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‘Organisations Competing for Funds’ – Notes from Andrew Devon’s Talk on How To Get Funding:

May 10, 2010

Organisations Competing for Funds

 

Statutory Sector

The statutory sector involves all the organisations that are set up, controlled and funded by the government, for example Councils, Local Authorities and NHS hospitals.  The statutory sector is funded by people who pay taxes and national insurance etc.  This is different from the independent sector which involves organisations being run by business people who are usually in it to make profit. 

Charity Sector

The charity sector is also known as the voluntary sector, the voluntary and community sector (VCS) and the third sector.  It exists between the private and public sectors. The charity industry continues to grow significantly; there has been a 26% increase in the amount of employees over the last decade. It also has a third of degree holders which is a higher proportion than both the public and the private sectors. The charity sector’s income is just under £28billion and just over a third of this comes from statutory sources. (The UK Voluntary Sector Almanac, National Council for Voluntary Organisations (NCVO))

There are approximately 211,586 charities in the UK as follows:

  • England & Wales – 168,500 with an income of 49.9 billion
  • Scotland – 23,806 with an income of 12.9 billion
  • Northern Ireland – no exact record but about 10,000 charities but no estimate of income

 

Social Enterprises

Social enterprises are businesses driven by a social or environmental purpose. There are 62,000 of them in the UK, contributing over £24bn to the economy, employing approximately 800,000 people (2005-2007 data from the Annual Survey of Small Business UK).   As with all businesses, they compete to deliver goods and services. The difference is that social purpose is at the very heart of what they do, and the profits they make are reinvested towards achieving that purpose. Well known examples of social enterprises include The Big Issue, Jamie Oliver’s restaurant Fifteen, and the fair-trade chocolate company Divine Chocolate.  The government defines social enterprises as “businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.”  Social enterprises operate in almost every industry in the UK, from health and social care to renewable energy, from retail to recycling, from employment to sport, from housing to education. Whatever they do, they do it differently from typical business, because they are driven by a social and/or environmental mission, and they are focused on the community they serve.  In a recent survey of social enterprises 45% of respondents said that ‘putting something back into the community’ was their reason for setting up a social enterprise.

Community Interest Companies

Community Interest Companies (CICs) are limited companies, with special additional features, created for the use of people who want to conduct a business or other activity for community benefit, and not purely for private advantage. This is achieved by a “community interest test” and “asset lock”, which ensures that the CIC is established for community purposes and the assets and profits are dedicated to these purposes. Registration of a company as a CIC has to be approved by the Regulator who also has a continuing monitoring and enforcement role.

 

Schools and Universities

Universities, colleges, secondary, junior, infant and nursery schools.  They are deemed to be part of the statutory sector.  However they do not cover fee paying private schools.

Individuals

  • People who have fallen on hard times and apply for grants from charitable trusts or statutory grants
  • People who need funding to do a fundraising event
  • People who require funding to go on for example a university course

Andrew Devon runs Salvia Fundraising, www.salviafundraising.co.uk – a fundraising and training consultancy, based in East Sussex, helping charities and other not-for-profit organisations throughout the UK. Andrew’s main experience is in raising funds from charitable trusts and foundations. He also has experience in raising funds from the statutory sector, companies, through Church groups, the public, door-to-door and street collections, events, and from Europe.

To contact Andrew email andrewd@salviafundraising.co.uk or phone 01273 207626

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