News and comment for December / January from CCB 103
Like it or not, many companies will be cutting back on their cash community spend this year in anticipation of even gloomier economic times ahead. That is not to suggest that corporate giving will dry up altogether. However, the top priority for many firms will be to uphold existing funding commitments, but perhaps look to scale back smaller grant making programmes or to focus spending more tightly around strategic priority areas. So how can a firm act responsibly towards its charity partners in the current economic circumstances? Forewarned is forearmed, as the saying goes, so keeping partners updated on developments – however foreboding – is a key first step, and gives the charity as much time as possible to look for alternative sources of funding. Here too, the business partner can have a role in facilitating introductions to business contacts, providing non-cash resources or even by providing references for funding bids. For remaining charity partners, firms should consider directing a proportion of their investment towards core funding, a key concern for charities in a recession, as the CAF report highlights. Alternatively, payroll giving and employee fundraising are other sources of funding that could be channelled towards a charity’s running costs. Finally, perhaps the most important action for community affairs professionals to take on behalf of their charity partners is to build a solid business case for a community investment budget. Demonstrating measurable value to the business – such as press coverage, employee satisfaction or customer awareness – may well help safeguard against significant budget cuts going forward and therefore ensure future funding for key charity partners.
Volunteering England’s ‘recession challenge’
The charity Volunteering England is challenging the Government to invest in volunteering to contribute to national and personal economic renewal. The call to action is included in Volunteering England’s nine-point “Recession Challenge”, which the organisation presented to the Office of the Third Sector at its Strategic Partners meeting on 15 December. The Recession Challenge sets out nine key challenges to central and local government, volunteer-involving organisations and the private sector, in order to make the most of volunteering’s potential to contribute to economic recovery.
Contact: Volunteering England www.volunteering.org.uk.
Charities say companies wanting to support them should offer funding and access to their contacts
Despite the huge developments in company support for charities over the past decade, results of a survey of 161 large, medium and small charities published on December 15 by the Charities Aid Foundation (CAF), shows there is still a “sizeable gap” between the support that charities need most and what they feel companies are willing to give. Whilst charities welcome all types of support, they most value ‘core funding’, ‘funding for specific projects’, ‘access to business networks’ and ‘gifts in kind’; such as free venues. However, more than two thirds of the charities surveyed do not believe that companies are willing to offer core funding; the assistance that is most likely to help them through the recession. Since the last recession there has been a substantial increase in the number of companies forming strategic long-term partnerships with charities. The survey also asked charities what they most look for in their ideal corporate partner. They ranked long-term support, being an ethical business and a passion for their cause as the top three priorities.
Contact: CAF www.cafonline.org
Philanthropy in a downturn, the £10.6 billion question
The Philanthropy UK Newsletter (December 2008) has said that the panic pervading the charitable sector is not mirrored in the donor community. In the newsletter, interviews with philanthropists and their financial advisors outline how, historically, swings in giving tend not to be as dramatic as swings in the broader economy, while Foundation grants, in particular, tend to be resilient in a downturn. Philanthropy UK say that whilst corporate giving is likely to suffer in a recession, as it is directly tied to profits, community programmes usually remain a priority. Furthermore, the organisation asserts that although there are likely to be far fewer company sales in the near term, ‘there already has been a lot of wealth transferred to charitable foundations or donor advised funds, such as charity accounts at community foundations or CAF, and all of these (albeit reduced) contributions will make their way to good causes’
Contact: Philanthropy UK www.philanthropyuk.org
Barclays allegedly closes Palestinian charity’s account
According to the Ummah Welfare Trust (UWT), UK registered international relief and development charity working in Palestine, Barclays bank has sent them a 30 day notice, asking the charity to close their bank account. A spokesperson at the Charity Commission said ‘this situation involving Ummah Welfare Trust (UWT) and Barclays Bank is not one in which the Commission can become directly involved or seek to influence. It is a business decision for any bank as a supplier of financial services as to whom they offer those services, and it is a matter for the trustees of any charity to decide which financial institution holds their funds. However, we are discussing the potential implications for UWT’s charitable work with its trustees, and will provide them with any appropriate advice and guidance.’ Barclays could not comment when contacted, due to client confidentiality.
Contact: Charity Commission www.charity-commission.gov.uk
Trust in charities bounces back whilst faith in banks wilts
Public trust in charities has jumped 23% (from 42% to 65%) between July 2007 and November 2008, the biggest “bounce-back” of any type of major British public body or institution – according to latest figures released by nfpSynergy on January 13. The figures come from the voluntary sector think tank’s Charity Awareness Monitor, which surveys a representative sample of 1000 16+ year olds throughout Britain every year, asking which British institutions they trust most. The latest increase moved charities from sixth to fourth place in the monitor’s overall rankings, with the armed forces staying in first place at 76%. The poll of showed that public confidence in banks dropped nine percentage points to 17% over the same period, placing them in second to last position. Insurance companies were the least trusted by respondents, with confidence falling by five percentage points to 13%.
Contact: nfpSynergy www.nfpsynergy.net
COMMENTS