News and commentary from the April/May edition of Corporate Citizenship Briefing, issue 105
Comment
Environmental campaigners have been highly successful in moving the “reduce, reuse, recycle” mantra from the margins to the mainstream. Given peoples’ familiarity with the concept, it is always refreshing to come across something new to remind us of the implications of continued consumption on our environment.
Though sites like ebay have sprung up under the auspices of reusing, what they do in reality is perpetuate consumerism (lots of retailers now use these sites), and fuel peoples’ desire to acquire more stuff at apparently bargain prices.
It’s therefore heartening to see the launch of MySkip – a site dedicated to passing on unwanted goods (for free) with the hope that one person’s trash is another person’s treasure.
The use of innovative technology and the desire to use this for social good is what differentiates MySkip from some of its peers – they have launched a free web-based software application called CCI (Charity to Community Interface) designed specifically to meet the needs of small non-profit organisations struggling to help their beneficiaries in the present economic crisis, while addressing serious environmental issues such as landfill and carbon emissions at the same time. The idea is that charities will be able to access goods that might be useful to them (such as furniture) or their beneficiary groups (like clothes, books and toys) either via computer or mobile phone.
Times are hard for the charity and not for profit sectors. According to a poll by the Charities Aid Foundation, four out of ten charities are operating on less income than they budgeted for, and more than half of the organisations affected by the recession have dipped into their reserves.
Now is clearly the time to think innovatively about resource allocation, distribution and sourcing and this is a real opportunity for both businesses and the not for profits to think creatively about how they operate and service their clients. If this can be done while bearing in mind considerations to the environment and our general consumption, so much the better.
In the midst of the recession, the question of whether companies can and will maintain their financial contributions to the community is an important one.
Stanley Litow of the IBM International Foundation in the US highlighted how the economic crisis will expose whether corporate contributions are sustainable and sincere, stating: “If it’s about spare change, and pure generosity is the only measure of success, then it’s going to be subject to economic changes, up or down. If it’s tied to your business strategy and is building shareholder value then it will fare well because it will be about real change”.
This suggests that companies which have their values and business objectives at the core of their grant-making programmes will continue to contribute as it makes sense for the longer-term financial stability of the company itself.
However, many charities are reporting a decline or no change in the financial support they obtain from companies. This indicates that in general, contributions are not increasing at a time when charities are experiencing ever greater demand for their services. But companies themselves have also had to deal with decreased budgets and many have had to re-think their community funding strategies accordingly.
Some are now focusing on directing grants into causes that can uphold their values most effectively in the context of the recession. For example, the Nationwide Foundation has also strengthened its focus on charities that tackle housing and financial exclusion issues. Meanwhile, the Lloyd’s TSB Foundation is supporting the basic survival of beneficiary charities by awarding grants to help them cover everyday running costs.
Perhaps these examples will lead to more companies reconsidering both the causes they fund and the kind of support they offer – moving from project finance to core funding.
The third sector certainly requires ongoing support from companies. In order to achieve this, in a drastically changed economic environment, charities will need to continue to demonstrate their long-term value to both the community and the business.
