Archive for the ‘Finance’ Category

Gift Aid System

Friday, September 10th, 2010

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Gift Aid system costs charities £750m a year, says report

Thinktank ResPublica says the Gift Aid system needs to allow text donations and develop its online presence if it is to remain relevant in the digital age.

Charities are losing out on £750m a year because the “antiquated” Gift Aid system is overly bureaucratic and imposes a burden on struggling organisations, the thinktank warns.

Read the Guardian story http://www.guardian.co.uk/money/2010/sep/06/gift-aid-digital-reform

Read the ResPublica story and download the report http://www.respublica.org.uk/articles/charities-missing-out-%C2%A3750-million-gift-aid-because-antiquated-system-says-new-respublica-r

Veolia Environmental Trust Launches £1.2m volunteering fund

Friday, September 10th, 2010

The Veolia cre8 funding challenge will award grants of up to £300k to four organisations

The Veolia Environmental Trust, the charitable arm of waste management firm Veolia, has launched a £1.2m fund to support new volunteering projects.

Under a scheme called the Veolia cre8 funding challenge, the trust will give grants worth up to £300,000 each to four organisations to set up volunteering schemes that “bring generations together and help to improve health and wellbeing”.

Other criteria for applications include demonstrating that the projects will leave a legacy and will allow the volunteers to develop new skills.

Projects must be located within 10 miles of a licensed landfill site.

Margaret Cobbold, executive director of the trust, said: “We have introduced Veolia cre8 to help larger, more creative and ambitious projects that will see volunteers of all ages and backgrounds improve or create public amenities and leave a legacy for everyone to use and enjoy.”

The applications process will close on 1 December.

Organisations interested in submitting an application should visit the trust’s website for more information.

Too poor to retire – the over 55s with no pension,no savings, just massive debts

Friday, September 10th, 2010

Money worries: Thousands of over 55s are struggling with debts, with some living on an income of just £25 a day

Money worries: Thousands of over 55s are struggling with debts, with some living on an income of just £25 a day. (Posed by model)

Millions of the elderly and people approaching retirement have no pension, no savings and large debts, shocking research reveals today.

The figures paint a worrying picture of a country with a ballooning population of elderly people who cannot afford to retire, with many surviving on an income of only £25 a day.

Click here to read full report

Quarter of a million carers missing out on new State Pension protection

Friday, September 10th, 2010

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A quarter of a million people caring for an ill or disabled friend or relative could be missing out on a top up that protects their basic and second State Pensions in later life.

An estimated one million people have given up work to care for someone and Pensions Minister Steve Webb wants ‘hidden’ carers who could be eligible for Carer’s Credit to benefit.

Steve Webb said:  “It’s natural that people caring for a loved one often forget about their own needs and thoughts about the future are pushed to one side.  But this is a very simple way for carers to protect their State Pension and I urge people to find out more by visiting the Directgov website or by calling the Carer’s Allowance Unit.”

People giving up their time for 20 hours or more a week to provide unpaid care for a loved one, who are not already claiming Carer’s Allowance, could qualify.

There are currently less than 1,000 people getting Carer’s Credit. The Government and Carers UK are calling for people to help identify hidden carers and encourage more people to ensure they are claiming all they are entitled to.

Many people looking after an elderly parent, ill spouse or disabled child do not think of themselves as carers.  In fact, according to research from Carers UK the majority of people who care for relatives take over a year to realise that they have become a carer. But if you are giving up time to cook, clean, shop or provide personal care, unpaid, for someone you could be entitled to Carer’s Credit.

Carers UK Chief Executive Imelda Redmond CBE, said:

“If you give up work to care for someone who is close to you who is ill or disabled, often the last thing on your mind is planning for your pension. But it is vital that carers check that they are claiming the right benefits or credits to ensure that they will get their full State Pension in retirement.”

Carer’s Credit is not a cash sum now but means that a carer’s financial future can be protected. It credits a person’s National Insurance record for the time they are caring, helping them to build up their State Pension.

click here fore more information

Charity raffles in pubs and clubs ‘may be illegal’

Friday, September 10th, 2010

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Solicitor calls for clarification of the law

A law firm is calling for a change in the law to clarify the status of charity raffles in UK pubs and clubs.

