Contents
Aims and Objectives
The Charity Commission’s mission and strategic objectives, together with the commitment in the Corporate Plan provide the starting point for our partnership strategy.
The strategy seeks to identify ways in which the Charity Commission and the sector can be more effective through improved performance. A successful strategy will also help us to secure our strategic outcomes.
Specific objectives include:
- Using alliances to enable charities to work more effectively;
- Better communication of more effective ways of working, by using partnership organisations;
- Maximising our reach and impact – both making our money go further and delivering better outputs for charities;
- Increasing the creditability of our work (by co-production with practitioners) and thus confidence in our role;
- Ensuring a co-ordinated approach to working with umbrella charities; and
- Encouraging self-regulation and a reduced regulatory burden where possible.
Scope
Definition - We define a partnership as joint working with an organisation to produce a defined product that has wide application for charities generally or for a significant group of charities.
The primary stakeholders for the partnership strategy are:
- the national, professional, trade and sub-sectoral bodies which represent charities;
- charities themselves;
- other regulators (including self regulatory bodies);
- other government departments (e.g. Department for International Development (DfID) and Foreign and Commonwealth Office (FCO) on international work);
- the legal, accountancy and other professional bodies that collaborate on policy affecting charities; and
- others engaged in working with charities.
Commercial Partnerships
The partnership strategy applies equally to not-for-profit and for-profit organisations. However, there are particular issues which we will consider when looking at the scope for partnership working with commercial partners. We will use the policy agreed by the Board (OBM 7 - 25/01/2006) for providing data to commercial organisations as a reference point for issues that may arise in relation to commercial partnership.
Sign off of new partnership proposals and arrangements
In order to ensure a co-ordinated approach future partnership arrangements will be formally signed off at Director level.
Criteria for Partnership Working
We will develop criteria for determining priorities for partnership working based upon impact. Over time, the criteria will be developed into a risk based strategy and will use a number of additional criteria, which will include the potential benefits of the partnership, its potential reach and impact.
There are a number of ways to identify suitable partners and issues to take forward with them. This paper includes examples where the work undertaken as part of the day to day business of the Charity Commission can highlight areas for partnership working.
Existing relationships
Our work with the big/nationwide professional and umbrella bodies include National Association for Voluntary and Community Action (NAVCA), National Association of Citizens Advice Bureaux (NACAB), National Council of Voluntary Organisations (NCVO), Association of Chief Executives of Voluntary Organisations (ACEVO), Institute of Fundraisers (IoF), Fundraising Standards Body (FSB), Charities Aid Foundation (CAF), Charity Trustee Networks (CTN), Directory of Social Change (DSC), British Association of Settlements and Social Action Centres (BASSAC), Action with Communities in Rural England (ACRE), Council of Ethnic Minority Voluntary Sector Organisations (CEMVO), Community Matters and many others.
Elements of these relationships are positioned around our public affairs work and other elements are part of partnership working (e.g. work with Charity Finance Directors Group (CFDG) on pensions and Association of Charitable Funds (ACF) on the Statement of Recommended Practice (SoRP)). Developing deeper partnerships with these bodies is important because of their geographical reach or general breadth of coverage.
Existing collaborative work involving the Charity Law Association and the professional accountancy bodies (Association of Accounting Technicians (AAT), Chartered Institute of Management Accounting (CIMA), Chartered Institute of Public Finance and Accountancy (CIPFA), Association of Chartered Certified Accountants (ACCA), Institute of Chartered Accountants England and Wales (ICAEW), Accounting Standards Board and Audit Practices Board) are examples of successful partnership working to raise professional standards, encourage transparency and accountability and provide leadership in reporting and standards. In particular, recent work has focussed on the new Charities Act and SORP.
Whilst developing these partnerships is an important aspect of the strategy, not least because these bodies are important opinion formers, we will initially target sub-sectoral bodies as the links are generally less developed and there is huge potential to maximise our impact and charities effectiveness’ through working with these bodies.
We will seek to engage with umbrella bodies with substantial numbers of branches. Partnership working will be considered where it is clear that a particular issue or general advice can be effectively spread by the umbrella body amongst its branches. Where a number of review visits have been made to branches, a consolidated report for the umbrella could lead to joint working to address trends arising from the report. This would enable the Commission to use its regulatory role to enhance charity effectiveness.
Outputs and Outcomes
The main outputs that are being sought from partnership working include;
- improve the effectiveness of charities;
- enable the dissemination of good ideas and best practice;
- managing demand for our services;
- develop self regulation.
We will only undertake partnership working where there is a clear benefit to both parties which will lead to more effective dissemination of knowledge and products to:
- Reduce casework;
- Better quality, better informed sector;
- Produce new and promote existing Charity Commission publications;
- Build new strategic alliances;
- Encourage self regulation through delegated authority;
- Reduce the regulatory burden;
- Use of Charity Commission brands to endorse products that have wider sector impact;
- Stay informed about sector developments and issues;
- Work towards producing sector wide products such as standards;
- Maintain communication channels;
- Influence government policy in relation to the sector.