Government Taskforce set up to help in building stronger communities
A new UK Government Taskforce has been set up to look at innovative and practical ways that business and the third sector can work together to help those communities that need it most during the global downturn. The Taskforce will report its findings to Liam Byrne, Minister for the Cabinet Office, before the end of July. The Government’s aim is to build the strength of charities, voluntary organisations and social enterprises so they
are stronger than ever before. Contact: Cabinet Office www.cabinetoffice.gov.uk
MySkip helps businesses support charities
MySkip.com, is a new website that enables businesses and individuals to donate unwanted items such as furniture, electronics and clothing. The service, which is available from 6 April, is dedicated to promoting the reuse of unwanted goods. The web-based software application, called Charity to Community Interface (CCI) is designed specifically to meet the needs of small nonprofit organisations struggling to help their beneficiaries in the present economic crisis, while addressing environmental issues such as landfill and carbon emissions. Contact: MySkip www.myskip.com
Toyota manufacturing UK charitable trust launched
A presentation event at Toyota’s Burnaston plant on 23 April marked the official launch of the Toyota Manufacturing UK Charitable Trust, set up in 2008 to distribute funds to local good causes. In its first year the Trust generated £201,403 through corporate and employee fundraising activities. Each year the company nominates main beneficiaries from the Charitable Trust working in focus areas of children, environment, education and health. The remaining funds are distributed to other local charities and good causes in the same focus areas. Contact: Toyota Manufacturing UK Charitable Trust www.toyotafund.eu
Lloyds TSB Foundation awards £4 million
The Lloyds TSB Foundation for England and Wales has awarded £4 million in grants to 164 charities and third sector organisations in round one of its 2009 funding, it was announced on 14 April. Over two-thirds of the funding will go towards the basic running and salary costs of small and medium-sized charities in England and Wales to help them become more involved in their communities. Twenty charities that provide advice, advocacy and outreach to disadvantaged people will share over £625,000. Foundation chief executive Linda Kelly stated: “In this uncertain time for the voluntary sector, it is more essential than ever that we continue tosupport charities’ day-to-day running costs.” Contact: Lloyds TSB Foundation www.lloydstsbfoundations.org.uk
Nationwide Foundation launches £3.2 million scheme
The Nationwide Foundation has made available £3.2 million to help tackle the issues of housing and financial exclusion amongst disadvantaged groups. The Foundation launched two new grant programmes and an investor programme on 1 April. Money, homes and family matters are the focus of the programmes, (particularly victims of domestic abuse and those aged over 50). The Foundation will offer, through its Investor Programme, three year grants of up to £300,000 to registered charities with incomes not exceeding £10 million. Contact: Nationwide Foundation www.nationwidefoundation.co.uk
NGOs and Business have a lot to learn from each other
International NGOs will have to go through a transformative change process if they are to operate effectively with, influence and engage the private sector in a new breed of development coalitions, according to a report from Accenture Development Partnerships. NGOs have a real opportunity to play a very important role in harnessing the latent power of a private sector, but to fulfill this role they must first transform themselves to partner effectively as peers with their counterparts in other sectors. A short article on the report is on the CCB website at www.ccbriefing.co.uk. Contact: Accenture www.accenture.com
£130,000 boost for Northern Ireland small charities fund
Northern Ireland Social Development Minister Margaret Ritchie announced funding of £330,000 on 23 April to be made available as small grants to support volunteers in small local organisations. The funding is an increase of £130,000 on the amounts provided last year. Contact: The Northern Ireland Executive www.northernireland.gov.uk
Voluntary and community sector funding announced
On May 8, The Equality and Human Rights Commission announced a £10.2 million Strategic Funding Programme, providing three-year project-based funding of up to £450,000 for community and voluntary sector organisations. The priority groups include organisations that provide guidance, advice and advocacy in areas such as education, health and employment and increasing cooperation between people experiencing tensions. “In tough economic times, people who are on the sharp end of discrimination and inequality are more in need of support than ever,” said Trevor Phillips, chair of the Equality and Human Rights Commission. “Community organisations that give people skills, support and access to opportunity play a vital role in keeping communities together.” Contact: Equality and Human Rights Commission www.equalityhumanrights.com
First grants made from Scottish Entrepreneurs Fund
A media briefing organised by the Scottish Government on 23 April revealed that the first grants have been made from the Scottish Government’s £1 million Social Entrepreneurs Fund. Enterprise Minister, Jim Mather announced that disadvantaged young people will be given the chance to undertake work placements under one of the first projects. The fund, which was launched in November, is intended to help start up new social
enterprises, get unemployed people into work and to keep Scotland’s economy moving. Contact: The Scottish Government www.scotland.gov.uk
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