power.

Katie continued: ‘Millionsof people in this countryalready use AV, includingcharities, unions andbusiness. Politiciansthemselves use it to electtheir leaders, their officialsand their candidates.

‘The Alternative Vote is asmall, sensible change thatwill make a big difference.It will make MPs workharder to get elected andgive voters more of a say. Ifwe don’t pull our politiciansinto line now, we may neverget another chance’.

NewBTCVChairRitaCliftonhasbeenappointedas thenewChairofBTCV, thesocial enterprisegroup.CliftonisUKChairof Interbrand, thebrandconsultancyandPresidentof theMRS. In thepast, shehasalsobeenCEOatInterbrandandViceChair atSaatchi&Saatchi.Cliftonsaid:“I amdelighted tobe joiningBTCVat this very importantandchallenging time.BTCVCEOTomFlood isanACEVOmemberand trustee.

Supported by Media partners

Surviving and Thriving –Actions for a

Third Sector Leader23 June 2011, 09:15 – 16:30

London

2011 will be a testing year for many third sector leaders. The ACEVO CEO Summit will examine the leadership and management challenges in the sector and will provide you with practical ideas and information on how to:

• Manage complex changes within your organisation

• Develop new strategies to survive the changing environment whilst delivering for beneficiaries

• Keep employees and volunteers engaged and motivated

Attend the conference and hear from experienced leaders in the voluntary, public and private sectors providing advice and thoughts on developments within the sector. Speakers include:

Richard Hawkes, CEO of Scope on how Scope will be led to success through its 60th year.

John Cridland, Director General of CBI on the positive outcomes ofprivate and third sector collaborations and how cross sector partnershipscan create capacity in both sectors.

Conference Highlights• Employee engagement – How CEOs can lead employees through

restructures and financial challenges keeping staff motivated• Innovation – How to create a culture of innovation to support

organisational sustainability• Cross sector partnerships – Working productively with other sectors• Networking – The ACEVO CEO Summit will provide the space for you

as a third sector leader to network and openly share your experiences, ideas and concerns with your peers.

How to Book Call 020 7280 4962, email [email protected] or visit www.ceosummit.org.uk

Standard Price: £201* /£273ACEVO Member Price: £135* /£165

Corporate Price: £243*/£273

*Early Bird Prices for bookings made before 20 May 2011

ASSOCIATION OF CHIEF EXECUTIVES OF VOLUNTARY [email protected] • www.acevo.org.uk • 020 7280 4962

Book before 20 May forearly birddiscounts


Me and My Chair

Tosaythat theChair-ChiefExecutiverelationship isimportant inacharity is

anunderstatement. Mutualtrust,understandingandcooperationbetweenthesetwopeople isonly thestartingpointforasuccessfulandsustainableorganisation.

Asharedsenseof thevisionandofhowthe tworoles interact isalso indispensable. Forall thejobdescriptions, proceduresandtermsof reference in theworld,nothingcanreplacean intuitivesenseofhowyouwork togetherandwhat youneed to leadordefer toeachotheron. It’s anartmore thanascienceandwithoutit you’regoingnowhere.

MyChair isLoydGrossmanOBE:businessman, culturalsector leaderand journalist.Loyd isa rarecombinationofbothapublic figurewhohashelpedraiseourprofile, andanengagedandeffectiveChairwhois interested in theworkingsoftheTrustandknowswhere theline isdrawnbetweentrusteeshipandmanagement.He isappointedby theArchbishops’ and thePrimeMinister’sAppointmentsSecretaries, but cameto theTrust -as I did - throughadvertisementand interview.

Loyd isalsoadonor:somethingwhich I think isnowadaysacrucial part of theroleofBoardChair, inanycharitywhich isasking individuals togive their ownmoney tosupportitswork. As trusteeofothercharitiesmyself, I underwenta

road toDamascus’ conversiononthis issuesomeyearsago. AlltrusteesatCCTareasked togiveaccording to theirmeans:Loydhimself playeda leadrole insettingupourDevelopment(fundraising)Boardandournewmajordonorstrategy.

Asachief executive I think itreallyhelps tohaveexperienceofbeingachair, orat least atrustee, oneself. As formerchairof theLondonCyclingCampaign,I knowwhat it feels like tobeavolunteerwith little time togetinto thedetail butabigresponsibility for theorganisation’sdirectionandsuccess. Havingput yourself inachair’s shoesyouhaveamuchbetter senseofwhat theyneedfromtheirChiefExecutive inorder todo their job.

ForLoyd, that job isaboutgettingout thereandengagingwith thepublic, thepress,politicians, and funders. It’saboutmakingsomething really

special of thankingvolunteers,staff anddonorsandaddingweightandsparkle toTrustevents. TheChair’s job isaboutbeingabigpart of thepublicface.

It’s alsoof course to leadandlookafter theBoardofTrusteesandknowenoughabout thebusiness tobeable tosupporttheChiefExecutiveon thecriticalissues.

Whatmakes itwork?Goodhousekeepingincluding regular catch-ups;phoneconversationsonimportant issues;doingadouble-actonkeyexternalnetworking. It canhelp tohaveoneor twoareasofparticularexpertisewherewedosomehands-onwork together–withLoydand I, it tends tobe themajordonor fundraising,Government liaisonandofcourse,Boardplanning.

TheChiefExecutiveneedstomakesure that therelationshipworks–byrespondingconstructively,providing thesupport andinformationaChairneedsandrunning theorganisationwell. Problemsoccurwhenthere’sa vacuum,sokeepingallthoseballswell up in theair isonesure-fireway tokeepyourChairhappy.WhatagoodChairdoes in returnis to resist comingupwith tenbright ideasbeforebreakfast,noneofwhichsupport theagreedstrategicaims. Not thatthathaseverhappened tomeofcourse.

Crispin Truman, CEO at The Churches Conservation Trust on his strong relationshipwith his celebrityChair Loyd GrossmanOBE.

As a chiefexecutive Ithink it reallyhelps to haveexperience ofbeing a chair,or at least atrustee, oneself.


Proving Your Worth

Measuring impact ischallenging for anycharity. But for an

infrastructure organisationlike ACEVO, with nearly2,000 members heading upcharities of all shapes andsizes, it can be a particularlyhard nut to crack. How doesACEVO go about assessingthe difference it makesthrough its work?

ACEVO plays an importantrole in the third sector,through the support andresources it brings tocharities, and by providing avoice for organisations in thewider world. But ACEVO hasfound it difficult at times tofind a way to demonstrate theimpact it creates.

In these belt-tighteningtimes, charities need to beable to make a good case forfunding to a range ofaudiences. At the same time,there are also internalmotivations for looking toimprove the way a charitymeasures its impact.

With this in mind, ACEVOenlisted the help of charityconsultancy and think tankNew Philanthropy Capital(NPC) last year. NPC has tenyears of experience ofanalysing charities andassessing the impact they aremaking. It has developed arobust methodology based onthe hundreds of organisationsit has worked with, sharing its

knowledge through onlineresources including its guideto analysing charities,The Little Blue Book. It alsooffers a tailored consultancyservice which, amongstother things, helpsorganisations to measureand communicate theimpact they create.

Defining a visionOne of the difficulties allorganisations face inmeasuring and articulatingtheir impact is the need todefine their vision veryclearly. This is challengingenough for organisationsdelivering direct services.It is even harder for anorganisation like ACEVOwhich is achieving its aims viaanother tier of organisations.

ACEVO’s vision is for athriving third sector. Likemany infrastructureorganisations, its aims referto the sector as a whole. Butwhat does a thriving thirdsector look like? How canone measure something aswide-ranging as whetherthe sector has improved ornot? And if the sector doesimprove, how can it beattributed to ACEVO?

To begin to answer thesekinds of questions, NPCfacilitated a workshop witha group of staff from ACEVO.The aim of this workshopwas to map ACEVO’s ‘theoryof change’.

Linking activities tovisionA theory of change is agraphic representation of thesteps required to reach afinal, long-term goal—oftenpresented as a series ofslides with lots of arrows.Like a map, it lays out a routeto achieving a major aim insmall, manageable steps,linking day-to-day activitiesto overall vision.

Rather than starting withwhat an organisation isalready doing and trying tolink this to what it hopes toachieve, a theory of changebegins with the charity’svision. It identifies theoutcomes required to realisethat vision, and the activitiesor interventions leading tothose outcomes. There maybe many outcomes that cometogether to realise a vision,and they must all beconsidered.

Working out a theory ofchange takes time and effort,and relies on staffengagement. Without clearinput from the staff who carryout an organisation’sactivities, it is hard to build upa realistic picture of what anorganisation is doing.

The value of a theoryof changeFor NPC, creating a theory ofchange is the starting pointfor measuring impact.Mapping a theory of change

ACEVO’s visionis for a thrivingthird sector.Like manyinfrastructureorganisations,its aims referto the sector asa whole.

NewPhilanthropy Capital (NPC) is helping ACEVO tomeasure its impact. MatildaMacduff fromNPCexplains the stages of this interesting process.

also helps an organisation tocome up with a narrativeabout its work, helping toestablish a causalrelationship between itsactivities and positive changeby showing how certainoutcomes follow on from itswork. It can also informstrategic decisions: bybreaking down vision andoutcomes into day-to-dayactivities, an organisation cancompare activities in itstheory of change to theactivities it is currently doing.

If the two don’t match up, it islikely that it is not achievingwhat it hopes to. By refiningits strategy to reflect theactivities drawn out by thetheory of change, theorganisation can ensure thatit is doing what it set out to aseffectively as possible.

Producing a theory of changecan be particularly useful foradvocacy and membershiporganisations like ACEVO,which can find it challengingto communicate what they do.By mapping out activities inrelation to an overall aim,organisations candemonstrate just how muchwork they carry out in orderto achieve each outcome.

What’s next for NPCand ACEVO?The first stage of the project,developing the theory ofchange is complete, and NPCand ACEVO are now working

on the second stage: creatingthe tools to enable ACEVO tocapture the data needed tomeasure its impact. Thisframework will be piloted byACEVO in the spring and afterthat will be made available toother organisations.

Both NPC and ACEVO arekeen to encouragemorecharities to go public with theirapproaches tomeasurement.

ACEVO network winter 2011 15

ACEVO’sDirectorofStrategy,SebElsworth

“We know throughanecdotes and feedbackhow successful our workhas been, both in terms ofsupporting ourmembersand influencing policy, but

we recognise that we need amore systematic way of provingthis success to strategic funders, partners andmembers.Improving our impactmeasurement will also help us tounderstand ourselves better and knowwhat works and whatdoesn’t. We are working with NPC to ensure that we aremeasuring the right things.We also wanted tomake sure that the results of thisproject would benefit the sectormore widely and so we aremaking the framework available to others. We hope thatthe framework can help advocacy andmembershiporganisations to prove their worth to potential funders ata timewhen there is pressure to stand out.”

AngelaKail,oneofNPC’sSeniorConsultants

“Using a theory of change allowsorganisations to capture all the stepsinvolved inanorganisation’swork andevery outcome that’s achieved, andsee how they link together. It’s onlyonce we can see how impact is

created, that we can decide what are themost importantthings tomeasure.All too often charities are thinking aboutmeasurement inisolation. Where organisations aremaking steps forwardwith impactmeasurement we think it is vital that they sharewhat they have learnt. By supporting each other in this way,charitiescangetbetteratcommunicating thevalueofwhat theydo”.

