21 June 2018
Recent research guided by Lloyds Bank Foundation and led by the Centre for Regional Economic and Social Research at Sheffield Hallam University and three other organisations looked at the distinctive contribution value and experiences of small and medium-sized charities in England and Wales.
Small and medium-sized charities (SMCs) – whose annual income falls between £10,000 and £1 million are a vital part of everyday life in communities across the country and they constitute 52% of all registered charities.
This research looked at the funding challenges they face as they are more likely to be adversely affected by cuts to public sector budgets and approaches to commissioning and procurement that favour economics of scale over more tailored and responsive approaches.
The SMCs are able to offer a distinctive set of services and activities in their communities that are additional to the provision of larger charities and public bodies, and often add up to more than the sum of their parts.
However many SMCs are struggling to convince funders of the need for and value of their work. The funding environment is also challenging and there is now far less money to go around.
The research findings suggest that funding should be reformed – public sector bodies should be encouraged to award SMCs with grants over contracts wherever possible – long term large grants to cover core costs and provide stability. They should also consider how SMCs can meet the needs of the different service user population.
Overall, the findings of the research identifies three distinctive features of SMCs – their service offer, their approach and their position and how these features enable them to play a vital role within their local service area. They plug gaps left by other organisations, they build person-centred relationships with clients for longer and they use their well-established networks to act as a ‘glue’ that holds communities together.
The research has also highlighted some major challenges that SMCs face in convincing public sector bodies and funders of the need for and value of their work.
With the seemingly permanent austerity challenges, funders have increasingly prioritised scale over responsiveness, and favours large charities over SMCs.
In summary, the researchers behind ‘The value of small’ are together calling for national and local action to protect, promote and develop small charities to sustain distinctiveness.
For more information please contact your usual UHY adviser or nearest UHY charity specialist.
