NCVO Policy Analysis: Giving White Paper

Transcription

1 NCVO Plicy Analysis: Giving White Paper June 2011 Cntact: James Allen Tel:

2 The Gvernment published the Giving White Paper 1 n Mnday 23 May as the culminatin f a wide cnsultatin fllwing the Giving Green Paper riginally published in December The White Paper utlines the Gvernment s strategy fr giving and the Gvernment s prpsals t increase the rates f giving and the numbers f peple that give. This is a challenging prpsitin the UK is already a generus cuntry and current ecnmic cnditins will present difficulties in seeking t raise levels f giving. This plicy analysis utlines the key elements f the White Paper and a range f recmmendatins and next steps 2. The White Paper builds n the brad themes f the Green Paper 3 and utlines sme specific prpsals in mre detail. Like the Green Paper befre it, this is nt a traditinal White Paper it des nt frm a cnsultatin that cmes befre legislatin but is rather a cllectin f varius ideas and a drawing tgether f the extensive number f cnsultatin respnses that the Cabinet Office received fllwing the Green Paper. The White Paper utlines early details f a range f specific initiatives, sme new investments and annunces a Giving Summit t be held in autumn There are many ideas presented in this White Paper and much f it is psitive. It signals the Gvernment s clear intent t grw the levels f giving in the UK. It marks prgress frm the Green Paper in that it sets ut mre clearly what the rle f gvernment shuld be in setting framewrks, wrking with ther sectrs and in disseminating best practice. Gvernment can use its size and prfile t generate publicity and awareness and can draw tgether grups that may nt therwise cme int cntact. This is the brad scpe f the rle f gvernment in increasing giving that NCVO utlined in ur Giving Green Paper respnse, and it is psitive that gvernment has respnded t this. The White Paper mves away frm a prpsed mandatry payut requirement fr fundatins as suggested in the Green Paper. NCVO was ppsed t this prpsal and this is therefre welcme. The Gvernment believes that increasing participatin (in terms f financial giving and the gift f time thrugh vluntary and scial actin) is pssible and identifies the fllwing as indicative f the ptential t d mre: giving is cncentrated: a minrity give at significantly abve average rates; dnrs in lwer incme brackets prprtinately mre f their incme, suggesting ptential fr higher giving levels amngst higher earners; businesses culd in many cases d mre and learn frm the exemplary cmmunity wrk that many businesses already d; there is a current need t match skills and time with rganisatins wh need skilled, pr-bn supprt. Specific prpsals and investments The Gvernment has annunced a number f specific prpsals and investments, including sme significant and ptentially prmising new spending. 1 Cabinet Office: Giving White Paper 2 Fr further cmment, please read NCVO s initial respnse t the White Paper and an article in the Guardian n the White Paper 3 Cabinet Office: Giving Green Paper and NCVO: Respnse t the Giving Green Paper

3 These include: A new Lcal Infrastructure Fund This will funded by an investment f 30m and includes prvisin fr a single nline resurce. This will be administered by the BIG fund and is intended t prvide imprved supprt t frntline vluntary and cmmunity rganisatins (VCOs) in England. This was a key recmmendatin f NCVO s Funding Cmmissin, which reprted in December The key bjectives are t: supprt mre effective lcal hubs with better integrated supprt; supprt the develpment f an nline resurce bank ; supprt the develpment f mre effective crss sectral lcal partnerships. Gvernment s recgnitin f the imprtance f lcal infrastructure is psitive, particularly given cncerns arund the impacts f funding cuts t these rganisatins. NCVO will push fr clarificatin n hw and where this mney will be spent given the need fr certainty in rganisatins planning their futures. There is ptential fr mdernisatin and mre effective infrastructure prvisin at all levels, and this investment shuld g a lng way tward adequately funding thse changes. Demand fr vlunteering pprtunities is utstripping supply in sme areas while ther rganisatins are struggling fr vlunteers in a climate f increasing demand and many are als unable t invest in vlunteer training and supprt due t a lack f resurces. This underlines the need fr such a fund and als suggests that there is ptential fr ratinalisatin and a mre effective allcatin f resurces, including vlunteer time, at a lcal level. A Scial Actin Fund and Challenge Prizes n vlunteering These are new investments with an apprximate ttal f 10m. The Scial Actin Fund appears t have a relatively small budget but a wide remit and while investment in this area is imprtant and welcme, there is a danger f attempting t d t much with limited resurces. The Fund intends t: fund schemes t prmte giving in pririty areas and grups t include thse nearing r in retirement and graduates f the Natinal Citizen Service; t supprt schemes that have the ptential t deliver a significant uplift in rates f giving. It will supprt schemes which have ptential t be sustainable and t scale-up. It will prvide supprt and platfrms fr new innvatins and t build lcal platfrms. It is clearly right t supprt schemes likely t succeed, thugh there are cncerns arund attempting t scale-up successes in cases where replicatin may be mre apprpriate and, indeed, a larger scale wuld take away many f the attributes f successful lcal prjects. the Challenge Prizes will reward charities and scial enterprises that develp ideas arund vlunteering with prizes f up t 100,000. This is a ptentially psitive way f incentivising and shwcasing best practice and innvatin thugh this shuld nt distract frm the fcus f building sustainability acrss the whle sectr. It is als imprtant that these prizes reflect activity in less ppular r visible areas, including attempting t raise levels f giving and participatin fr difficult and ften cntrversial scial issues. 4 NCVO s Funding Cmmissin reprt is available at

