In December and January, SAVO invited its member organisations to local meetings to share their views and concerns, together with helping to construct a picture of the pressures and opportunities facing the Voluntary and Community Sector in Suffolk.

Meetings were held in Bury St Edmunds, Haverhill, Ipswich, Mid Suffolk, Waveney and Suffolk Coastal and some members responded by email. The discussions ranged from key issues that are affecting the Sector, to improvements SAVO can make to ensure that, as a VCS infrastructure organisation, it delivers a high quality service to the Sector.

The analysis below synthesises the comments, ideas and suggestions from Members’ responses:

The Economy/Funding Climate

Nationally, the latest figures (from 2003/04) indicate that a third of the sector’s[i] income came from the public sector, 35% came from individuals and 1% came from the private sector. In addition, 10% came from other third sector organisations (e.g. grantmaking trusts) and 15% was internally generated (through trading activities). In 2005/06 the general public gave £8.9 billion to charity, a slight increase over the previous year and this is expected to rise gradually.[ii]

The general overview within Suffolk, is that of a ‘faltering economy’ for the voluntary and community sector. It is recognised that funding is being squeezed from all sides, especially with the changes to the way the County Council and Primary Care Trusts are requiring a ‘more for less’ agenda of public service delivery. It is envisaged that unless there is timely two-way communication and robust dialogue as to the proposed changes, the VCS will be forced to operate in a reactive, rather than proactive way. This potentially means that VCS organisations will be forced to make difficult decisions, some closing down or merging with others to ensure sustainability. It is also recognised that the pressure on public sector funding will continue for the medium term, leading to an uncertain few years ahead.

This climate impacts on the innovation and creativity of the Sector, which can only plan for the short term. Staff, operating in a climate of redundancy risk, have increased pressure to deliver high-quality services with less resources available. VCS organisations are finding it difficult to work within their constitutions, having to change and adapt to chase the funding and meet the priorities of the Public Sector. The ‘funder – fundee’ relationship is unequal, with increased demands placed on the Sector. The Sector has concerns about the loss of its independence and flexibility, with a danger of being drawn into becoming quasi public services.

There are opportunities emerging for VCS delivery of public services, however, the smaller and medium sized organisations are having to run to catch up with an understanding of the new climate of procurement and commissioning, without the resources the larger VCS organisations have. Three-year contracts, which allow sustainability of the Sector, are being cut to a yearly basis as continuous changes are made to criteria and the move towards tendering. The VCS are also experiencing increased competition from the Private Sector.

Traditional grant funding is also changing. Grant makers and other funders will continue to become more outcomes/outputs orientated, with increasing scrutiny of quality and performance. This is laudable, but the Sector will need access to more training and resources to meet monitoring and quality requirements.

There is, therefore, a greater emphasis on securing independent sources of income, especially public donations. This will require intensive and dedicated fundraising, with increasing competition from highly professional international and national charities and already crowded local demands on the public purse. There is a requirement to developing a lasting relationship with individuals as donors. More innovative ways of fundraising are coming to the fore, tapping into Corporate Social Responsibility and web-based technology, such as EveryClick.Com.

It is foreseen that the larger VCS organisations will continue to grow, as they have more resources to dedicate to fundraising, bid-writing and tendering. The smaller organisations will stay small or indeed get smaller. The medium organisations will be pressurized from all sides, either migrating to take on large contracts, or downsize to conserve resources. Groups are facing growing demands for services that cannot be met because of lack of funding – services are being rationed, spread too thinly or deferred. There needs to be a better understanding by the Public Sector of the ‘added value’ the VCS brings and the consequences in cutting funding to a service that has a knock-on effect on many others.

Funding, therefore, is the most pressing issue that VCS organisations face. There is a call for development officers in bigger organisations to get better/more professional qualifications and ensure that the whole of Suffolk has access to their services. There is a growing need to enter into collaborative activity, but this is a difficult area to develop.

The People

Volunteers

As ever, VCS organisations are finding the recruitment and retention of volunteers difficult. Volunteering will only stablise or increase if groups become more adept at the recruitment, support and management of their volunteers, understanding and responding to their needs. The societal focus on the individual, on extending working life, the impact of an ageing population and emphasis on work in the work/life balance are negative factors. The Government support, however, for active citizenship is a positive.

There is a need to sophisticate the message about volunteering. One view held is that ‘traditional volunteering’ is declining, with a greater move to stimulate and incubate ‘community resource’. The use of web-based technology, such as ‘Do-It’ can tap into new markets. The growing ‘cash-rich’ but ‘time-poor’ population should be engaged in innovative ways.