Julia Wylie, founder of JW Law, said many such raffles were currently illegal and guidance from the Gambling Commission, which regulates raffles and lotteries, was inadequate.

She said the fact there was no proper guidance to cover these events could put charities in an awkward position. “It could stop them from being able to actively encourage the pub or business carrying out the raffle,” she said.

Because these raffles were not regulated, she said, there was no way of ensuring at least some of the proceeds went to the charity being supported.

The Gambling Act states that any lottery, including raffles, must operate under a licence, which can only be obtained by local authorities and non-commercial societies, unless it is one of three types of exempt lottery.

A business, such as a pub, can run a ‘customer lottery’ – a type of exempt lottery – but there are requirements, such as that all ticket proceeds must be used either for prizes or to cover expenses.

There is no class of exempt lottery to cover raffles run by a business where the profits would be donated to a charity. The only way a business could hold a raffle in aid of charity would be at an event where all proceeds went to the charity.

A Gambling Commission spokesman said he was unable to confirm whether charity pub raffles were legal.

NCVO calls for spending to remain neutral

Friday, September 3rd, 2010

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NCVO has made its submission to the Treasury spending review, calling on the government to ensure the net effect on voluntary and community organisations is “at least neutral”.
The document also asks the Treasury to ensure settlement letters ask departments to “be mindful of the need to strengthen civil society”, therefore looking at the impact of their spending decisions, as well as asking them to consider how they might “work with the sector to do things differently and more cost-effectively”.
The submission, written by senior policy officer James Allen (pictured), also argues for:

  • Localisation and decentralisation
  • Supporting and strengthening the Compact, with funding agreements set for at least three years
  • A level playing field for the sector when bidding for contracts
  • A radical simplification of the gift aid system
  • A wider examination of the tax system to incentivise giving and philanthropy

The umbrella body also promises to work with other support bodies and VCOs, saying it recognises that existing support services “could be rationalised to become more efficient, effective and sustainable”.
This comes is response to the government’s stated desire to improve the effectiveness of infrastructure to support frontline organisations, a consultation upon which is pending.

Charities fear multimillion pound hit to clothing donations

Friday, September 3rd, 2010

Association of Charity Shops is to hold talks with Association of Chief Police Officers to discuss ways of tackling the problem

Charities are concerned that media reports of charity clothing collection scams will reduce people’s willingness to donate items and cost them millions in lost income.

Bogus collectors have recently used the names of the Down’s Syndrome Association and the RNLI, and a BBC report this month exposed a company that claimed to collect for Breakthrough Breast Cancer in Kent.

David Moir, head of policy at the Association of Charity Shops, said the reports of scams could damage public trust.

“It is highly possible that these bogus collectors could harm the public’s confidence in giving clothes to charitable collections, and that will have a damaging affect on charities’ stock levels,” he said.

It pointed out that charities get the full value of clothes they collect or that are taken to shops, while commercial collectors gave a proportion of the value to charity that the Association of Charity Shops had calculated to be as little as 5 per cent.

 

Proposed merger of community umbrella bodies

Friday, September 3rd, 2010

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The Development Trusts Association and bassac, both of which have community-based organisations as members, are consulting about a merger which would bring together their expertise in community enterprise and community development. They say that this is not down to financial concerns but “the huge potential of a new organisation”. Bassac news item, Civil Society Media news item at http://www.civilsociety.co.uk/governance/news/content/7219/.

Visit fund to learn how to diversify income

Thursday, September 2nd, 2010

 

Only Connect, sponsored by Triodos Bank, enables voluntary organisations to visit another organisation to learn about how they have diversified their income into trading or public service delivery or by using loan finance. The visitor’s time and travel is reimbursed £150, and the host organisation gets a £200 consultation fee. Run by NCVO for organisations based in England only, current round closes 10th September, see http://www.ncvo-vol.org.uk/onlyconnect.

Government halt the Place Survey

Friday, August 27th, 2010

 

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Local Government Minister Grant Shapps has today scrapped the Place Survey, one of the largest surveys in Europe that was due to be conducted by local authorities this autumn.