4 Participatin in terms f giving time and mney is currently unequal. The Gvernment acknwledges that this is a prblem and that there are significant barriers t participatin fr many peple but des nt prpse any significant new plicy slutins. The Cmmunity First prgramme This previusly annunced prgramme will include a 30m Neighburhd Match Fund and a 50m endwment match fund. The intentin is t prmte scial actin in areas f significant deprivatin and lw scial capital. Building capacity and cnfidence in cmmunities and supprting prgrammes t becme sustainable is very psitive. Whilst being mindful f the current UK fiscal psitin, this is nt a significant investment when the cntext f the scale f the challenge and the wide scpe f the prgramme is cnsidered. The 30m fr the Neighburhd Matched Fund Prgramme will prvide resurces fr cmmunity led prjects in specific English lcatins. Cmmunities will be required t identify prjects and then match funding frm gvernment which may include vlunteer time, cash gd and services. Whilst the principle f match funding is intended t drive respnsibility and sustainability at a cmmunity level, it is imprtant that high levels f supprt are given t the mst deprived cmmunities. Where scial capital is at its lwest, simply identifying individuals t cmment n cmmunity pririties may prve challenging. The rle f cmmunity rganisers is therefre essential. Cmmunity rganisers funded by gvernment are an imprtant step frward, thugh it is imprtant that they build n existing cmmunity develpment wrk, are nt perceived t be perating in a tp dwn way and that they have adequate freedms t wrk flexibly. There are prmising signs that gvernment will nt be setting centralised bjectives fr thse rganisers. The secnd element, 50m in Endwment Match Challenge Funds will be available acrss England. It will build lcal endwments thrugh dnatins and these are intended t becme sustainable ver time t prvide incme t award grants. Finally, an additinal 1m will be made available as part f this prgramme t match fund the Evening Standard s Dispssessed Fund. Fiscal incentives The range f fiscal incentives annunced as part f the Budget are repeated in this White Paper and include prpsals t reduce the rate f inheritance tax by 10% (frm 40% t 36%) t estates giving ver 10% t charity, a scheme t prmte the giving f eminent art t the natin, an increase t the level f gift that charities can give t majr dnrs t acknwledge their genersity and changes t small dnatins and their Gift Aid treatment t allw VCOs t claim tax relief n dnatins wrth up t 5000 each year (wrth 1250) withut the need fr declaratins. Overall, this is a psitive set f prpsals, and we wuld encurage gvernment t take these frward urgently. This shuld cme alngside gvernment lking at gathering further evidence t frm a detailed view n the ptential f lifetime legacies. Fiscal incentives are part f the mtivatin fr giving and it is psitive that gvernment des nt appear t see them as the key means f prmting a giving culture and recgnises the need t link fiscal incentives t wider plicy aims. There are a range f further specific prpsals in this White Paper, including:

