Small charities in crisis but fear not…here comes the government

commissioning20report20coverThe excellent ‘Commissioning in Crisis’ report from the Lloyds Bank Foundation for England and Wales recently set out how ‘broken commissioning threatens the survival of small charities’. And just a week later the Minister for Civil Society, Rob Wilson, announced a programme to help get small charities into the public service supply chain.

Excellent – responsive government, sensitive to the needs of small charities and acting on available evidence in a decisive and timely fashion, right?

Maybe.

Or perhaps it’s merely encouraging more small not for profits down the road of wasted hours, time and thankless bureaucracy in the forlorn hope of winning contracts?

To help me make up my mind (and mindful of the political dimensions of interpreting evidence), I thought I’d start by taking a look at what Commissioning in Crisis says.

Much of the report’s content will not come as much surprise to anyone who has worked for or with small charities (or for that matter a SME). Phrases like unacceptable hoops, poor scrutiny and irrelevant requirements are sadly all too familiar to those who have ventured bravely down the public service procurement path. It is worth mentioning at this stage that this type of bureaucratic time-wasting is not the preserve solely of government. At their worst charitable trusts and foundations ae also guilty of poor processes and systems that place huge unnecessary burdens on applicants. It is by no-means widespread and substantial effort to improving things has been made over the past 20 years or so….but not to the extent that charitable grant-makers can start pointing out the inadequacy of government without impunity.

My perspective here may not be unique, but I have worked as a grant-maker; I have developed commissioning processes in local government and I have applied for numerous grants and public service contracts within small charities. In my experience, public sector procurement is far far worse than almost all charitable grant-makers application processes.

What is not new, but has now reached epidemic proportions, is the shift away from grants towards contracts for no other reason than the new public management orthodoxy says grants are bad and contracts are more efficient. It is a widely held view and one that I have absolutely no sympathy for. The evidence to justify this politically-motivated approach is noticeable only by its complete absence. I am not for one minute suggesting that contracts are inappropriate in some circumstances, what I am saying is that they are used crudely and inappropriately far too often.

The solution offered by the Minister is – as Gethyn Williams pointed out – very reminiscent of government policy circa 2005…but without the money to back it up. We have a Public Service Incubator, a commissioning kitemark and a voluntary, community and social enterprise crown representative.

I had never heard of a ‘crown representative’ before but it turns out it’s something that was introduced in 2011 in order to ‘help the government to act as a single customer.’ Strategic suppliers – which appears to mean big business – have Crown Representatives. The likes of Serco, BAE Systems, Tata Steel and Lockheed Martin have named individuals on a document on the Cabinet Office website. There’s also one for the banking industry, one for the energy industry and one for SME sector.

Clearly someone feels that’s a model which is working so well it ought to be replicated for the not for profit sector. I wonder whether the Federation of Small Businesses would care to comment on the efficacy of the approach?

In 2005 we didn’t have Public Service Incubators we had a national training programme through the ‘Partnership in Public Services’ programme.

An article in Third Sector magazine from 2006 says this:

The Government has pledged to make procurement processes fairer and more proportionate by drawing up a set of standard contracts for public bodies contracting services from the voluntary sector.

Sound familiar?

The fact is that huge budget cuts and increasing demand on public services has made things far worse, not better, in a great many instances.

Smaller charities may well be facing a crisis; indeed it is one that has been rumbling on since 2008/9. The belief that the solution is to spend time learning to navigate the labyrinth of public sector procurement processes and compete for an ever-diminishing pot is misguided. Surely the solution is to change the system rather than suggest everyone learn how to play by the broken rules of commissioning?

I’m not suggesting that’s an easy task for central government or local government. But I’d like to think that if we put our minds to it, we could come up with a better solution than a commissioning kitemark and crown representative. And maybe it involves small charities and community groups getting on with delivering social benefit without necessarily delivering public services.

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One thought on “Small charities in crisis but fear not…here comes the government

  1. Pingback: Five things the government could do to really support small charities | tobyblume

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