Today’s move to scrap the survey is part of concerted efforts by the new Government to release councils from Whitehall control – leaving them free to respond flexibly and effectively to the needs of their residents.

It follows the scrapping of Comprehensive Area Assessments by Communities Secretary Eric Pickles in June, instead making councils more accountable to residents rather than ministers in Whitehall.

The announcement also follows on from the new Government’s plans to require councils to publish online their spending over £500; to stop Town Hall publications which compete with local newspapers; and to block the practice of councils and quangos hiring agencies to lobby Government.

The Place Survey is a postal survey conducted by every council in England. Introduced in 2008, it involves over half a million residents and is estimated to cost more than £5 million to run.

Results have been fed back to central Government and used to measure councils’ performance on a range of centrally-imposed targets.

A new regime of town hall transparency, publishing spending and service information online; http://www.communities.gov.uk/news/corporate/1606882.

Tougher rules against ‘lobbying on the rates’; http://www.communities.gov.uk/news/corporate/1666074.

People power, allowing residents to veto unwanted council tax rises; http:www.communities.gov.uk/newsstories/newsroom/1658293.

Using the internet to help end the town hall ‘non-job’; http://www.communities.gov.uk/news/corporate/1631912.

Stopping anti-competitive ‘propaganda on the rates’ killing off local newspapers; http://www.communities.gov.uk/news/corporate/1625181.

Individual budgets – issues arise for families with disabled children

Friday, August 27th, 2010

 

Six local authorities are testing individual budgets for families with disabled children, which allow families to pool money from social care, health and education sources into their accounts to use as they choose.

A government pilot aiming to give families of disabled children control over money allocated to them struggled to get funding from education sources, according to an evaluation.

But an evaluation of the pilots, commissioned by the former Department for Children, Schools and Families, said securing education funding had been particularly difficult, while getting significant investment from primary care trusts (PCTs) had also proved challenging.

The report, examning the pilots in Coventry, Derbyshire, Essex, Gateshead, Gloucestershire and Newcastle, said: “Although progress had been made with some of the PCT fund holders, they had only contributed limited funds, most of which carried restrictions. However, the biggest barriers were encountered during attempts to draw in education funding streams, where only one site had really made any form of progress.”

The report said one pilot “felt their their education colleagues had distanced themselves from the individual budget work, as they did not feel that personalisation was relevant to their area of work”.

But the research said some of the pilots had been successful in broadening the scope of their individual packages “beyond social care funds”.

It concluded that overall good progress had been made by the pilots and the range of families involved suggested that “if explained properly, individual budgets can be attractive across the social spectrum and to families with young people facing a wide range of disabilities”.

Social Franchising Support

Friday, August 20th, 2010

image Social franchising is an option for both existing social enterprises that wish to expand their businesses through replication, as well as individuals who want to set up a franchise of an existing, successful social enterprise. However, it is a relatively new model of growth and little support exists for those wishing to embark on this route.

Therefore, as part of the Big Lottery (BASIS) funded Investing in Social Enterprise Expansion programme, the Social Enterprise Coalition is delivering an innovative Social Franchising Support project. The aim of this project is to undertake detailed research into the processes and issues that surround social franchising and from this develop a comprehensive suite of support tools and resources for all social franchisors, franchisees and social enterprise business advisors.

In addition to this, the project will also undertake research into alternative scaling-up models such as licensing, joint ventures, consortia and mergers; enabling SEC to develop a solid understanding of the wider scaling-up arena and the associated support needs for social enterprises.

Contribute to this work…

SEC has joined forces with a number of key partners to deliver this project and we are currently in the research stage. So if you are interested in or have experience of social franchising or an alternative scaling-up model, they would love to hear from you.  Please contact our senior researcher, Lidija Mavra, at lidija.mavra@socialenterprise.org.uk

Small charities bear the brunt of cuts despite big society pledge.

Friday, August 20th, 2010

Prime Minister David Cameron launched his vision for the big society last month, saying the drive to empower local communities is his “great passion”.

But councils including Croydon, Greenwich and Lambeth are already slashing funding to small community groups by up to 66 per cent.

The government’s big society vision will collapse if the scale of council funding cuts to small charities under way in some areas is replicated nationwide, sector figures have warned.