5 an investment in a new service frm Philanthrpy UK and the Cmmunity Fundatin Netwrk t build up philanthrpic infrastructure. This is significant as it can be hard t give mney away and philanthrpists need an entry pint and supprt 5 ; a Philanthrpic Giving Cmmittee, which will include wrk n the develpment f the Philanthrpy UK service; the White Paper acknwledges the imprtance f impact measurement and gvernment will wrk with strategic partners t identify easier, cheaper and clearer ways t measure and reprt impact; the launch f a year lng natinal campaign t increase take-up f payrll giving; a re-launched Payrll Giving Awards with the Institute f Fundraising in Octber Gvernment will als cnsider a kitemark fr businesses with payrll giving schemes; highlighting and celebrating gd practice is imprtant and can help t influence behaviur. Payrll giving rates have, hwever, remained stubbrnly lw and it will take real cmmitment and investment t raise these rates. Further changes, including prtability t ensure that payrll giving cmmitments can be mved t new jbs wuld make a mre significant difference. a new cmmittee t cnsider hw the hnurs system might reward sustained philanthrpy; this may prve imprtant, thugh it is imprtant t recgnise the limited applicability f frmal hnurs t many peple and als that any such system recgnises nt nly the highest value dnrs. gvernment will set an example in vlunteering, building n previus Civic Service vlunteering annuncements where civil servants vlunteer t see Ministers vlunteering ne day a year. Gvernment will als increasingly pen up its estate fr the use f VCOs; there will be a number f cnsultatins, summits, pilts and ther exercises t cntinue t gather views and infrmatin, including: a rundtable n ATM giving (all LINK cashpints shuld have ATM giving available frm later this year). This alng with mbile giving is significant in that it marks an attempt t integrate giving int ur daily lives thrugh using platfrms that are already part f ur regular activities 6 ; a rundtable n encuraging banks t prmte high quality philanthrpy advice; an nging Rund the pund wrking grup a Giving Summit in autumn 2011 t include Rund the pund, mbile giving, flexible vlunteering platfrms and impact reprting; pilt schemes arund cmmunity time credits with funding frm bth gvernment and NESTA t pilt the SPICE Cmmunity Time Credits scheme (currently running in Wales) in England; a cnsultatin n inheritance tax (IHT) changes annunced as part f the Budget; the Every Business Cmmits Frum will investigate barriers t payrll giving take-up by SMEs. Pririties and recmmendatins 5 Centre fr Charitable Giving and Philanthrpy (CGAP): respnse t the Giving White Paper 6 CGAP: respnse t the Giving White Paper

6 1. Fcus and clarity, including arund funding practices: gvernment has unveiled a number f ideas, prgrammes and initiatives. Many are psitive but there is a danger that this may be lst due t cnfusin. The vluntary and cmmunity sectr (VCS) is als underging a perid f cnsiderable transitin. This is disruptive which means that clarity ver the timing f new funding and when funding is new r being re-annunced is imprtant. 2. Tackling barriers: acknwledging barriers t the giving f time and mney is imprtant, and nw investment and attentin must be paid by gvernment wrking with the VCS t develp mechanisms fr tackling these barriers. This shuld als be a rle fr lcal infrastructure t address hw participatin can be widened in cmmunities. Sme f the recmmendatins including micr-vlunteering and time banking are welcme, but they are nt the full slutin. Peple still have ther pririties like caring respnsibilities and full time wrk that even micr vlunteering can nt slve alne. 3. Time vs mney: The giving f time and mney are related, but distinct, as are the mtivatins fr ding them. Clarity n the part f gvernment abut which type f participatin it is trying t achieve and an understanding f the different barriers will be a pre-requisite t success. 4. Scial Actin Fund: the Fund is psitive but given its remit and budget there is a danger that it culd becme ver-stretched very quickly. Gvernment shuld regularly review its budget and ensure that it has adequate resurces. 5. Review and evaluate success: given the large number f initiatives, success and impact must be regularly evaluated. Gvernment shuld als evaluate the success f the range f initiatives already launched. Gvernment shuld retain an imprtant rle in evaluating the full range f activities in which it is invlved, including cmmunity rganisers. 6. Evidence: gvernment and the VCS must invest in rbust research and analysis t ensure that plicy is based n evidence. This will include mnitring the impact f the varius initiatives t prmte giving as well as gathering evidence arund the likeliness f future plicies (e.g. lifetime legacies) t succeed). There are cncerns arund the impact f cancelling a number f imprtant mechanisms fr gathering data, including the Citizenship Survey. Whilst sme new surveys are being develped, these shuld build n existing gd wrk and data. 7. Impact: gvernment accepts the imprtance f impact measurement as well as its challenges, fr example in having enugh qualified staff in the sectr t carry ut impact measurements. It shuld implement Recmmendatin One f NCVO s Funding Cmmissin and establish an Increasing Impact Fund. 8. Jined up plicy making: plicies arund giving shuld be cmplementary with ther plicies pursued acrss gvernment fr example in ensuring that the prmtin f scial investment generates new incme and resurce fr the VCS and des nt detract frm giving rates. 9. Match funding: this is an imprtant tl in building financial sustainability and is ften an apprpriate frm f funding. Hwever, sme schemes in deprived areas and prgrammes seeking t prmte causes that are nt ppular r visible may need higher levels f grant supprt, particularly in the early stages and funding shuld nt therefre be verly skewed tward rganisatins capable f quickly securing funds t match thse f gvernment. Next steps In keeping with the tne f this White Paper, where the rle f gvernment is seen as ne f c-rdinating, disseminating best practice and setting framewrks rather than

7 fcusing n direct plicy interventins, this White Paper is framed as a starting pint fr discussin. Gvernment will cntinue t cnsult widely and draw tgether key cntacts frm acrss sectrs. NCVO will be engaged with gvernment thrughut the cnsultatin perids and n the wider issues fr the sectr. We need members t let us knw hw these prpsals will affect them and hw yu will be respnding t gvernment.