For more information about the project, contact SebElsworth at ACEVO, or Angela Kail at New PhilanthropyCapital or visit www.acevo.org.uk/impactframeworkTo find out more about NPC’s consulting services, visitwww.philanthropycapital.org

Theoryofwhat?Theories of change havetheir roots in thework ofthe evaluationcommunity, and havebecome increasinglypopular in the last fiveyears. Some people usethe term interchangeablywith “logicmodels”,although it differs fromthesemodels because itshows a causal pathwayand requires a cleararticulation of underlyingassumptionswhich canbe tested andmeasured.For a range of resources,tips and tools, visitwww.theoryofchange.orgthewebsitewhich is theresult of a collaborationbetween the AspenInstitute andActKnowledge.

Hosted by Media partners

The Journey to Becoming a CEO03 June 2011, 09:15 – 16:30, London

How good is your senior management team at communicating with you? Our Future Leaders Summit will provide practical support for futureleaders and senior managers helping them to develop communication skills important at director level. The focus of this summit will be on results-drivencommunication between senior management teams, the CEO and board members. It will also focus on developing the upward management skills of third sector directors.Whether new or experienced directors, this conference will help delegates develop theright communication skills.

Delegates will also hear candid accounts from high profile third sector leaders andentrepreneurs on how they have built their careers, overcoming the challenges they havefaced through effectively communicating.

This conference for third sector directors will cover:

• Upward management – How to positively influence your manager

• Communication skills – Successful communication with the CEO, the board and othersin the senior management team

• Social skills – Using a practical toolkit to apply social and emotional intelligence

• Networking skills – Developing networking skills and making the most of networking opportunities

How to Book Call 020 7280 4962, email [email protected] or visit www.acevofutureleaders.org.uk

Standard Price: £185* /£215ACEVO Member Price: £102* /£132Corporate Price: £193*/£223*Early Bird Prices for bookings made before 03 May 2011

ASSOCIATION OF CHIEF EXECUTIVES OF VOLUNTARY [email protected] • www.acevo.org.uk • 020 7280 4962

Supported by

Book before 03 May forearly birddiscounts

Leadership Team RIP?ACEVO network spring 2011 17

LuminariessuchasClinton,Obama,Blair,CameronandevenBubb,

haveall toldus thatweshould‘nevermiss theopportunityofagoodcrisis’.

In thegrowth years,manycharitieswere inexpansionmode; thebusiness case toaddnewskills andexperiencethroughahigher senior headcountwascompelling. Theargument togivepeople a seatat the top table irresistible.Thesewere thegood yearsandthesector endedupwith largeandstrong leadership teams.

Performancemanagementwasanactivity everyonesignedupto, but in realitywasa lowerpriority. SirCliveWoodward, notalwaysknown forhis soft side,observed that givingaplayer theEnglandCaptaincywaswonderful but taking it awaywassimply awful. This rings true formanyof us.

Havinghadover adecadeofgrowth, it’s not surprising thatchairs andchief executives arenowstruggling toget to gripswith reducing theheadcountand refocusing their top team.Thereare lots of differenteuphemisms for this:transforming, restructuring,reconfiguring, downsizing,rightsizing - the list goeson. It’salways sensitive becausewearedealingwithpeople andhavingadirect impact on their careersand livelihoods. Statementssuchas ‘Thestaff really like

them’; ‘Theyarenot that badatthe job’; ‘Theywill reallystruggle toget another job’ or‘Wemight endup ina tribunal’canbeheartfelt but arenotlegitimate reasons fornottakingaction.

attenti is backedbyprivateequity guru,mediapersonalityandChair of theBig Issue,JamesCaan.Hismantra is thathe invests in leadership teams,not theorganisation.Getting theright top team isabsolutelycrucial to tackle the challengesahead. Tinkeringat themarginswon’t do.Havinghelpeda varietyof organisationsdo this over thepast 18monthsour advicewouldbeas follows.

Ensure youand your trusteesareon thesamepageabout thefutureandwhatneeds tobedone.Reshaping the team isacritical leadership task; don’tdelegate this toHRor legaladvisors.

Get thenumbersand theforecasting right.Beclear abouthowyouwant your top teamtooperate in the future.Usebehavioural competenciesrather thansimple job tasksorjob functions tohelpwithevaluations.

Consultation has a place - beopen and transparent aboutthe process but don’t wasteeffort trying to getconsensus. Have honest,face-to-face conversationswith everyone affected. If you

don’t see them as part of thefuture say so: deep downpeople want to know wherethey stand; and they need tohear it direct.

Don’t just rely onan interview.Weknow that validity increases,themoredata you take intoaccountwhenmakingselectiondecisions. Soget independentsupport andensure youuseother assessment tools suchasscenario interviewsorpsychometrics, givinghonestfeedback. The informationgainedwill be invaluable forfuture teamdevelopment andalsoof great value to thosewhofind themselvesbackon the jobmarket.

When decisions aremade, acton them swiftly. Allow peoplethe dignity of communicatingthe outcome to their peers andteam first, however long drawnout notice periods are self-defeating. This kind of overallapproach reduces the worryof tribunals as people arefar less likely to go downthat route.

Finally, give asmuchpersonalsupport as youcan.Anoldmentor ofmineused to say ‘Pipethemashore rather thanmakethemwalkplank’.

DavidFieldingMBEleads theNot forProfit recruitmentpracticeatattenti and isoneoftheUK’s leadinghead-hunters.He isa trustee forEquinoxCareandaspecialadvisor toACEVO.

Downsizingdoesn’thavetomeanthedeathofyour leadership team.DavidFielding,Directoratattentioffersadviceonhowtorestructureandrefocusyour leadership teammaking it fightingfit for thefuture.

Ensure you andyour trusteesare on the samepage about thefuture andwhat needs tobe done.


Member Tried & Tested

Doyouneed to implementstrategic change?Couldaconsultanthelp youmanagetransitionwithin yourorganisation?Contractingaconsultant toworkwith yourorganisationcanbeadifficult anddaunting task.Howcan theright consultantbeappointed?Theconsultancyservice teamatACEVOunderstands thesechallengesandwill provideyouwithaconfidential, efficient and freeservice toassist you inchoosingthe right consultant for yourorganisation.Wewill findoutwhat yourneedsareandprovideyouwithashortlist of qualifiedconsultants tochoose from.ReadwhatsomeACEVOmembershavesaidabout theconsultantsfromour list.

“AtCatsProtectionwetendered for consultancyworkforourseniormanagementstructure reviewand thepanelof

threemanagershadnohesitation inappointing thisworthyconsultant.Thetaskwascarriedout inanexcellentmanner,givingsound,wellreasonedadviceaswell asimplementationsupport.More recentlywehaveneededfurtherwork in relationtoour regional structuresandappointed this consultantonceagain.” CatsProtection

“This consultant did awide-rangingmanagement reviewatVictimSupport andgainedwiderespect there, bothby theCEOand trusteeswhohadcommissioned thework, andalsoby themanagerswhohad tocarry forwardthe implementation.This led to an invitationback todootherpiecesofwork.”VictimSupport

Formore informationonACEVOConsulting,callOrliGorenskion02072804976.

ACEVOWorklifeSupportEmployeeAssistanceProgrammeWith the public spending cuts hitting the third sector it isinevitable that your employees may feel the strain, both atwork and at home.

ACEVO works in partnership with Worklife Support toprovide a support service for members and their staffthrough the Employee Assistance Programme. This servicenot only helps progressive organisations to satisfy theirduty of care to employees but also to reduce costs andlimits business risk by resolving potential problemspromptly and constructively.

ACEVO Member David Blackburn, Director of HR &Business Support at Shepherds Bush Housing Grouphas said of the service:

“Our EAP has helped us to maintain both a low turnoverand low sickness absence levels in some of the mostchallenging times.”

The ACEVO Worklife Support EAP gives employees andtheir families’ unlimited 24-hour telephone access to ateam of specialist advisors and counselors to help resolvea wide range of personal or work-related issues fromprofessional guidance and counseling, to financial andlegal information and advice.

For further details email [email protected] call 0845 873 5680.

Your membership gives you access to valuable resources. Readabout some member benefits and feedback from your peers.

Special Interest GroupsSIGsareanopportunity for thosefromaspecificsectororwithaparticularareaof interestshareexperiencesanddevelopsolutionstoproblemswithin theirremit.Eachgroup ischairedbyanACEVOmemberandsupportedbystaff fromACEVO.EachSIGhasmeetingsthroughout theyearwheremembersof theSIGcanget togethertotalkaboutthelatestissues,policyandlegislativechanges.

ThesefreemeetingsareopentoallACEVOFullandAssociateMembers.A listofSIGsandmeetingdates for2011canbefoundonthewebsite.Visitwww.acevo.org.uk/specialinterestgroups


Better Monitoring and Evaluation

It’s a daunting task to beginmeasuring theeffectiveness of your

organisation’swork, both inrelation to knowingwhat tomeasure andwhat youmightdiscover. The key to success isthe involvement of fundersand service users. Exploringthe factors that lead to poorperformance in currentmonitoring and evaluationpractice offers somesupporting evidence.

In recent years, somefunders (they will remainunnamed!) have designedmonitoring and evaluationsystems in isolation, awayfrom the projects and servicesthey fund, and have thenpassed these evaluationssystems down to servicedeliverers to complete. As aresult, these systems feelmore like an imposition, ratherthan a vital check of how ourprojects and services areperforming. At best we can feeldemotivated; it can feel like achore, and at worst, we feelfrustration at being asked tomeasure the wrong things.

Without entering into adiscussion to create a systemthat works for funders, servicedeliverers, and service usersalike, we tend to jump throughhoops, half-heartedlycompleting themonitoring andevaluation reports we inherit.Of course, this keeps thefunders happy, whichsubsequently keeps fundingrolling in. But let’s take alonger term view of the

situation. These evaluationmethods give funders the falseimpression that they arecollecting the rightinformation, and it hampersour ability to conduct effectivemonitoring and evaluation. Weoften fail to learn and thereforefail to apply any learningbecause we lack the right dataandmotivation to do so.Ultimately, it’s our serviceusers that are affected.

We are often guilty ofcommitting the same errorwhen it comes to ourrelationship with stakeholders.If we develop indicators andoutcomes in consultation withour funders, we can be a littletoo convinced of our ownwisdom. There’s a temptationto second guess what isimportant to our service users,rather than just asking them.We’re the experts, right? Thisapproach can lead to vitalinformation being overlooked,and it can have a knock-oneffect on the services weprovide. WRVS’s project tocapture what is importantillustrates this point perfectly.

Until two years agoWRVSmeasured the effectiveness ofits work largely bymeasuringnumbers, for example, howmanymeals on wheels weredelivered on target. The seniormanagement team took thebold decision to ask thequestion ‘so what?’ Theywanted to knowwhatdifference their servicesactuallymade to service users’lives. After commissioning

researchers to ask serviceusers what reallymatters tothem,WRVS found that someparticipants in themeals onwheels programme did not eatthemeals they received, yetthey continued to participate,because the human contactleft them feeling less isolated.WRVS still measure thenumber ofmeals delivered,but theirmonitoring andevaluation is now gearedtowardsmeasuring softeroutcomes, such as reducedisolation and increasedconfidence.

Therearenumerouspressuresonboth fundersandservicedeliverers,whichmakefor an imperfect relationshipwhen it comes tomonitoringandevaluating services.However,bothpartiesultimately strive toachieve thesamegoal: a betterstandardof living for thepeoplethey support. Rather thanentrenchingoldnotionsofwhatcounts as success,weneed torecognise that effectivemonitoringandevaluation isdependent on the involvementof both funders and serviceusers.