Staff

The recruitment and retention of staffing will continue to be problematic in a tight labour market. VCS organisations will have to look hard at employment practices and ‘packages’ they can offer to remain competitive. Traditionally, the VCS has been seen as a lower paid sector.

The skills deficit in the labour market is a negative factor. Employers are often unaware of training opportunities and there are few VCS tailored higher-level qualifications. The staff training budget is often the first to be squeezed, in a climate of uncertain funding.

Key staff and managers are being stretched taut by the multiple demands made on their time; demands that require a very broad skills set. It is also difficult for VCS organisations to keep up with changing employment laws.

Trustees

There is an on-going difficulty in recruiting Trustees for many of same reasons given above, plus concerns about the financial onus on being a Trustee of a charity. There is a growing need to support and develop the Trustee Board to ensure the VCS is governed well in the current climate; whole organisations are at risk due to poor governance and business planning. The impact of the new Charities Act may focus attention more on structure and governance. Trustees are resistant to training, relying too heavily on staff and too many of them are unaware of, or not proactive in their responsibilities.

Training and safeguarding

The training of staff, volunteers and trustees across VCS organisations is an issue. The first hurdle is to get people to recognise that they need training and the second to find and access high-quality, affordable training.

Having to be checked by the Criminal Records Bureau is a major determent in the recruitment of volunteers and trustees. There is uncertainty around the portability of CRBs and in what situations they are actually required.

Community Cohesion

As collective fear and suspicion are likely to be perceptions that continue to grow (fuelled by media coverage on immigration and terrorism), there is greater pressure on voluntary and community groups to positively work at community cohesion. The levels of crime and fear of crime (though low in Suffolk) is likely to continue to drive communities into themselves. The celebration of diversity can help counter some of these negatives. There is a need for integration not homogenisation.

The Public Sector Agenda

The current climate of debate around Pathfinder verses Unitary, could have long-term effects on the VCS. These have not all been thought through or discussed. Local VCS organisations are unaware of the effects these changes should mean to the way they are funded or operated. At some levels, changes will be positive, but it is not possible to foresee what the long-term effects will be. There is potential damage to the leadership roles of local authorities, as they enter into ‘a tug of war’ between themselves.

Health services continue to be in a parlous state, as two new Primary Care Trusts settle into Suffolk, under a new Strategic Health Authority. Changes to staff, locations and services, mean that the relationship with the VCS has to be rebuilt from scratch. There is, however, a willingness from the PCTs to strengthen communication and relationships between the sectors. The cuts to services and outsourcing as an ongoing theme do present opportunities for VCS groups, who develop services due to need and work where there are gaps in services.

All public sector agencies are under increasing pressure to ‘consult/engage’ on their agendas with both the local community and the VCS. The agenda is shifting to local governance – the Local Government White Paper speaks of ‘placeshaping’. This means constant consultation briefings, events and meetings and for the VCS organisations as community leaders the pressure will hit us first.

The shift towards individualised budgets are of grave concern to SAVO members and the planning of their services. The model is not robust or achievable. If services are not supported by service level agreements, there will be few services for individuals to purchase from! The concept of ‘Full Cost Recovery’ is laudable, but not always achievable. VCS organisations must, however, be able to calculate the actual cost of developing and delivering a service, to make informed decisions. This, as a concept, needs to be explained to smaller groups.

Suffolk County Council

The Council is viewed as being paternalistic and exploitative of the VCS. General feeling is of an institutional lack of respect for the work of the Sector. The Council cannot quantify their expenditure on services provided by the VCS and there is a clear lack of communication between the Directorates. There are efforts being made to address these with the appointment of a corporate lead within the Council and formation of a VCS advisory group, which cuts across the directorates, and employing a VCS relationship manager.

That the County Council is only one funder of the VCS economy is not taken into consideration when changes are made to service level agreements. One particular example has been the inability to coordinate service funding between Supporting People and Adult and Community Services.

Local Strategic Partnerships and the Local Area Agreement

Generally the wider VCS do not understand multiagency partnerships and what they are trying to achieve. It is unrealistic that the whole Sector can be engaged in their delivery, but the Sector needs to have a better understanding of the policy decisions that will shape Suffolk in the future.

