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Charity Commission reform vital for civil society strategy to work

Tracey Crouch
Can Tracey Crouch bring the whole government together to discuss the strategy? Photograph: Stephen Pond/Getty Images for Sport England

The government has just closed consultation on its plan to help create a stronger civil society in the UK. It’s an opportunity for the social and charitable sector to make demands of legislators while looking at itself and being honest about what it can do better for the causes, people and places it serves.

We at New Philanthropy Capital have made 21recommendations on the civil society strategy across a wide range of topics, but there are a couple of key things the government could do to make a massive, positive impact on the sector.

First, reform the Charity Commission. It is an organisation full of dedicated people, but is straining under the weight of limited resources and an increasingly conflicted remit. It should be the regulator the sector needs, not its cheerleader. The sector should investigate whether the support it offers charities should be spun out into a new, independent organisation dedicated to sector-led improvement.

We also think what the commission regulates should change. It is too focused on financial stability and organisational survival at the expense of whether charities are having an impact for beneficiaries. We want to see a toughening up of annual impact reporting as part of the commission’s processes. Many charities already do this, but many don’t – if we can get them seriously thinking about their impact, the people they serve stand to benefit.

Second, start thinking about place. Austerity means the shape and scope of local public services need to be radically re-thought. Success will depend on a new partnership between the public, private and social sectors. We believe this is best done locally – so devolving budgets to those who know where to spend them is necessary for a more impactful civil society.

It’s not enough to change where services are commissioned – how they are commissioned must change too. Our research shows that 64% of charities involved in government contracting need to subsidise the contracts with income from other work. The Social Value Act should allow commissioners to accept more expensive bids from organisations offering added value over the long-term, but this is not happening. Government needs to strengthen the act to make it useful to commissioners who are concerned to demonstrate their decisions have created value for money.

While it is important that Whitehall is a supportive friend, it is also important that the sector leads through its own initiatives. In a difficult world, we must up our game.

In answer to pressured services, philanthropic bodies need to be strategic and impact-focused about the donations they make, coordinating their grant-making to tackle difficult social problems. Making this happen will require greater transparency around where grants are going, and we strongly support initiatives from within the sector, such as 360 Giving.

Will we see action out of this strategy? As is clear from our recommendations, many issues will need to be addressed by the whole government, not just the Office for Civil Society or Department for Digital, Culture, Media and Sport. The question is, do Tracey Crouch, the minister for sport and civil society, and Matt Hancock, the digital, culture, media and sport secretary, have the clout to bring them to the top table of a government at war over Brexit? Stranger things have happened.

Whatever the case, relying on government is a risk. Charities should be thinking about how they can make their submissions to the strategy a reality themselves.

  • Nathan Yeowell is head of policy at New Philanthropy Capital


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