NewPhilanthropy Capital hasreleased a newpublicationwhichwill explorewhatfunders can do to helpcharities conductmonitoringand evaluation anddemonstrate impactmoreeffectively.Helping GranteesFocus on Impact is availableto download free atwww.philanthropycapital.org

LiamCranley, Head of ImpACT at the ACEVOhosted ImpACTCoalition drives home the importance ofknowingwhat tomeasure.

There arenumerouspressures onboth funders andservice deliverers,whichmake foran imperfectrelationship whenit comes tomonitoring andevaluatingservices.


Improving NHS and Third Sector Relations

Forthe25years Ihaveworked in thethirdsector, improving

relationswith theNHShasbeenanunfulfilledaspirationfor thesector. In late2009theDepartmentofHealth fundedthroughbothACEVOandNHSSouthwest,aproject to identifyactionsthatcould improverelations.

As a longstanding ACEVOmember and also aNon-ExecutiveDirector atNHSSouthwest I led theworkingparty of regionalNHS, thirdsector infrastructure anddelivery organisations taskedwith this challenge.Wemet insummer 2010 – just as theextent of theNHS reformswasbecomingapparent, immediatelyrendering our task nighimpossible. In responsewefocused our thinking onidentifying relatively simpletransactional changeswhichmight survive the hiatus, andindeed give both sectors abetter chance of success in theturmoil.

It is not possible to set outall the findings in this spacesoI’lloutlinetheleadershipandbehavioural challengesweidentified – the challengeswherewe as third sectorleaderscouldmakeadifference.

QIPP– theonly certaingame in townQIPP (Quality InnovationProductivity andPrevention) istheNHS savings-through-improving-quality-and-productivity programme. The

aim is to commission the rightservices – as defined by patientexperience - for patients in theright place, at the right time andto decommission serviceswhich do not provide this, thusreducing the cost base of theNHSby the equivalent of £25bnby 2014.

QIPPmatters,moreperhaps than any otherNHSinitiative at themoment,because there are imperativesabout reducingNHSexpenditurewhichwill surviveany politically inspired changesin structure, and it will bearound for at least another fouryears. QIPP planswill informallcommissioning – nomatterwho is doing it - and thus theflows ofNHS funds into oursector. QIPPworkstreamscover all aspects of healthcareand is happening in everylocality at PCT level. QIPP givesthe third sector an unrivalledopportunity to influenceNHSplanning to improve servicesand create a richermoreresponsive health economy inwhich the sector’s unique rolesin user empowerment, usercentred service design andholistic working can flourish.

With its insights intowhatmakesarealdifference topatients, its capacity toprovidealternativeandoftenmorecosteffectiveservicesand thedegreetowhich it is trustedbypatients,the thirdsectorshouldbewellintegrated into thisplanning–but it rarely is.

Dowehave ourselves toblame? Howeasy dowemake

it for theNHS to engagewithus? Dowe subsumeorganisational differences inorder to provide a coherentnarrative to theNHS? Dowework to strengthen our localinfrastructure bodies so theycan perform that function or dowe ignore them? Do ourentrepreneurial andcompetitive spirits identifymarket opportunities and go forthem regardless ofwhatgreater gains could be got byco-operation?Canwe betrusted? ShouldQIPP identifydecommissioning of ‘popularbut actually unnecessary’facilities to explain the rationaleto our constituents orwill we,knees a-jerk, attack “the cuts”?Canwe be trustedwith planswhich are half formed?Doweknowwhenwe are lobbying andwhenwe are contributing ideasfor the greater good?

As becameapparent in ourworking party, to theNHS theanswer tomany of thesequestions appears to be ‘No’.Ourworking party evidenced anall-round enthusiasm for theinput of the sector to QIPPplanning but these significantbarriers stand in theway ofmaking it happen. A lot of themare barriers of our ownmaking– it is up to uswhetherwedismantle them.

Whatcanthethirdsectordotoimproverelationswith theNHS?Contact theACEVOPolicyTeamorstartadiscussionontheACEVOLinkedIngroupwww.linkedin.com

Inresponsewefocusedourthinking toidentifyingrelativelysimpletransactionalchangeswhichmightsurvive thehiatus,andindeedgivebothsectorsabetterchanceofsuccessin the turmoil.

AlisonRyan, Chief Executive ofWeldmarHospicecare Trust askswhether and how the third sectorcan improve relationswith theNHS.


A Big Society Adventure

During the ‘70s therewas a TV programmecalledNai Zindagi Naya

Jeevan. Translated itmeansnewway and new life. Forthose of us thatmigratedfromour Commonwealthvillages to inner city Britain,it was indeed a huge leap offaith, a big adventure.

My Punjabi family found itselfin Handsworth, living cheek-by-jowl with Caribbeans andPakistanis. With limitedresources but a determinationto do well, we looked out foreach other. When ourneighbourMack returned fromJamaica in ill-health, we puthim up for as long as heneeded. When the local shopbecame vacant, we clubbedtogether to set up a placewhere we could buy and sellour specialist spices andvegetables. Whenwewerejoined by Hindus exiled fromUganda, we helped themconvert a derelict house into atemple. This was Big Society.

Many readers will recountsimilar stories of theirnurturing communities andthere are countless examplesof areas where suchengagement prevails.However, the core values of abig society - reciprocation,respect and responsibility – areonly intermittently exposed.Poverty, exclusion, wealth andfear have produced amoreatomised society. We have alsoallowed the State to grow and

develop in a way that hasstifled individuals’ desire andability to share, care andappreciate others. The senseof adventure that unified post-war Britons andCommonwealthmigrants hasbeen eroded. Re-imagininghowwe live and work willreunite us and help revive ourconcern for each other.

The pressure on publicbudgets, encouragesreconfiguration of front-lineprovision. Instead ofreplicating pre-determinedmodels of delivery, voluntarygroups and volunteers canwork with authorities and localcompanies to co-design whatworks for them. In anyneighbourhood, there will bemany groups doing theirutmost to serve residents.Why not co-locate and sharecosts? Better still, could webear to give up premises andjust set up a community deskin the lobby of a supermarket?The administrative headacheof running a small voluntaryorganisation can too easilydistract from the provision ofcore services. Furthermore,technological advances havediminished the need forface-to-face servicing. Forthose who remain digitallyexcluded, a friendly andaccessible figure near thefront door of an Iceland orAldi, could provide valuablesignposting.

Any local group that helps

elderly neighbours, challengesschool exclusions or has had toask for planning permission,will know how obtuse the rulescan be. Government isaddressing themost absurdregulations. Despite this, ourprocedures remain complex.Many employers are beginningto realise the value ofvolunteering their professionalskills; it is common practice inthe legal profession. There isample scope for architects,accountants, surveyors,marketers and IT people toprovide pro-bono support.

But it’s not just about sharingskills. Toomuch is regulatedand from too high a level.Individual judgement anddiscretion becomes exempted.Other parts of Europedemonstrate that at a locallevel, people and theircommunities can be trusted todomore for themselves. Innorthern Holland and parts ofDenmark, road signs and eventraffic lights have beenremoved to encouragepedestrians and drivers to bemoremindful of each other.Guess what? The number ofaccidents droppeddramatically. The welcomecontraction of the Stateprovides an opportunity toestablish newways of livingand working. Restoring asense of adventure will helpliberate the core values ofreciprocation, respect andresponsibility and establish amore pervasive Big Society.

TheBigSocietyagenda, inpart, focusesonamorelocalviewwithresponsibilitiesmovingfromtheState tocommunities.SukhvinderKaur-Stubbs,ChairofVolunteeringEnglandthinksthiscouldbeawelcomeadventure.

Instead ofreplicatingpre-determinedmodels ofdelivery,voluntarygroups andvolunteers canwork withauthorities andlocal companiesto co-designwhat worksfor them.

“Behonest andopenbut donConfessions of a CEO Julie Bentley, Chief Executive, FPA


Birth date and placeMarch 1969, Chelmsford,EssexSecondary school anduniversityPlume ComprehensiveSchool, then a Diploma inCounselling and a Diploma inManagement part-time atGoldsmiths University,followed by three years parttime study at Open Universityfor my Masters in BusinessAdministration.Early career roles up tothe presentI started my professionalcareer as a Youth worker inEssex before moving toLondon in the early ‘90s. Iworked as a Young People’sdrugs and sexual healthworker for a voluntary sectorsettlement calledCharterhouse in Southwark.I was promoted to CentreManager and then AssistantDirector. I moved on tobecome Director of ACCEPT,an organisation supportingpeople with problematicalcohol use before takingACCEPT through a mergerwith substance misusecharity ARP. There I becameDirector of CorporateDevelopment. After fouryears at ARP, I left to becomeCEO at the Suzy LamplughTrust, taking over leadershipfrom the founder DianaLamplugh. I have been CEOat sexual health charity FPAfor the past three years.FamilyPartner Sean, an elder

brother and sister, threenieces, five nephews and agreat nephew!Area that you live in:Greenwich, LondonHobbiesReading, time with friendsand cycling.Last holidayDahab, EgyptLength of membership ofACEVOSeven yearsWhy did you join ACEVO?In the early days to getsupport as a reasonably newand young CEO. Morerecently, I value theopportunity to share ideaswith peers and hear howcolleagues are dealing withthe challenges of being CEO.What ACEVO service wouldyou recommend othermembers try ASAP?The special interest groupsare useful for gettingtogether with others in yourparticular area of operation.What does FPA do?FPA is a sexual healthcharity, we provideinformation, education andadvice services to realise ourmission of a society in whicheveryone has positive,informed and non-judgmental attitudes to sexand relationships; whereeveryone can make informedchoices about sex,relationships, andreproduction so that they canenjoy sexual health free fromprejudice or harm.We run a national sexual

health helpline that receivesalmost 45,000 calls andemails a year; delivertraining to support healthand social careprofessionals; runcommunity projects; developeducational materials forGPs, clinics, schools, youthclubs and individuals;manage the award winning‘Speakeasy’ programmehelping parents understandhow to support their childrenthrough puberty and runpublic awareness campaignsto challenge sexual healthmyths. Most importantly, wecampaign for people’s rightssuch as our campaign on thesexual rights of people withlearning disabilities; thereproductive rights forwomen and for statutoryrelationships and sexeducation for all children andyoung people.Last year FPA won aCharity Award. Whatadvice would you giveanother CEO submittinga project?We were really proud to winthe disability category of theCharity Awards for oureducational resource ‘Allabout us’ for people withlearning disabilities. I think agood project sells itself butit’s always stiff competitionso make sure you fullyevidence how your projectmeets each of the criteriaand convey yourorganisational passion forthe project.

In the mostrecent staffsurvey, 93% ofstaff said theywere proud to bepart of the FPAteam. I’m proudof that result.