It is recognised that VCS infrastructure plays an important part in representing the VCS on these bodies, but that communication is very weak into the Sector. Much more effort from public sector agencies and the VCS infrastructure organisations is required to ensure effective VCS engagement.

There is a need for district and borough councils, as lead partners of LSPs, to become more intelligent about the activities of the VCS. For example, why appoint a community development officer when they could be supporting the local VCS infrastructure?

The Impact of Technology

The impact and the potential of the Internet is beginning to bite in our sector. Whilst access to basic ICT is now widespread, the sector is the digital ‘poorer cousin’ in being able to utilise all the benefits. Successful organisations will probably be identifiable as having clear and dynamic ICT strategies in relation to their beneficiaries, services, communications, workforce and governance. Setting an ICT budget each year is vital, but not widespread enough in the Sector.

Websites are now seen as an integral part of an organisation, to advertise services and explain what an organisation does. In an ever competitive world, there is a balance between a high-tech site that has high costs to maintain, and actually being able to provide clients with the information they require. Dedicating regular time and resources to the website is important. However, there are so many sites being developed that duplication is rife.

There is a requirement to pool together to source cheaper deals in terms of ICT equipment and stationery. This should be led by VCS infrastructure organisations.

Ethical Issues

The pressure of economics and service demands will bring pressure on organisations’ adherence to their purpose. The increasingly prescribed funding parameters may promote mission drift towards serving the agendas of others. The societal changes, such as changing demographics and the growth in economic migrants, may impact on how groups develop services.

The Government direction and legislation is likely to be maintained with the new leadership from June 2007. The increase in regulation, such as in employment matters, will impact as much on the Voluntary and Community Sector as others. The Charities Act, now law, will introduce new forms of charity and potentially reduce bureaucracy (according to the Charity Commission). New forms of charities, such as CICs and the development of social enterprises could impact on other VCS organisations. The VCS should dedicate time to developing themselves as ‘enterprising voluntary sector organisations’.

The Environment Agenda

Suffolk is moving to embrace a greener agenda, which will provide both opportunities and demands on the Sector. This reflects wider pressures, which will require changes to services, budgeting and planning by groups.

The role of VCS Infrastructure in Suffolk

Communication and Campaigning

Due to the current climate, VCS organisations will need skills in campaigning, more now than ever. VCS infrastructure organisations need to be stronger in supporting campaigning – but not necessarily being the campaigner. The lack of understanding of ‘Partnerships’ is concerning; the VCS have not traditionally worked together and feel threatened by other organisations.

More communication is required, both to the wider VCS about the issues and strategies that are being developed and to the public sector on the implications these have to the Sector. More effective communication methods are needed, with a fine balance between essential knowledge versus too many documents to read.

There was a desire expressed for SAVO to be more visible and proactive in lobbying of local authority councillors, especially county councillors, to raise mutual awareness and understanding and closer working at all levels throughout the county.

Quality & Standards/Research

There is a need to promote quality, best practice and standards amongst the wider VCS. Good benchmarks should be encouraged, to be replicated to avoid channelling too much resource into the growing fragmentation of organisations/approaches. There is a growing need to support the development of performance management. A recognition and greater understanding of the measurement of soft outcomes is important.

Service Delivery

Many VCS organisations have developed their own routes to additional support. SAVO and other VCS infrastructure organisations do not have to offer a ‘cure-all’ for everything. There is, however, a requirement for VCS infrastructure to proactively seek out gaps in services and shape their resources to meet these. The wider VCS organisations do not know what infrastructure can offer them and there is generally a need for infrastructure groups to communicate their offer and rebuild lost trust.

One comment was that, “They (infrastructure organisations) appear to be ever-duplicating activities and in so doing, absorbing and wasting precious funding that could be passed to front-line services!” Local Infrastructure Partnerships, operating at a district level, have a critical role in the communications chain, especially in disseminating policy and information. It is viewed that these Local Infrastructure Partnerships are a good model for local collaboration, but still have a long way to go to meet the expectation that is being generated.

There are major concerns over whether Change Up has made a difference. Other concerns voiced are around VCS infrastructure offering services to the sector on one hand, but being a front-line service deliverer, in direct competition for funding on the other. More time should be dedicated to finding out the needs of the wider VCS and engaging with them at a local level.

A strong approach is required in protecting local organisations from other national and regional ones ‘parachuting’ into Suffolk. There is a need to buy into the concept of ‘Suffolk PLC’ and the requirement to preserve local services as they reinvest into both the local community and Suffolk’s economy.

__________________