Blogs/Vlogs

The Charity sector - a valuable UK asset?

14 October 2019

Recently the Charity Commission published a paper discussing the value of the Charity Sector.

Overall the report concluded that charities should be maximising their public value through activities that build public support.

There are 168,000 charities in England and Wales. Studies suggest the sector accounts for around 0.9 million jobs and over £15bn in GDP. However, perhaps more important is the social value created.  This can fall into five distinct categories.

1. Direct value to the people who are in receipt of charitable services

This means those who are specifically identified in the defined purpose of the charity (e.g. vulnerable children).

2. Value to members of the public who act as volunteers for charities

Those who give their time and, in turn, derive value linked to the services they deliver.

3. Wider value to members of the public who donate to charities, beyond the value of their donation

Who, like volunteers, create and derive value directly linked to the services provided but also may derive value from a range of less tangible impacts on themselves including everything from their social standing to tax relief to emotional wellbeing.

4. Wider value to the employees of charities, beyond their salaries

As many charity staff willingly earn less than the market rates to aid the charity.

5. Wider benefit to society through their broad role in society as distinct to their specific impacts on individuals

Charities make wider contributions through their participation in public and private debates relevant to their services, in providing an alternative point of view from private and public sector organisations.

The House of Lords Select Committee on charities said, “Charities are the eyes, ears and conscience of society. They mobilise; they provide; they inspire; they advocate and they unite." This mirrors my personal view that charities are an enormous asset to the UK, although the benefits are as much subjective as objective.

So if you are involved in a charity, how can you ensure you are adding value and where can you get help?

As well as focusing on the five areas of social value above, meeting public expectations is key. The Charity Commission website has a range of tools and guidance to assist you, including finance, governance, management, staff and volunteers, and fundraising.

If you would like to discuss this, or any aspect of your charity, please contact me or one of our Charity and Not-for-Profit Sector Team.

Alternatively, you can read more about the services we provide to charities here.

Let's talk! Send an enquiry to your local UHY expert.