How has the ComprehensiveSpending Review affectedFPA? And which of yourservices, are likely to beaffected most?Like others, FPA is feelingthe impact of the cuts. Ourcommunity projects foryoung people and parents areparticularly vulnerable andwe were aware that some ofthese projects would not befunded beyond March. It’s areal concern since our workensures that young peoplegrow up knowing how toprotect their health and howto take responsibility for theirbehaviour. The bedrock ofsociety is its reliance ondeveloping mature, self-confident, personallyresponsible citizens. Cuts toFPA services and othercharities affected couldseriously compromise thecritical support that the nextgeneration needs. This willimpact individuals and theeconomy too. For every £1spent on contraception thestate saves £11. It soundssimple but if we lose theservices that support peopleon things like contraceptives,the rate of unplannedpregnancy, (currently at itslowest for twenty years), willrise - alongside theassociated social costs. Thisis only one example of many.What is the best advice youhave ever been given as aleader?Good leaders are bothprincipled and pragmatic;

apply both to your leadership.What is the best advice youhave given as a leader?Be honest and open but don’ttry to please everyone.People need their CEO to be aleader that they can trust -not a friend.How would you describeyour leadership style? Andwhat has contributed themost to this style?I try to lead by example, withintegrity, and in acollaborative way – I’m sure Idon’t always manage to do itperfectly! I believe that to bea good leader it’s necessaryto like, respect and trustpeople. That is always mystarting point, assume thebest of people, generally, inmy experience, they don’tdisappoint.What has been the changethat you have implementedat FPA that you have beenmost proud of?Working with the staff teamto develop a five yearstrategic plan. It created aclear organisational directionalongside an ongoing processof culture change thatpromotes a more inclusiveand open leadership style. Inthe most recent staff survey,93% of staff said they wereproud to be part of the FPAteam. I’m proud of thatresult.What was on the top of yourto-do list to complete lastmonth?Where do I start! Two of themost pressing things were;

preparation of board papers -specifically the draft budgetfor the financial year andplanning the next phase ofimplementing our new YouthAdvisory Committee.What books are you readingat the moment?The Story of the Night byColm ToibinNudge: Improving Decisionsabout Health, Wealth andHappiness by Richard HThaler and Cass R SunsteinDo you make donations to acharity?Yes to several, including TheBritish HumanistAssociation; a small charitythat builds schools in Indiacalled Seham Village Appeal;

Samaritans and Brook YoungPeoples’ Sexual HealthCharity. I also cycled fromLands End to John O’ Groatslast year with my partner toraise funds for FPA.Name three things youwould put in Room 101and why?The Daily Mail, for itssensationalised andjudgemental opinions onsexual health andrelationship issues.My blackberry, but only whenI’m on holiday so I can’t betempted to do work whilst I’mmeant to be relaxing.Barbie, because that’s onerole model that young girlscan do without!

n’t try to pleaseeveryone.”

Big Decisions in Big Society24 ACEVO network spring 2011

Whilemuch of thepublic sector isfeeling the pain of

severe cuts to services,voluntary and communityorganisations are facing aneven greater challenge asthey are called upon to helpfill the resulting gaps indelivery.

Some organisations will havethe resources and capabilityto step up to the Big Societychallenge and help provide‘more for less’, but for manythe biggest challenge willsimply be to survive. Indeed,recent research we carriedout with Ipsos MORI for ourTough Choices report showedthat one in five leaders ofcommunity and socialorganisations felt thatcompetition and stayingafloat would be their biggestrisk priorities in the next fiveyears – a challenge made allthe more difficult by fallingvolunteer numbers.There is no silver bulletsolution on how to cope withthe cuts, but there are stepscommunity organisations cantake to capitalise on theopportunities afforded byincreased localism andestablish new incomestreams whilst shoring upexisting ones

Onemeasure is for voluntaryorganisations to beginthinking more likecommercial businesses – forexample, by bidding more

competitively and tenderingfor contracts from public andprivate sectors.A proactive and collaborativeapproach is key; organisationsmust consider engagingdirectly with local authoritiesto help shape and drive theiragenda. Together, they shouldlook not only at what servicescould be delivered byvoluntary groups, but shouldthen continue working withlocal authorities to help makethat happen. There may alsobe opportunities tocollaborate outside of localgovernment, for exampleworking with local businessesto pool resources.

Another option is to move tooutcome-based paymentwhich, with a carefully-planned and closely-managed transition process,could make a difference.Senior teams will need tolook at cash flow and possiblefunding gaps, and considerhow they can attract investorsto share the returns and helpplug those gaps. If funding isneeded to support outcome-based models, it may bepossible to take out a loan ordraw on reserves.Importantly, for this step towork, communityorganisations will need tohave appropriatemechanisms in place toaccurately cost the servicesfor which they are bidding,and to demonstrate theirability to deliver the

necessary outcomes. Onlywith accurate costings will itbe clear whether the contractis worthwhile – better todecline an opportunity thatoffers a low return thanproceed and risk theorganisation’s longer-termsuccess.

However, critical toimplementing any of theseoptions successfully isrigorous risk assessment andmanagement procedures,before embarking on atransition to new fundingmodels or ways of working.Some changes may haveunforeseen risks which mayhinder, rather than help, anorganisation achieve itsgoals. Not only could this beseriously detrimental to theorganisation, but it couldmean the local populationsuffers. Our research alsoshowed that nearly two thirdsof people (59%) believecharities and socialorganisations should not takeon a bigger role in servicedelivery. It is now up to theinnovative communityorganisations up and downthe UK, to prove that the roleis not too big and one they arebest-placed to fill.

To download your copy ofZurich’s research paper ToughChoices - Differentperspectives on long-termrisks facing the public sectorandwider civil society, visitwww.NewWorldofRisk.com

A proactive andcollaborativeapproach is key;organisationsmust considerengagingdirectly withlocal authoritiesto help shapeand drive theiragenda.

Paul Emery, Head of Community and Social Organisations at Zurich on the risk factors non-profitorganisations should consider if they are to survive in Big Society.

Drawing on all Resources?ACEVO network spring 2011 25

Drawing on allResources? a recentreport from ACEVO and

ippr north, shows that LocalEnterprise Partnerships(LEPs) in theNorth of Englandare failing to utilise the fullpotential of the voluntary andcommunity sector (VCS) andsocial enterprise (SE).

Despite the Regional GrowthWhite Paper explicitlyrecognising our sector asstakeholders in the newpartnerships, only half of theLEPs examined had expressedcommitment to including arepresentative on their board,and one LEPmade nomentionwhatsoever of the role thesectormight play in growingthe economy. Alongside this,the research also revealed thatin practice, a number ofnorthern LEPs are failing toappoint voluntary sector orsocial enterprise leaders,despite the assurances voicedearlier in the process.LEPs are central to theGovernment’s aspirations to‘rebalance the economy’, froma reliance on the public pursetowards business-led growthwhich reaches beyond theSouth East. In the currentclimate and without anyallocation of centralGovernment resource, this is aweighty responsibility,especially in the northernregions, where spending cutsare expected to have adisproportionately negativeeffect. It is crucial to the

success of LEPs that they drawon all the resources that areavailable to them andmany aremissing a trick by notrecognising the vitalcontribution of the VCS and SEto economic development.

ACEVO first wrote to DCLGMinister, Greg Clark, followingthe glaring omission of anyreference to the sector in theinitial letter inviting LocalAuthorities and private sectorleaders to establish LEPs.Following our analysis of theproposals submitted to DCLG,wewrote again, pointing outthat 70% of approved LEPs hadno plans for VCS or SErepresentation on their Board.With thirty partnerships nowapproved across the country,Drawing on all Resources?calls on central Government tobemore explicit about the roleof the sector in rebalancing theeconomy, and to encourage thesecond wave of LEPs to givemore specific consideration tothe voluntary sector and socialenterprise in their proposals.

The report calls on LEPs todevelop inclusive andtransparent structures whichengage a wide range ofstakeholders, with a number ofchannels for involving thevoluntary sector appropriately.The ultimate challenge will liewith voluntary sector andsocial enterprise leaders. Withthe withdrawal of top downtargets, an edict from theGovernment to involve the

sector is unlikely. If we are toensure that we are engaged instrategic discussions in ourarea, it is crucial that weexpress our value in amannerwhich demonstrates ourcontribution to economicgrowth and the priorities ofthe LEPs.

We know that our sectoremploys 3% of the UKworkforce and turns overmorethan the car industry, but ourvalue goes beyond ourcontribution to GDP.

VCS and SE organisationsimpactmarket behaviour andactivities; raising skills in thelocal labour force, improvingquality of life and wellbeing.We create social capital, moreplural economies andentrepreneurship. These areall essential to innovation andeconomic resilience.ippr north found that indeprived communitieseconomic growth wasaccelerated where there was‘positive community outlook’,described as a strong andactive voluntary sector. Wherethis existed, so did effectivetraining and employmentsupport, activities for youngpeople, enterprise support,regeneration and housingprovision, as well as a crucialvoice for excluded people.The sector has at its finger tipsa powerful story to tell. Ourchallenge is to co-ordinate,demonstrate and evidenceeffectively.

We know thatour sectoremploys 3%of the UKworkforce andturns over morethan the carindustry, butour value goesbeyond ourcontributionto GDP.

ErinMcFeely, Head of Strategy&Development highlights key findings fromACEVO’s latest reportwith ippr north.

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Followingunrest in theMiddleEast, theChineseGovernment isambivalent

aboutgatheringsof foreigners."International conferenceswillbesubject tostricterapprovalproceduresandsternerbudgetaryoversight; gatheringsofmore than100peoplemustbeapprovedby relevantauthoritiesandevents lackingsubstantialcontentwill notbepermitted"anarticle reported.

The issue foranyNGOmeetinginChina is "What is themotivationbehind it?"AnysustainableNGO inChinamustprove to theGovernment that itsmotivation is salutary, notrevolutionary. Tocreate thisimpression it should focuson thefollowingareas:

• Government relations• Media profile• Legal structure• Institutional partner

GovernmentrelationsNGOscanoperatesmall projectssuccessfully in isolation inChina,but tobe impactful and 'scaleup'theywill have toco-optGovernmentassistancee.g. ifyouwant to train rural teachersyoumust first ask theGovernment forpermission tointervene incurricula (e.g. theOxfamcase last year). If youdonotwork inconjunctionwith theGovernment theywill simplycancel your visaorcutoff yourelectricity.

China develops in 'waves';infrastructure in the eighties;

special economic zones inthe nineties; and'internationalisation' in thenoughties. Thenextwavewill be'civil society'; to catch itNGOsmustunderstand theobjectivesof local officials. Forexample, ifyoubuildanorphanage inaprovincewhere thereare'officially' noorphansyouwill notstayopen for long. Conversely, ifyoucleanupariver inaprovincewhere the localgovernmenthasbeen taskedbyBeijing toimprove theenvironment, youmaywell bepaid for yourefforts.

MediaprofileOnceanNGOhasconvinced theGovernment that theyareherefor commendablepurposes theymustwork inconjunctionwiththemedia toestablishpubliccredibility. Todo this youmusthirestaff fromlocalmediawhoaresympathetic to yourcauseandpossess the rightconnections.Since theearthquakeandOlympics in2008, theGovernmenthaslooked forways to translatepositive volunteersentiment intoaprofessionalisedmediastrategywhereyourNGOcouldbepart of thepropagandaprocess.

LegalstructureCognizantof itsneed tocreatebalanceddevelopment, theGovernment is currentlydebatinganewCharityLawduetobe legislation in late2011/early 2012.Additionally,theGovernment’snew five-year-plan (2011-2015),will place

greateremphasisonsocialgoals forbothgovernmentofficialsandcorporations.ThereforeNGOsshould initiallyestablish themselvesas‘Consultancy’ companiesbecausemanyChinesearecurrentlyuncomfortableaboutworkingwithNGOsbut theywill'buy' social services fromaGovernmentdepartment.

InstitutionalpartnerWhilst operatingasaConsultancycompany,NGOsshouldalsowork inconjunctionwithanestablishedChineseinstitutionsuchasCheungKongorTsinghuaUniversity inorder todeliverprograms. When the lawbecomesclearerwith regard totaxbreaks,NGOsshould thenapply forGovernmentFoundationstatus. By this stageambivalence towardsNGOsandpublicgatheringsshouldhaveabatedand thepublicwill bemoreamenable towardscontributing towards theirgoals.

How to Thrive as an NGO in China

Clare Pearson, CSRManager at DLAPiper UKLLP in Beijing discusses the landscape and the politics ofrunning anNGO in China.