Home-Start volunteer with family

CYP Now has also learned that Home-Start, the family support charity that provides home support and advice to struggling parents of under-fives, is being affected. The charity recruits about 5,000 new volunteers each year, but Home-Start UK chief executive Kay Bews said some of the 340 local Home-Start services, which each exist as small independent charities, face “dire financial circumstances”.

National Council for Voluntary Youth Services director of policy Faiza Chaudary said many of its members are experiencing deep cuts as councils see the voluntary sector as an easy target for savings. “Small, community-based organisations are already delivering the big society vision and are heavily reliant on local authority funding. If this changes these organisations will be unable to deliver services needed by young people,” she said.

Junior children’s minister Tim Loughton has claimed the voluntary sector’s local knowledge and specialist expertise makes it a crucial partner in the big society. Speaking at a parliamentary reception in June on investment in early intervention, he said: “[The voluntary sector] should be on an absolutely level playing field with the other public agencies in order to deliver the services where we need those services to be delivered.”

National Council for Voluntary Organisations head of research Karl Wilding said the smallest charities are soft targets because they have fewer resources with which to make themselves heard. “Local authorities are currently removing funding from small organisations that often give people a chance to become volunteers,” he explained. “It is that capacity that the government will need to build the big society.”

Public invited to vote on savings ideas

Friday, August 20th, 2010

Spending Challenge enters next phase

The public is being asked to vote to find the best ideas from over 44,000 submitted to the Treasury as part of the public engagement through the Spending Challenge website. The most promising ideas will be taken forward as part of the Spending Review process, which will set budgets for public services for the next four years. 

Voting will be open until 31 August 2010, in order to consider ideas before the Spending Review concludes on 20 October.

Since launching the public phase of the Spending Challenge, the Government has received an overwhelming response from the general public, with over 44,000 ideas on how to reduce spending submitted. These ideas were published recently on the website (opens in new window).

Visitors to the site will be asked to look through the ideas we’ve had and rate the ones they think have the most potential – helping us to identify the best ideas to be taken forward and investigated in further detail.   

New Charity Guide on Providing VFM

Friday, August 20th, 2010

New Philanthropy Capital publishes value test for charities

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Think tank says answers will help charities demonstrate their worth in the face of spending cuts.Think tank New Philanthropy Capital has launched a paper encouraging charities to prove their value to the deficit-cutting government.

Proving Your Worth to Whitehall uses the nine questions the Treasury will ask every Whitehall department to answer during the autumn spending review, and applies them to a charity.

They include whether an activity provides substantial economic value and whether it is essential for meeting government priorities.

The paper uses CSV’s Volunteers in Child Protection project, a scheme that provides volunteer mentors for families with children on child protection plans, to show charities how they can answer the questions.

It says that if charities can answer these questions, it will help them build a stronger case for survival in the face of spending cuts.

Martin Brookes, chief executive of NPC, said charities needed to subject themselves “to the same scrutiny faced by government departments”.

Stafford Funding Makes Volunteering More Viable

Friday, August 20th, 2010

 

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Volunteering has just become a more viable option for people with disabilities or life limiting illness with news that Stafford and District Voluntary Services (SDVS) has been successful in achieving a £4.5k grant from a national Fund. SDVS was one of only 31 organisations in the West Midlands to obtain a grant from the latest round of the Access to Volunteering Fund, a national pilot project with funding from the Office for Civil Society.

The grant will provide a range of support including providing small awards for adaptations required to enable volunteers to take up placements. The funding could also provide help for placement organisations to access, attract and retain volunteers who may need adjustments within the workplace or, for example, travel to and from the volunteering location.

The Fund remains for completed applications until 6th September, so other interested and eligible organisations within the Stafford and District area still have an opportunity to apply for a maximum of £5,000 using the website www.accesstovolunteering.org/awards or via the helpline: 03000 123 346. The website also includes case studies of successful applications.

Access to Volunteering provides funding through the Office for Civil Society and offered in three pilot areas initially, Greater London, North West and West Midlands.