Theme-based partnership will concentrate on particular issues or themes within a group of charities where there is an umbrella body. This work can be effective through the large number of member charities reached through the umbrella e.g.
- the national bodies overseeing Parent Teachers Association (2,370 on the Commission’s Charity Database - CDB);
- Victim Support Schemes (98 on CDB);
- Age Concern (620 branches);
- MIND (208 local MIND associations).
Type-based partnership working involves concentrating on a particular issue that may apply to a range of charities working in the same sub sector, for example, children or vulnerable adults issues.
Type-based partnership opportunities will generally be picked up by review of casework through analysis of case management systems (CMS). It could also be triggered through analysis of Charity Commission Direct information. For example, a number of issues are coming into the Charity Commission about land transactions and this could form a strand of work. This type of issue links directly with our regulatory role.
We also work with other regulators at strategic and policy level as well as operationally. Partnership working with other regulators should help to:
- Encourage self regulation;
- Reduce the regulatory burden;
- Endorse products that have wider sector impact.
Tools and Techniques
The tools and techniques highlighted here are a continuum of the processes already used in our work.
Review Visits
Analysis of four years’ Review Visit reports had identified a number of charities with existing umbrella bodies in place including MIND, Age Concern, Arts Charities, Victim Support Schemes, Church groups, Victim Support, Women’s Aid and Crossroads charities. This has provided an opportunity to analyse reports of member charities/branches and for discussion of trends and findings with the relevant umbrella body. This has led to advice and guidance to the umbrella in scrutinising its information on governance to branches.
It also enables both parties to concentrate on specific trends and rectify recurring problems either through Commission casework, self regulation by the umbrella or joint publications. Selection of Review Visits on a themed basis will enable analysis of a number of charities under an umbrella organisation. This will provide a snapshot view of each charity’s effectiveness at governance and indicate whether any issues are single issues or part of a trend.
Develop sub sectoral links
There are established relationships with sector bodies such as NCVO, ACEVO, CEMVO, DSC etc. High level discussions and co-operation are handled mostly at senior level. There is a need to map out the frequency of contact, who with and the topic(s) discussed. There is also a need to identify and prioritise potential partners. The ad hoc forum of senior managers can be used to map out and maintain the frequency of contact with sub sectoral bodies.
Accreditation
Work is currently ongoing to help large umbrella charities review their quality standards tools and their systems to reflect the Hallmarks of an Effective Charity. This work could lead to the Commission concluding that these systems of review and standards are sufficient for the Commission to confidently withdraw from carrying out Review Visits to these umbrellas’ members.
Accreditation would normally be considered for National bodies where the Commission identifies areas that could be devolved to charity umbrella bodies or sector bodies. However, the strategy will also seek to identify potential for informal accreditation e.g. where a body creates a useful pack or guidance for charities that reduces Commission casework or advice work.
Reduce casework
Developing partnerships with larger umbrella bodies should be encouraged where a benefit to the Commission is a reduction in casework. This could involve better targeting of advice, information and publications through the umbrella to individual branches. Where trends are recognised in casework, the umbrella can be approached for joint working to eliminate the problem. The partnership manager should facilitate contact between the umbrella and the operational area to resolve the identified issue e.g. governing document updating. Another aim of partnership work should be to explore how self regulation activity can be enhanced or encouraged. For example, where there is a high turnover in registration or removals, exploration of channelling through the umbrella may be effective for both the Charity Commission and umbrella.
Production and promotion of publications
Collaborative working between the Commission and other bodies e.g. HM Inland Revenue (now HM Revenue and Customs), Institute of Chartered Secretaries and Administrators (ICSA), has already resulted in joint publications. There is also scope for the Commission to endorse certain publications circulated among member organisations, e.g. publications that enhance our role or provide best practice in relation to governance. We will specifically look at areas where there is scope for more joint packs as this will be more effective at a national level than bespoke publications for sub sector partners.
The role of the partnership manager will include building new strategic alliances with sub sectoral partners and acting as a conduit for other areas of the business. For example, Victim Support are considering a range of options for restructuring. The partnership manager has facilitated an early contact between the charity and our mergers unit to discuss the proposals.
Building effective strategic alliances and encourage self regulation
In promoting self regulation, areas of delegation and accreditation need to be identified. These are specific areas where both parties are satisfied that messages meet requirements and there is sufficient authority for the partner to process any delegated work. Training requirements will need to be considered. Effective strategic alliances are already in place in various parts of the Commission. These include the Directory of Social Change’s dialogue with small and medium charities to explain the Commission’s charity engagement programme and The Fundraising Standards Board taking forward self regulation proposals. Both of these are important partnership strategy areas. It is also important that the partnership strategy includes sub sectoral partners to take forward general issues on a national basis.