Once an NGO hasconvinced theGovernment thatthey are here forcommendablepurposes theymust work inconjunction withthe media toestablish publiccredibility.

Collaboration for Social Enterprises

Great social enterprises“collaborate”. Yetgreat chief executives

sometimes find that buildingallianceswith otherorganisations can befrustrating, awaste of time,or even counter-productive.

Growing social enterprises,boldly building allianceswhere no enterprise has gonebefore – with businesses,charities, the public sector,and other social enterprises:canny chief executives leadthis trek, and great boardscan help. Yet for many thistrek can lead to a wildernessof meetings and emptypromises that do not help thecause. The terms “public-private partnerships”, “bigsociety” and “corporate socialresponsibility” now seem toevoke as much cynicism ashope for productive alliances.

Miles Davis called jazz “socialmusic”. From what I haveseen around the world,effective social sector“collaboration” is more likejazz than symphony.Collaborations fail in thesocial sector because peopletreat them like Ludwig notMiles. In symphony there is ascore, set parts, few soloists,a tight schedule, familiartunes, and, most importantly,one person in charge - theconductor. Successfulcollaborations amongst socialenterprises rarely have aset-piece plan, fixed roles

and one person in charge.Some seize up over powerstruggles, in the way thatbusiness partners can fallout over money.

Jazz can make good musicwithout a set score, with partsevolving in real time, andleaders who are not alwayscontrolling. Twenty years ago,John Clarkeson, then thechief executive of the BostonConsulting Group, wrote in hisseminal piece “Jazz vs.Symphony” that the leaders ofcreative teams were muchmore like the leaders of jazzbands than conductors ofsymphony orchestras – theycreated the music from greatplayers, rather gettingmusicians to play greatmusic.

Effective collaborations in thesocial sector are creativeteams: great players broughttogether by common goals.For example, I’ve seen boardshelp by ensuring thatpartners share goals, andby building relationships.Scrutiny of the plan orstructure seems to yieldless fruit.

100,000 volunteers writeWikipedia, the fifth mostpopular site on the worldwideweb, supported by theWikimedia Foundation in theUS, Wikimedia Deutschland,Wikimedia UK and others.Oxfam has worked with M&S,Turning Point cooperates with

various parts of thegovernment, and AmnestyInternational has created anetwork of organisations fromaround the world.

In jazz sometimes leadershipis shared, and there is noobvious conductor. Some ofthe best global NGOs are, infact collaborations amongnational organisations, withno single global chiefexecutive who can call theshots. Consider MedécinsSans Frontières (MSF), agroup of legally independentnational organisations.Without a single, commandingglobal chief executive, themember organisations worktogether to deliver emergencymedical care to the toughestplaces in the world withinhours of a disaster.Collaboration is a means toan end, and not an unalloyedgood. MSF was accused byother NGOs of beinguncollaborative when itbroke ranks in January2005 and announced to theworld it was no longeraccepting donations to helpits efforts for victims of theAsian tsunami.

Some social enterprisesignore exhortations tocollaborate for “thecollective”. If a communitygroup works with one ofMichael Gove’s free schools,is that being collaborative,or being, in the wartimesense, a “collaborator”?

Successfulcollaborationamong socialenterprisesrarely have aset-piece plan,fixed roles andone person incharge.


Collaboration can be a goodway of growing a social enterprise. JonHuggett discusses effectivecollaborations and their similarities to jazz.

Closing Down your OrganisationACEVO network spring 2011 29

InSeptember 2010, I wroteto the boardwith aproposal for closure that

was agreed by all staff. Thedecision to closewas not easyfor a dedicated, passionateand naturally optimistic boardand it was not an easyproposal forme to havewritten in the knowledge thatit would result in the loss ofjobs for all staff.

ACEVO askedme to sharemy experience of planning forclosure and offer pointers toothers. Here aremy top threetips onmaking the toughestdecision possibleas a CEO.

Consider all scenariosAt Youth Action Network weuse scenario planning as a toolfor strategy at board level andit has proved to be essential inensuring that the organisationis prepared to cope withwhatever happens financiallyand otherwise. Don’t leavethings to chance and findyourself trying to plan ‘in themoment’. It’s better to have aplan you never use than not tohave a plan and find yourselfmaking snap and poorthought-through decisions.Don’t decide to close and notplan for it – it needs asmuchcareful consideration as a full-on change of direction or newarea of business. In a nutshell,don’t continue hoping for thebest and only considerclosure when it’s too late toclose carefully.

Be assertiveIt helps to be clear beforehandabout what your beneficiarieswill need when yourorganisation has gone. YouthAction Network is amembership organisation andtherefore concern for ourmembers and finding supportfor them going forward was apriority so we drew up a list oforganisations to approach.

When I started tohaveconversationswithCEOsoforganisationsonour list ofpotential partners, Iwaspleasantly surprisedat howkeen theywere todiscuss thepotential for collaboration. Itwouldhavebeeneasy tohavebeen influencedby theirpositivity.When talking topotential partners, I had list ofimportant criteria as itmeantthat I couldbeobjective ratherthanswayedbyan individual’scharm.Don’t underestimate thevalueof your resourcesandassets. Youmaybe facingclosurebut this doesnot in anywaydevaluewhat youhave.

Decide beforehand whatyou’re willing to compromiseon and what your non-negotiables are. Also, have agood idea of the kind oforganisation you are lookingfor. McKinsey’s Seven S(Structure, Systems, Style,Skills, Staff, Shared Valuesand Strategy) Model is a goodtool to use when looking atorganisations to partner ormerge with.

Stay positiveAnd make sure the teamhave something positive todo too. Closure means thateveryone will lose their job(unless of course you’veagreed to hand over staff aswell as resources to anotherorganisation) and that meansthat you will have to face asituation where peoplecould lose their momentum,motivation and interest intheir work. “What’s thepoint?” they could beforgiven for feeling. We’vefound that our YouthQuakeproject has given us focusand a goal that continues toinspire us every day.

Of course, I sometimeswonderwhether the closure is the resultof something I did or didn’t doasCEO. Iwonder if it’smy fault;whether someoneelsewouldhavesecured the fundingthat I haven’t.However, I alsohavemomentswhen I realisethat I havebehavedwithopennessand transparency;that I’ve supported theboard tomakegooddecisionsand I’vebrought the teamwithmeeverystepof theway.

If your organisation is facingclosure, and you needsupport access freehelplines covering legal,accounting and HR lawissues. Log in to themembership area of thewebsite www.acevo.org.ukor call the membership teamon 020 7280 4960 for details.

Don’t leavethings tochance and findyourself tryingto plan ‘in themoment’. It’sbetter to have aplan you neveruse than not tohave a plan andfind yourselfmaking snapand poorthought-throughdecisions.

Organisational closures have become a sad reality formany. Davina Goodchild, CEO of Youth ActionNetworkkindly shares her story on closing downher organisation.

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Community OutsourcingACEVO network spring 2011 31

Thingshaveneverbeensouncertain for thevoluntarysector.

Voluntaryandcommunityorganisationsarefacingunprecedentedlevelsof localauthority fundingcutsandthisiscombinedwith fiercecompetition fromthe ‘bigboys’ofoutsourcing.Smallcharitieswillbegoingheadtoheadwithlargeprivatesector firmstodeliverpublicservices.Dotheystandachance?

Theanswer is yes, on twoconditions.Firstly, thesectormustgetbetterat combiningforces, presentingcouncilsandcompanieswithstrong, focusedconsortia. Secondly, charitiesmustexploreawide rangeofincomestreams–making themostof their existingnetworksandskills.

One such revenue sourcecould be community outreachcampaigns. If local authoritiesor businesses want to targethard-to-reach groups then thevoluntary and communitysector holds the key. This couldbe an important newway togenerate income, boosting acharity’s skills base and profilealong the way.

For two years DigitalOutreach has been harnessingthe reach of local charities andvoluntary organisations to helpolder and disabled people withthe switch to digital TV. So farwe’ve reached 600,000 sociallyisolated people, helping themto understand how to switchtheir TV as part of theSwitchover Help Scheme and

the Digital SwitchoverCommunity OutreachProgramme.

Evidence shows that olderand disabled people aremoreresponsive tomessagescommunicated via trustedcommunity networks – bymeals on wheels staff or atover 60s lunch clubs - thantraditional communicationmethods such as TV ads ormailings.

There is no way DigitalOutreach could have had suchan impact without workingwith over 300 charities acrossthe UK. Staff and volunteerswere trained to help their ownservice-users understanddigital TV switchover. In returnvoluntary organisationsreceived grants, new skills andan increased profile whichoften led to new clients andadditional contracts.

Margaret Hanson, ChiefOfficer at Age Concern NorthEastWales explains thebenefits of being involved inthe switchover work:“Workingon such a high profilecampaign has reinforced ourreputation and standingamongst other organisations.It has also increased thenumber of clients we have. Weare now putting in a bid forfunding from the digitalinclusion fund, and we are surethat our involvement withswitchover will help us besuccessful.”

So faralmost£250,000 ingrantshasbeen invested inpayingcharites tocascade

information to targetgroupsandDigitalOutreachhasdelivered900 trainingsessionswithcharitiesandcommunitygroups,inaddition towhatwe’vespentoncommissioningservices fromthesector.

Thismodel has beenrecognised by cultureministerEd Vaizey who noted that itcould be amodel for othermajor public change projectssuch as digital inclusion andsmartmetering. Thegovernment’s National Planfor Digital Participation alsorecognised Digital Outreach’smodel as effective in boostingdigital inclusion.

We are now in talks withpublic health organisations,social marketing companiesand private firms about howour community outreachmodel could work with non-digital campaigns, helpingthem to reach thousands ofpeople.

Digital Outreach will startworking with charities todevelop a voluntary sectorbidding consortium, which willtender for public sectorcontracts on their behalf. We’llprovide bid writing expertise,delivery infrastructure,management capability,quality assurance systems andstart-up cash flow, so charitiescan successfully win bids.

Theoutlook for charitiesmightbeuncertain, but inmanyways,thingshaveneverbeenmoreexciting.Findoutmoreatwww.digitaloutreach.org.uk

There is no wayDigital Outreachcould have hadsuch an impactwithout workingwith over 300charities acrossthe UK.

Ian Agnew fromDigital Outreach on how third sector organisations can boost their chances of successamid the spending cuts.

Donations fromaDragonCover Story32 ACEVO network spring 2011

Tell us about yourjourney as aphilanthropist. How did

it start? What inspired you togive a major donation for thefirst time? Has this originalinspiration or your prioritieschanged?

The James Caan Foundation(JCF) began four years ago,when I sold my company, anddecided to spend much moreof my time on issues outsideof business.Education is a fundamentaltheme which has guided methrough life. My father wasilliterate, and I myself leftschool without aqualification. Regardless ofmy success, an education issomething that I alwayswanted, and when theopportunity arose I sold mybusiness and enrolled at theHarvard Business School atthe ripe old age of 42. Havingbeen in recruitment for manyyears, I saw the value ofsomeone’s education andhow it added an additionalfacet to their package. Moreimportantly, I saw how aneducation could make adifference in what people putback into society. Of course,there are many stories ofpeople who have achievedsuccess without going toschool, but the journey ismuch harder and thedisciplines learnt in aneducational institution areunique.Entrepreneurship and equal

opportunities are other areasin which I am greatlyconcerned. Initiatives like thePrince's Trust and VInspiredare platforms from which onecan make a difference toyoung people in the UK - be itinspiring and motivating tovolunteer or usingentrepreneurship as a way inwhich to support someoneout of hardship. There arealso a large number ofcharities which I endorse andprovide strategic guidance to,combining my commercialknow-how with myphilanthropic aims.