One in three charities have no reserves

Friday, August 13th, 2010

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New figures from NCVO Research team suggest that one in three operating charities have no funding in reserve, and the median reserve level for those in receipt of state funding is only one month’s worth of expenditure.

The assets and reserves figures (reported in the Financial Times) suggest that drastic cuts could threaten the survival of many organisations providing vital services. (You need to register on the FT site to read the article)

Their research also shows wide variation in reserve levels for different types of voluntary organisation.  While housing associations typically hold nearly 20 months’ (19.9) worth of expenditure in reserve, at the other end of the scale this level falls to 4.5 months for employment and training organisations and only 1.4 months for playgroups and nurseries.

Commenting on the findings, Sir Stuart Etherington, Chief Executive of NCVO, said:

“These figures show how vulnerable many community and voluntary organisations will be in the testing and unpredictable times ahead.  Without a financial safety net, vital services for local people and communities will be at risk. “This really demonstrates the need for public sector funders to work with voluntary and community organisations where cuts are necessary, to make sure they are properly planned and implemented.  As the recession has driven up the need for many frontline services, it is critical that the sector retains its capacity for supporting some of the most vulnerable people in society.”

They are now examining options for taking this work forward, including in-depth qualitative research and collating case studies. For practical advice and tools to help you through the challenges ahead, please visit their Coping with Cuts pages.   Click here for more information

Zurich offers ‘cheaper’ public liability insurance to small community groups

Monday, August 9th, 2010

Offer developed with local umbrella body Navca

image Financial services provider Zurich has launched a scheme offering public liability insurance to small voluntary organisations and community groups for less than £10 a month or £75 a year.

Zurich said the policy would enable groups to purchase comprehensive public liability cover for a range of activities covering claims and losses of up to £10m.

The offer was developed in collaboration with local umbrella body Navca and is delivered by Tennyson Insurance.

A spokesman for Navca said: “As far as we understand, this is the first time such insurance has been available to community groups for less than £100 a year.”

Kevin Curley, chief executive of Navca, said in a statement: “This is a brilliant new scheme that will meet an urgent need in the communities sector.”

A spokeswoman for Zurich said that voluntary and community projects often failed to get off the ground because of the cost and complications of buying protection, which can sometimes involve going through the local council.

Big Society Bank to open in April 2011

Monday, August 9th, 2010

Government in talks with social lenders

imageThe Office of Civil Society has begun to hold meetings with social lenders to draw up a blueprint for the Big Society Bank.

A spokesman for the department said it would stage further meetings with stakeholders to improve its plans. “We’ve started to hold meetings with some organisations already, and have scheduled meetings with others,” he said.

Bevis Watts, head of business banking at Triodos Bank, said there were many questions to be answered about the bank’s structure, such as whether the money invested in the Big Society Bank would belong to the bank itself, or remain the government’s money.

“We would like the bank to be independent,” he said. “It should have the right to invest where it sees fit to strengthen the market. We’d like it to act as a cornerstone investor in new funds and products to leverage in private capital.”

John Brooks, sales and marketing director at Unity Trust Bank, said the bank should not attempt to distort the market by lending cash too quickly. He said that it might be helpful if the bank were to have only £60m when it launches in April.

“There’s a danger the bank will be deluged with bad ideas just because the cash is available,” he said.

Charity Bank information update

Friday, July 30th, 2010

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Charity Bank is offering charities and community groups a preferential rate for new loans drawn before the 31st December 2010.

Charity Bank is a not-for profit bank that offers affordable finance to third sector organisations, including those that might not be able to borrow from commercial lenders.

The preferential rate being offered is a reduction of 0.5%p.a. on its standard interest rate. Interest rates depend on size, type and length of loan but typically vary between 5.5% and 7.5%.

Since 1995 Charity Bank has made loans of £120 million to over 830 charities, social enterprises and community groups that reach 3,500,000 people through their work.

We have recently made a large amount of loans to charities and community groups in the West Midlands including some in your area (click here to see some examples)  and thought the attached details would be of interest to you and your members.

For more details, or to see if loan finance is right for your organisation please contact Charity Bank’s loan team on 01732 774050 or visit www.charitybank.org/loans. For details of Charity Bank’s savings accounts visit www.charitybank.org/savings.