Collaborate on development of sector products
The Commission regularly addresses particular sector issues, usually leading to a Research Report on a particular topic. The Commission’s aim of championing the public interest in charity can be enhanced by bringing clarity to, or resolving, a particular issue. The Commission could also be innovative in defining standards for certain commercial products that the sector uses, e.g. insurance costs, particularly Trustee Indemnity Insurance. The cost of this insurance is frequently high and the variation between the costs of policies is wide. Often policies are sold to charities that cover fraud and maladministration – indemnity for actions that are specifically precluded for trustees. Whilst the Commission would expect charities to shop around for policies, the reality is that not all do and many use brokers.
There are precedents for collaborative working to develop sector products. Examples include the model governing documents developed by the Charity Law Association and endorsed by the Commission, and SORP-related work with accountancy bodies and the Association of Charitable Foundations (ACF), sector umbrella bodies, and a number of leading accountancy firms. We also provide useful links on our website to sector bodies. We will need to be careful to manage commercial risks.
Endorsement
Where products developed by partners are identified as having a wider sector application, we should give formal consideration to endorsing those products. The Commission has previously past endorsed products such as the Code of Practice on Horse and Donkey Welfare. More recently, the Commission has endorsed ‘Good Governance Code for the Voluntary and Community Sector’. There is also the possibility of endorsing quality standard tools for smaller charities e.g. Practical Quality Assurance System for Small Organisations (PQASSO). Endorsement of sector developed products would strengthen the concept of self regulation.
Any quality standard produced for smaller charities must be proportionate and we could set out a minimum standard with an incremental growth in requirement in line with charity size/income.
Any proposal to endorse a product must have the specific agreement of the Chief Executive. We will not endorse any commercially developed products but that does not preclude any products where the umbrella body has obtained commercial sponsorship to fund its development.
Evaluation
The success of the strategy can be measured in a number of ways. We would seek direct feedback from partners on the degree of difference it has made to their work and thinking. The establishment of a sub sector umbrella body forum will allow specific consultation and also give us valuable feedback from this particular sector on charity issues and thinking.
We will be able to measure the number of endorsements, the number of partnership working opportunities, and the number of products flowing from this working i.e. publications, articles, collaboration etc. Reductions in casework will be measured where we accredit an umbrella body to take forward issues with their members. There will also be opportunities to measure the number of themed projects and the benefits flowing from those projects e.g. issue type reviews and solutions from identified problems.
There will be opportunities to test the evaluation of partnership working through commissioning review visits to check on processes implemented by charities as a result of our joint work. Also, the forum of senior staff will evaluate the strategy as it develops.
Taking forward our Partnership Strategy in Wales
In its first two years, the Welsh Office has established a positive presence in Wales, engaging in outreach and partnerships with many organisations that share our aim of “maximising the effectiveness of charities”.
Wales is a country in which the principle of working in partnership is well established and there is great potential for the Welsh Office to articulate our partnership strategy within the context of the Assembly, Welsh language, strong local communities and an emerging national identity.
Partners – in line with the objectives set out in the wider strategy, we should identify statutory, voluntary and professional bodies in Wales that advise charities, provide capacity building, are major funders or have a statutory role:-
At a national level in Wales
- Welsh Assembly Government (WAG) - there is an opportunity to be proactive and build links and better understanding with Assembly Members (AMs). We have already made links with the Social Enterprise Initiative which will involve increased trading by charities. WAG also funds several of the large charities – Welsh National Opera, Museum, Library, WCVA;
- Wales Council for Voluntary Action (WCVA) - plays an active role in policy discussion and advocacy for the voluntary sector. We participate in events organised by the WCVA including charity law conferences and regional events. They promote our publications through their newsletter and e-briefing;
- Wales Institute of Fundraising, Big Lottery Fund, Institute of Chartered Accountants, Welsh Development Agency –opportunities for joint events, MOU’s and work with charities.
Developing sub sectoral links
- County Voluntary Council's (CVC’s) – there is a strong network of CVC’s covering the 22 local authority areas. We have visited their offices and provided training days for Development Officers on charity law and our role as an enabling regulator. This has established the basis for mutual referrals, alerted us to instances when a charity is being mismanaged and proved very useful in progressing some intractable cases;
- Coal Industry Social Welfare Organisation (CISWO) has also proved an effective partner with grassroots knowledge and experience of the common issues that arise with Miners Institutes;
- Umbrella bodies for charities are increasingly developing a Welsh focus. There is an opportunity to link with - Welsh Women's Aid, MIND Cymru, Age Concern Cymru, Church in Wales, to build a better picture of the common issues.
Sub Sector Umbrella Body Partnership Pathway and Methodology