I am a philanthropist becauseI believe I can make adifference to people. I takethe attitude that even if I helpjust one child receive aneducation, one person get off

the street and housed or oneperson gain employment, Ihave made a difference, andthat guiding philosophy willnever change.

Many philanthropists have amission when they aredonating or a ‘theory ofchange’. What do you hopeto achieve when you aregiving a major donation?What constitutes asuccessful donation to you?

I donate on the ethos of “ahand up not a hand out”.Every donation I give has aROI – I am a businessman,and when I donate, I see it asan investment into a cause. IfI am building a village, thefocus is on how many peoplecan receive shelter andadditionally, how that shelter

can help them help themselves– it may be immeasurable interms of giving someoneconfidence, or measurable interms of the skills provided inthat activity. I don’t believe inchequebook philanthropy – Iam fortunate enough to havethe time and resources toresearch the causes in whichI support. For example, if I dogive to a charity, more oftenthan not, I would have seen,for myself, the work that theydo and the difference theymake.

Some philanthropists willonly give to charities undercertain strict criteria - is thisthe same for you? If so, whatcriteria do you have?

My criteria is simple –transparency, credibility, and

‘Philanthropy’ literally means the ‘love of mankind’ but what does it mean to one of the UK’s wealthiestbusinessmen and major donor? Dragon James Caan shows his softer side and talks about his approachto philanthropy and how he likes to invest in charities.


impact. I need to know wheremy money is going; who’struly benefiting from it; howcredible the organisation isand the impact my donationwill have on beneficiaries. Onoccasions, I am keen simplyto donate my time and so acash donation isn’t the focus,it may simply be aboutsupporting an organisation togrow through sharing mytime and expertise.Philanthropy isn’t just aboutdonating money it’s alsoabout making a difference bysharing your time and,knowledge with anorganisation. For example,I‘m Chairman of the BigIssue, primarily because ofthe business acumen I canshare with the board toenable the organisation tobecome more commercial so

that we can help morepeople. I am also lookingforward to working withDavid Fielding and his teamat Attenti to help themincrease their reach andimpact within the sector,I think Attenti's strategicrecruitment partnershipwith ACEVO will providesignificant benefitsall round.

Howmuch do you usuallydonate to each project?

It depends from project toproject – I ask myself, howmuch is needed? Where can Iadd the most value? Is itmoney, time, networks, orcontacts? Can my resourceshelp an organisation raisemore money than if I simplywrote a cheque myself?

What is the best way forcharities to engage you?What makes you give tocertain causes?

Every cause is valid, andcharities are worthwhileorganisations. But beingcharitable is personal. Yougive because you believe in it,not because you feel you haveto. If I believe in something,I will usually create theprogramme myself andidentify the best partners towork with. Very rarely will Ijust write a cheque to acharity that has approachedme – I have a foundationwhich has an infrastructurethat manages requests andevaluates opportunities, butmore often than not, we finda cause and create theprogramme ourselves.

I ask myself,howmuch isneeded?Wherecan I add themost value?Is it money,time, networks,or contacts?


There are many types ofphilanthropists e.g. theengaged philanthropist(very involved); the patientphilanthropist (happy towait for results to takeplace); the passivephilanthropist (behind thescenes, quiet role); and theventure philanthropist(determined to see a returnon their investment). Whatsort of philanthropist wouldyou say you are?

An Engaged Philanthropist –I have to be involved at everylevel. From identifying theissue, coming up with thesolution, and seeing theproject through. It’s thepeople who inspire me. LastOctober, when the floodsdevastated parts ofPakistan, I knew I had to dosomething. I flew out inOctober and met with a manwho was the village elder ofJan Lunda, he had lost hisdaughter and niece to thefloods. Even though wecouldn’t speak the samelanguage, we bonded onsuch a deep level, I feltcompelled to help him. Had Inot gone out myself to visitthe villages, I wouldn’t havehad the opportunity to put aface to the village, and beable to really experience thedevastation and heartacheengulfing it. Every eightweeks since, I go back toJan Lunda to see theprogress first hand, eventhough I have people thereevery other week feedingback on what’s going on.

Major donors often havevery little understanding ofhow charities operate.Issues such as a charity’score costs can come as ashock. What are yourfeelings towards a charity'score costs?

I understand that to run asuccessful charity where

you can have a great impact,you need to invest in yourinfrastructure. UNICEF is agreat example – they carryout programmes where theyvaccinate millions ofchildren in Africa in oneweek – the logistics of thatoperation is enormous andunless you have thestructure and process inplace, you simply cannotreach that number ofbeneficiaries. My foundationis fully subsidised by mepersonally, so I can ensurethat everyone who donatesthrough the JCF can becertain that it goes to thepeople in the village whoreally need it. It operates outof my main commercialoffices, as an entirelyseparate entity. This helpskeep any extra costs as lowas possible. This also helpsensure that 100% of

donations go to the village,and not in overhead costs.

There have been newsstories relating to businessand the private sectorstepping in and fundingprojects that will no longerbe provided by the state. Doyou think that philanthropycan ever replace statefunding?

Yes, definitely. The verywealthy have hundreds ofbillions to pool together. Ifthat sounds like a lot ofmoney - it’s because it is!Look at The Bill and MelindaGates Foundation. Itsendowment is larger thanthe GDP of severalcountries. If used efficiently,and everyone, from thesuper-rich to the moremodest, do their bit, then itcan certainly happen.

I understandthat to run asuccessfulcharity whereyou can have agreat impact,you need toinvest in yourinfrastructure.


Cover Story

Thefinancialclimate forcivil societyorganisations(CSOs) is thesamefor

everyone–thebanksaren’tlending.Either finance isn’tavailableorbanksaren’table tolendtheamounts theyusedto.

Notonly is there lessmoneyonoffer, but criteriahavechangedsoevenpeoplewithexisting relationshipswithalendingmanagerwill find thatthegoalpostshavemoved.

Tosuccessfully loan financethe futureof yourorganisation,getback tobasicsandmakesureyourapplicationisasbestitcanbe.

First –check thecriteriaofwhatever fundorproduct you’reapplying for. It’s stating theobviousyes, but I can’t evenbegin toestimate thevaluabletimeandenergy I’veseenorganisationswastebyeithermisreading (ornot reading) therules, orby thinking they’d just‘takeapunt’witha lenderwhoclearly stated theyweren’tinterested in their kindofproject.

Next, theCAMPARI lendingprinciplesareworthconsideringasameansofensuringyourapplicationwill coveroff all theelementsa lenderwill be lookingfor. Theyhavebeenaround formanyyearsbut theyareagoodguide to thebasicsandwitha few“tweaks” they fitCSOsverywell.Beclearabout:· Thecharacterof your

project(andyouasacustomer)· Theamount youwant to

borrow· Themargin you’llmake in

yourbusiness–and themargin (i.e. interest) youcan

affordona loan· Thepurposeof the loan· Yourability to repay it· The repaymentschedule

andamounts· The insurance (or security)

youcanoffer to your lender(if you’reapproachingasocial lenderoutline yourproject’s impact too.)If it’s your first timeapplying

fora loanyou’ll need tohaveawatertightbusinessplanbeforea lenderwill consider you. If yougo toasocial lender theymightoffer support inhelpingyougetthatkindofplanningandpaperworksorted–butahighstreetbankwon’t offer thatkindofhelp. Thinkaboutwhatbusinesssupport youcanget(cheapor for free)beforeyousubmit yourapplication thatwillhelp yousecure investment–therearesectorspecific expertswhocanhelp you.Professionallookingcash flow forecastswillimpress thepersonassessingyourapplication.Ashort, sharpbusinessplanwithshortwordsandshort sentenceswillmakethemloveyou!

Aswell as thinkingabout theexternalpeople you’ll need toimpress, don’t forget yourinternal stakeholders too. Yourtrusteesneed tobeasconvincedof yourability to takeon loanfinanceasyour lender.Andtrusteescanberiskaverse–unwilling tooffer thevalueofassets likebuildingsassecurityinanydeal –whichcanhold youback.

Finally, thinkabout yourorganisation’s currentand future

needsand try todovetail thosefundingneeds together.Similarly, look forprojects youcanpackage together tosell asone toa funder. I knowofagreatcommunitygroupwhosehomeisa fantastic (butexpensive)grade2 listedbuilding. Theygotfunding tospruceup theoutsideback to its formerglorybutwhenyougo insideyousee that therefurbishment finishedat thedoor.Nowthey’ve realised theyneed tomakestatutory changesindoors– tomeethealthandsafetyandchildprotection rules–buthaven’t got themoney todoit. Finding finance for fireexitsandsafetydoors isgoing tobealotharder than if they’dwrappedup that cost with the moreglamourous project ofrestoring their frontage. Andlenders are no different togrant givers in that they gettired of repeated requests – itmakes your organisationappear short sighted.

Most of all, as we all dealwithmore difficult economictimes, it’s important thatcharities, social enterprisesand voluntary organisationslook tomaximise all thefundraising opportunitiesavailable to themwhetherthat’s gift aid, membership,grants or loans. Even if you’venever tried it before, with theright preparation and planningyour organisation could reallybenefit from loan financing.

Sueoverseesthreemajorgrantandloanmakingfunds.Visitthesocialinvestmentbusiness.org

Whatmakes a successful loan application? Sue Peters,ManagingDirector of Investments at The SocialInvestment Business revealswhich applications secure funding.

As well asthinking aboutthe externalpeople you’llneed to impress,don’t forgetyour internalstakeholderstoo.

LoanFinancingyourFuture


Cover Story

Theworld economy hasslowly emerged fromarecession so deep it

brought fears of deflation,persistent falling prices asexcess existing capacity andnewmarket entrants fromemergingmarkets competedfor reduced levels of demand.

Economic recovery is nowunderway but inmostcountries a legacy of therecession has been thatupward pressure on prices hasremainedmodest and inflationhas remained low. Theexception is the UK. In thedomestic economy inflationhas been a nagging problem,staying well above the Bank ofEngland’s 2% target, averagingat almost 3%. The RPI,arguably a bettermeasure ofthe day to day inflationarypressures faced bymostcharities, has risen faster,sitting consistently above 4%.

For charities, theinvestment environment ischallenging in a number ofareas. A period of above targetinflation and low cash ratesmeans the sector’s structuralhigh cash weighting will besubject to value erosion for theforeseeable future. Cash is notthe only concern, bonds too arean issue. Persistent inflationthreatens the real value of boththe income receipts over timeand the capital repayment,which could be several years inthe future. Of course thesechallenging problems areoccurring when pressures on

income flows are intense andwhen the demand on sectorresources have increased andare expected to remainelevated for some time.

The Bank of Englandacknowledges inflation willremain above target for sometime to come, indeed it couldrise above current levels as theeffects of higher VAT and fuelcosts are reflected in the index.A rate above 4%, asmeasuredby the CPI, is quite within therange of possibilities in thenear future.

The standard policyresponse to an inflationproblem is to increase interestrates but this, on a significantscale, is not a realisticprospect in the UK. Growth isdesperately needed to reducethe budget deficit but therecovery is frail and will facefresh headwinds from publicsector spending cuts which areexpected to reduce output byan amount equivalent to 0.5%of GDP per annum. A level ofinflation would actually behelpful to the government,helping to wash away some ofthe excess debt built up in thecredit boom.

It is not just the charitysector which is under difficultpressures. For the consumertoo, the picture is unattractive.Disposable income across theboard is being reduced by taxincreases and benefit cuts,inflation, insufficientlycompensated by wage rises,onlymakes the position worse.UK consumers remain very

heavily indebted – averagemortgage sizes have doubledover the past decade – and sofalling borrowing costs havebeen an important support tospending power. If risinginterest ratesmeant that thistrend were to reverse, therewould be a negative effect onoverall spending power. This isvery important becauseconsumer related activitygenerates some 70% ofeconomic output.

So how does the charitysector protect its investmentportfolios in these difficulttimes? The key is assetallocation; it is assetallocation rather than factorslike stock selection or markettiming which determines thevast bulk of investmentreturns. To find long termprotection portfolios there isa need to look to those assetswhich can provide a risingincome and growing capitalvalues, such as equities, athome and overseas, andproperty but this meansexposure to valuefluctuations which may notbe acceptable. Mostimportantly, the investmentstrategy must reflect therequirements of the charityand the circumstances of thetime, if trustees have anydoubts then they should seekadvice from their investmentmanager.

CCLA are one of ACEVO’sstrategic partners. Visitwww.ccla.co.uk

JohnKelly, Head of Client Investment at CCLA highlightswhat thecurrent economic climate couldmean for third sector organisationswith investments.

A level of inflationwould actuallybe helpful to thegovernment,helping to washaway some of theexcess debt builtup in the creditboom.

Inflation: here today, here tomorrow?

Cover StoryACEVO network spring 2011 37

Cashandtheaccountsreflect thedailyactivitiesofyourcharity.Paying

staff tosupport clients,holdingfundraisingevents that reachandengage therightdonorsormeasuringandreportingoutcomes togovernment formtherealactivity reflected inthecash.

Running lowoncash limitsoptionsandcan lead topoordecisions that focusonmaximising short termcashaboveanythingelse; it becomestheall-consumingkey issuerather than theproduct, serviceor thedelivery of outcomes tobeneficiaries. Theway yourcharity goesabout its purpose isthekey togoodmoneymanagement.

Moneymanagement for theCEOthereforebeginswith settingclear priorities andunderstanding the implicationsof thosepriorities – setting thestrategy andguidingimplementation. In adownturn,more thanever, thewhole teamneeds tounderstandwhat thepriorities areand theimplicationsof their decisionsoncash flow.

TheCEO’srole inmoneymanagementNow is a vital time to workeffectively with your SeniorManagement Team (SMT) as aunit. Many CEOs aremakingmore time in their ‘crazyschedule’ to increase thedialogue with their SMT,

getting closer to key activitiesand helpingmake the bestpossible strategic decisions.

Understand theprofileandcashdriversTakeonecharitywhere cash ismostly raised fromdonorsandcosts are slow toadjust. TheCEOsits downmoreoftenwiththeHeadofFundraisingandFDtounderstand theoutlook forthe future together. TheCEOknows that if theyunderstandthe future incomeprofile, theycanprovideearly support orencourage theHeadofFundraising to adjust direction.If oneareaof fundraising isstruggling, they commit to findthe real reasonswhyand testoptionsearly. If theoutlook isvery strong thencharitableactivity canbe increased.

In another charity, contractoutcomesare vital. TheCEOtherefore focusesmoreonsetting, agreeing, tracking,recordingandpresentingsuccessful outcomes; earlyvisibility unlocks cash revenue.Asa leaderdo youknowwhatyour cashdrivers are?

Does financereallyhelpdecision-making?Financeshouldhelp supportdecisionsand, inmy view this isgenerally neglected comparedto timespent oncontrols,statutory requirements andtreasurymanagement. TheCEOshouldaskwhether informationfrom financehelps themassessthe implicationsof decisions. In

adownturn it’s tempting to cutbackonactivity that canbereducedsuchas investment infundraising, donormanagementormaintenanceandcapitalexpenditure. Financeshouldmakeassumptionsabout thepossible speedwithwhichincomewould tail off ifinvestmentwascut. If nothingelse, theSMTcould lookout forsignswhere cutswerecounterproductive. Itmaybebetter to stopdoingsome thingscompletely than reduceinvestment in every programme.Inmyexperience, focusonevidencing the real drivers ofoutcomesneeds to increase.

Does itmake the boatgo faster?I recall one of the Olympicrowing teams applying asimple question to all activity –Does it make the boat gofaster? They applied it to alltheir activities, attitudes anddecision-making. Asking thequestionmade the answerobvious. It also enabledexperiments: If we change theboat shape will it make theboat go faster? They assessedthe net benefits of options andbehaviours - weighing upfinancial and opportunity cost,probability of advantage andreward - challenging theirtraditional approach. In adownturn, the CEO needs tofocus on the purpose and goalof the organisation. They canuse the way activity is reflectedin cash to help assess and tuneimplementation.

HughBiddell, Head of Charities and Public Sector at RBS offers adviceon how tomanage your organisation’s cash effectively in today’s bleak economic climate.

...the SMT couldlook out for signswhere cuts werecounter-productive.It may be better tostop doing somethings completelythan reduceinvestment inevery programme.

Does it make the Boat go Faster?


Employee Engagement is Essential

Forall the white noisearound the Big Society,there is no doubt that

the third sector stands onthe brink of somemomentous changes - andchallenges.

The huge goal of playing apermanent and fundamentalrole in the renewal of civilsociety seems within ourreach. But to seize theseopportunities, it is moreimportant than ever that theorganisations in the sector,big and small, get the bestout of their staff.

It may seem churlish toremind the sector that itsrecord as an employer ispatchy – or heresy to suggestthat theremay be an employeeengagement deficit. Surely bydefinition organisations in thethird sector havemotivatedand committed employees,willing to go the extramile forsomething they believe in?

When David Macleod and Iwrote our government-commissioned reportEngaging for Success in2009, we highlighted someoutstanding examples ofemployee engagement in thesector, where excellentmanagement and leadershipwere motivating anddeveloping staff to deliveramazing outcomes for thecommunities they workedwith and for, at home andabroad. But we also heard ofother examples where poormanagement and an absenceof employee engagement

strategies were leading towasted effort, to dissatisfiedand demoralised staff, tohigh staff sickness absencerates to high staff turnover –all indicators of anorganisation, public, privateor third sector, that staff aredisengaged. Thesechallenges were resulting inhigh levels of grievances inthe sector, and adisproportionately highnumber of cases going toindustrial tribunal.In case anyone thinks thatthe recession has made staffmore engaged, think again.The message from theCharity Pulse Survey byBirdsong in 2010 could nothave been starker –engagement in the sector isat risk. Fewer staff than inprevious years felt engaged,they reported less pride intheir work, and were lesslikely to recommend theirorganisation as a place towork. The effect ofredundancies and of cuts intraining and developmentbudgets on morale was clear,with small charity stafffeeling particularlyvulnerable. Most seriously,increasing numbers of staffreported that they wanted toleave their employer; thesestaff cited the lack of use oftheir skills, feelingunappreciated, and notlistened to. No wonder thesurvey organisers warnedthat charities were in dangerof losing their best staff.

The danger at the moment isthat many third sector CEOsare focused on dealing withthe consequences ofrenegotiated or cancelledcontracts, cuts in grants, andan uncertain policy andpolitical environment. Giventhe uncertainty, investing inthe workforce now will seemlike a luxury few can afford.Restructures and head countreduction are more the orderof the day.

But the sector will notmeet the opportunitiescoming down the line withoutengaging employees. Anengaged workforce is ahigher performing workforce.Engaged employees want toinnovate, to work together, togo the extra mile, to deliverthat special outcome.

And it’s a bottom lineissue too. A study by TowersPerrin of over 664,000employees found that those

Nita Clarke, Director of IPA on why third sector leaders to need to place employee engagementhigher up on their agenda.


companies with a highlyengaged workforce improvedoperating income by 19.2%over a 12 month period; thosewith low engagement scoressaw their operating incomedecline by 32.7 % over thesame period. There are alsostrong correlations betweencustomer/user satisfactionand employee engagement.The CIPD found that 70% ofengaged employees said theyhave a good understanding ofhow to meet customer needs;only 17 % of non-engagedemployees said the same.

Plenty of research pointsto the relationship betweenengagement and innovation.Employees who are informedof the challenges facing theorganisation, who areempowered to deliverchange, who feel valued andlistened to by managers, willbe able and willing to givetheir best ideas to theirorganisation. Staff workingon the front line withcustomers and service usersare often best placed tounderstand their needs andhow services must change tomeet them. Too often, theyare simply not asked.

So if we accept thatengagement is important tothe third sector’s survivaland recovery, then what is tobe done, particularly wherethere aren’t budgets forconsultants, schemes andexternal employee surveys?As one ACEVO chief executivepithily put it: ‘…it’s the

people, stupid. For our sectorabove all, our staff are ourgreatest asset. But they areso much more besides: theyare our brand, our front-line,our ambassadors, our fund-raisers, our back office andour strategy all rolled intoone. We’ve got to treat themas such.’

To start with, CEOs shouldask themselves thefollowing questions:

• Do your staff know andunderstand thechallenges facing theorganisation? Do theyunderstand what theorganisation is doing tomeet them? This strategicnarrative is crucial,because it answers thekey questions: How doeswhat I’m doing fit in? Whydoes what I’m doingmatter? How does itcontribute to the biggerpicture?

• Are your line managerscapable of coaching,supporting, and givingfeedback to employees tohelp them achieve what isrequired of them? Do theyensure the work is wellorganised, that obstaclesto individual or teamperformancearedealtwith?

• Do you listen to youremployees – not justcommunicate with them?

• Do staff have a voice anddo they feel listened to?

• Where you have trade

unions, or staffcouncils/representatives,are they part of yourengagement architecture,partners in the success ofthe organisation, or just anuisance you have aslittle to do with as possible?

• In spite of the changes toyour organisation, areyour employees confidentthat you and theorganisation are actingwith integrity? Are youractions, particularlythose of the leadership, inline with the values andethos of the organisation?

If the answer to any of these is‘no’, then you need to takeaction. The IPA is working withACEVO to raise the importanceof employee engagement onthe third sector leader’sagenda. Wewould like to see asupport andmutual learningnetwork set up, bringingtogether organisations thatachieve positive employeeengagement with those thatfind it a challenge. We arehappy to provide practicaladvice and guidance fororganisations whowant toensure that employeeengagement is not theirAchilles ’ heel – but aguarantor of success.

[email protected] you are interested infinding out more.

www.ipa-involve.com

...thosecompanieswithahighlyengagedworkforceimprovedoperatingincomeby19.2%overa12monthperiod...

So if we accept that engagement is important to the third sector’survival and recovery, then what is to be done, particularly where there

aren’t budgets for consultants, schemes and external employee surveys?

Is yourOrganisationReady forPensionReform?

Formany yearswe haveproduced a survey ofbenefits across ACEVO’s

members but for 2010, withpension reform looming, wefocused purely on pensionbenefits and pension reform.Youwill find below the keyfindings and associatedcomments, but before lookingat the results let’s remindourselves of themainingredients of PensionReform.

FromOctober 2012 allemployers, will be required toauto enrol their staff into eitherthe National EmploymentSavings Trust scheme (NEST)or an alternative pensionarrangement. Both employersand employees will be requiredto contribute and theminimumemployer contributionmust beat least 3% after threemonthsservice. The Pensions Actallows for the introduction ofauto enrolment to be stagedover a four year periodcommencing on 01 October2012 with the largestemployers first.

Nearly every pension schemein the country will need to beamended in some way orother. For some, the existingscheme won’t be fit forpurpose; other schemes won’tbe capable of auto enrolment;many may find that they can’tcontinue with their currentcontribution levels if they hadamuch higher take up orsomemight just need to

amend the date thatemployees become eligible tojoin. Whether you have apension scheme or not, now isthe time to be reviewing whatyou offer (or plan to offer) as ittakes time to review andconsult with your employeesover any desired changes.

Key findings in theACEVOPensionsSurvey 2010

79% of the charities surveyedindicated that they offer someform of employee pensionarrangement. However takeup rates varymassively fromvery low to over 90%.Almost one quarter (24%) ofthose questioned wereunaware of what the NationalEmployment Savings Trustpension scheme is.Only 35% of charitiesemploying 1-9members ofstaff have assessed theirapproach, despite the reformrequiring organisations of allsizes to enrol everymemberof staff into the scheme.

Only half of charitiesemploying 500-999membersof staff currently offer apension scheme. The cost ofauto enrolment could be asmuch as £300,000 per yearfor charities employing 500members of staff on anaverage salary of £20,000per annum.

The survey also highlightsthat average employee

contributions have fallen from5 to 4% over the last year.This represents a 20%decrease in charityemployees saving into apension scheme. When weasked respondents whatproportion of their staff are ontarget to retire on half of theirincome, only 3% believed thiswas the case.

The worrying trend is thatemployee pensioncontributions are falling andemployers are also underpressure to review theircontribution levels in light ofausterity measures and theprospect of much higherpension takes up through autoenrolment. One further blowto the finances is theincreases in nationalinsurance contributionsfor both employers andemployees from April 2011.Many employers have or areconsidering offering staffsalary sacrifice as a way ofincreasing employeepension contributions byas much as 30% at no costto either the employee orthe employer.

If youwould like to receivea copy of the survey orattend a free seminar onPension Reformor how toadd salary sacrifice to anexisting pensionarrangement thenplease [email protected] register your interest.

Ian Bird frompensions specialist Foster Denovo asks some crucial questions about your organisation’spensions arrangement.

Nearly everypension schemein the countrywill need to beamended insome way orother.



Closing the Perception Gap

Intheautumnof2009,AlbinaGuarnieriMPintroducedBillC-470: ‘AnAct toAmendthe

IncomeTaxAct’, in theCanadianHouseofCommons. Itssignatureproposalwasa$250,000(or£156,000)caponcompensationpaid toemployeesofcharitiesorfoundations.Todate, it isprobably themostseriousattempt tocurbexecutivesalaries in thevoluntarysectoranywhere.

InGuarnieri’smindcharitywasbeingabused.Thesectorwasimpenetrableand,hidden fromnormalstandardsof scrutiny,hadbecomecorruptandwasteful. Toher it seems,goodvoluntaryorganisationswillalwayshave lowoverheads–theyarenotandshouldnotbetrying to rival theprivatesector.And likesomanyothers, shepointed to traditional fundraising-whichwas flatlining -andtraditional causes, rather thanpublic servicecontractsorcommissioning.

ByAugust2010 thebill hadsurvivedsecondreadingandappeared tobewinging itsway tosuccessfulpassage. ImagineCanada(www.imaginecanada.ca), aleadingnetworkofCanadianthirdsectororganisations,launchedamajorcounter-attack. Inmessages toPrimeMinisterStephenHarper, aswellas the leadersofeachParliamentaryparty, ImagineCanada laidout their fears forthesector’s future.Marcel

Lauziere,Presidentof ImagineCanada, said themovewould‘severely impact theautonomyofvoluntaryboardsacross thecountry’.

Other voluntarygroupsacrossCanada-andumbrellabodiessuchas theAssociationofFundraisingProfessionals -rallied to resist thebill. ThewebsiteNoToBillC470went liveandmore than40charity leadersco-signed ImagineCanadachairDonMcCreesh’s letter to thePrimeMinister.As theypointedout, themovewas inconsistentwithCanada’sefforts togrow itsscienceand technologybase–where ‘themost soughtafterresearchers in theworld’ arebeing tapped.Whatwasapparently obvious for researchwasdismissed for the thirdsectoras inCanadamosthighereducation institutionsarecharities.

Finally, aftermonthsofcampaigning, theparliament’sfinancecommitteeguttedanycompensationcap fromthelegislation.Canada’s charitieswill nownot facede-registrationif anexecutiveearns inexcessof$250,000.

Guarniei’sproposalswerebroader than just thesalary cap.Themeasuresalsosought tobolsteraccountability andtransparencymechanisms,includingaskingexecutives todisclosesalaries, and theseproposals remain in thebill.

ImagineCanada, alongwithothersector representativeshave longbeencampaigning forthesector inCanada todevelop

itsownprogrammes forimprovingaccountability andtransparency. ImagineCanada iscurrently leadingonaprogrammetodevelopastandards framework for thesector, by thesector.

Thirdsector leaders inBritainandEuropemayworrythat currentpublic feelingonexecutivesalariesandexpenses,acrossall sectors, couldevolveintoasimilarkindofwage-cappingdrive.

Persuadingpoliticiansor thepublic that voluntarygroupsneed flexiblecompensation isnotalwayseasy - thebenefitsareless tangibleand immediatethan front-linework.Butasweknow,withoutattracting topleadership talent thesectorwouldnot serve itsbeneficiariessowell. This iswhy it’s soimportant toclose theperceptiongap.The thirdsectorisnotasmall clubofamateurcharities, overseenby fat-catexecutives. It is aprofessionally-led, professionally-governed,modern, enterprisingandgrowingsphere–anddeservestoberecognisedassuch.

TheImpACTCoalitionexists tosupport thesector in improvingaccountability, clarityandtransparency inhoworganisationsoperate.ACEVOandthe ImpACTCoalitionhaveproducedaguidefor thirdsector leadersonhowtorespondwhenaskedabouttheirpay.Download it fromtheACEVOwebsitewww.acevo.org.uk/icresources

Third sectorleaders inBritain andEurope mayworry thatcurrent publicfeeling onexecutivesalaries andexpenses,across allsectors, couldevolve into asimilar kind ofwage-cappingdrive.

What does the public think third sector organisations do and what do they think our CEOs should bepaid? James Huckle highlights what happened in Canada when similar questions were asked.


Time Out NumberCrunchStats from the thirdsector in the lastquarter.

£400mTheextra amountpledged bygovernment tomentalhealth provision.Source: Health andSocial Care Journal

£8mTheamount cut toCharity Commission’sstatutory income.Source: Third Sector

£26mThetotalgrantspackagedistributedbyLondonCouncils tocharitiesandcommunitygroupsacrossthecapital.Source:GuardianCutsBlog

80Thepercentage ofthe Big Lottery Fundbeneficiaries in the lastthree years thatweresmall charities.Source: VoluntarySector Network

151TheUKNet debt as apercentage of GDP(including financialinterventions) in 2010versus 34.8% in 1993.Source: ONS

Online BuzzFrommembers on

Governance“MyBoardand I (asCEO)havedecided thatourmemberswouldbebetter servedbyhavingmeasa full voting (andremunerated)trustee.Whatarguments for thiswill theCCommissionaccept?”

ProfessionalDevelopment“AspiringCEO looking foradvice...Aclientofmineworking inan internationalNGO inaheadofUKMarketing role isaiming tobecomeaCEOofasmall charity.Theyhave receivedconflictingadviceonwhether this isa leap thatcanbe taken inonegoor requiresan interimstep. I'd love tobeabletopassonyourstoriesofmoving intoaCEOrole for the first time.What roledid you leave tobecomeCEO?Whatdid yourealise youalreadywerecapableof?Whatskillsdid youwishyouhadacquiredfirst?And if anyof youwouldbehappy togiveadvicedirectly, letmeknowand I'll put you in touch.”

Volunteerwithbackground in financialservices“Anexperienced individualwithabackground in investmentbankingis looking forpart-timevoluntarywork. Theyarewilling towork2-3daysaweekwith flexibility onworking fromhome. If youcoulduseavolunteer like this, pleaseprovidedetailsof yourorgand the typeofproject you'd like themtoworkon.”

FromACEVO on

DeborahAlsinaDeborahAlsinaLike thisa lot: “@ACEVO:"I suppose leadershipatone timemeantmuscles;but today itmeansgettingalongwithpeople."MohandasGandhi”

FoyerFederationFoyerFederationJanewent to@ACEVOmeetingyesterdaywithCLGofficialsRELocalisationBill 'Right toBuy' and 'Right toChallenge'.

PeterWatt123PeterWattRT@ACEVOTheKingsFundhasannounced therewill bea£1.2billsocial care fundinggapwithin4 years:http://bit.ly/fT5BjR

BWCause4BenWilson@ACEVOExcellentblogby yourCEOondiversifying funding forSocialEnterprises. Very interesting readhttp://tinyurl.com/6235ps7

Mattgriff1968MattGriffithsRT@ACEVOTenways to ‘tapyour teams intelligence’ :http://bit.ly/hrZW3A>this isuseful stuffnfpsm:Pleased towelcome@acevoasapartner for#nfpsm.Booknowtoget yourearlybirddiscounthttp://tinyurl.com/65mxgde

Likewhatyousee?JoindiscussionsonACEVO’sLinkedIngroup(www.linkedin.com)andfollowACEVOandyourfellowmembersonTwitter (www.twitter.com/acevo).ContacttheACEVOmembershipteamifyouneedhelpsigningup.

Third Sector Life

If I wasn't a CEO…

I would be an aid workertrying to bring help to peoplecaught up in natural andman-made disasters. As aCEO it is only infrequentlythat youmeet the people youare trying to help, while aidworkers look the people theyare trying to help directly inthe eyes and see the fear anddespair of people barely ableto comprehendwhat hashappened to them. To be ableto bring some form of reliefin the shape of food, shelterormedicine into theirshattered livesmust be ahugely rewarding experience.

My admiration for aidworkers and the work theydo, often in extremelydifficult and dangerousconditions, knows no boundsand it would be a privilegeworking amongst suchinspirational people.

I know the physical andemotional demands involvedin doing such work are great.And recognising thatdelivering humanitarian aidoften involves having tomakelife and death decisions.I do wonder whether I wouldhave the courage. But beingable to see the face ofsomeone in extreme anguishto whom you’ve given ascintilla of hope wheremoments before they sawnone,must create a humanconnection that few peopleever experience.

PatFitzsimons,CEO,CommunityNetwork

Reward Management forthe Third Sector

Pay is important. It can be a primary motivatorfor staff – but only if you get it right. But it isalso one of the major costs of running a charity.If you are looking at creating or developing areward structure Croner Reward can help.

Looking to benchmark salaries? Ourcomprehensive survey – Charity Rewards, orbespoke Market Rate Reports can assist you.

Want to ‘size’ jobs? Then look no further thanour new online job evaluation tool.

And for more general pay advice – why not talkto one of our consultants?

Contact us today and learn what part goodreward management can play in controllingretention and motivation within yourorganisation.www.croner-reward.co.uk

01785 813566

CONTACT us for moreinformation

Past performance is not necessarily a guide to future returns. The return on investments and the income from them can fall as well as rise and investors may not get back the original amount they invested.

Registered charity number 268369

Call us today to discuss your investment needs 03000 123 222 or visit www.cafonline.org/investments

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WHERE CAN I FIND INVESTMENTS DESIGNED FOR CHARITIES?

This marketing communication is issued by CAF Financial Solutions Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4TA. Company registration number 2771873 (England and Wales). Authorised and regulated by the Financial Services Authority (register number 189450). Telephone calls may be monitored/recorded for security/training purposes.

Octopus Investments Ltd, 20 Old Bailey, London, EC4M 7AN. Company registration number 3942880 – registered in England and Wales. Octopus Investments Ltd is authorised and regulated by the Financial Services Authority (register number 194779).

Network Spring 2011

Business

Transcript of Network Spring 2011