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Ruth Driscoll
National Council for Voluntary Organisations (NCVO)
Realising the potential of VCS
partnerships to improve public sector
outcomes at local level
What is the voluntary sector?
Charity deserts?
• Knowledge of local communities, their needs and how to meet
them.
• Expertise in delivering holistic, personalised services for people
with complex needs.
• Value for money through preventative focus and social value
operating model.
Improving outcomes by shaping and
delivering services
Pre-procurement dialogue
Assess the population’s
needs
Consider service design
Understand and develop the supplier
base
Engaging with the supplier market to::
= high quality services
Case study 1
Connected Care model of community-led commissioning
Communities involved in the
design and delivery of services
Services are more efficient = significant net benefit to the public purse
For every £1 invested a
return of £4.44 was achieved
When quality of life is
accounted for: £14.07 for every £1 invested
PQQs and ITTs
13 out of 35 respondents to a recent NCVO survey said they spend more than four weeks per year completing PQQs and tenders
31 out of 46 said the bureaucracy of procurement procedures and paperwork has prevented their organisation from bidding for work
One respondent noted how they had to complete tender documentation 102 pages long
A youth association applying to be added to a Framework of suppliers had to complete a 49 page PQQ and 99 page full tender, before being told they were unsuccessful
An organisation applying for a £10k grant for arts activity was asked to produce their latest AGM board minutes and explain what is already allocated within their reserves of
£4m
Income sources
2000 – 2012
(£ billions, real
terms)
Funding to the voluntary sector
Source: UK Civil Society Almanac 2014
Contracts replacing grants
The significance of small
Contracts getting larger
= fewer charities
able to bid
Diminution of local
knowledge and
expertise!
Grants and service contracts in the mix
Healthy market of service provision
Grants
may be the most appropriate way of funding charities to deliver services at a local level – particularly if the
service is niche, small scale and/or innovative
Service contract
may be more appropriate where the commissioner wants the provider to
fulfil a detailed specification
Commissioning for social value
A recent survey by Compact Voice found that almost 90 percent
of voluntary sector respondents believe that public bodies
focus on lower cost rather than social
value when funding
The value of volunteering
Proportion of people
formally
volunteering, 2001 –
2012/13 (% of
respondents)
Local economic value
UK voluntary organisations spend around £17.7bn on
goods and services each year -similar to the NHS’s spending
power
UK voluntary organisations employ 793,000 people, around
2.7% UK workforce
75% have local focus and contribute to local economic
growth by attracting investment, creating local jobs and spending
on local goods and services
Case study 2
Blue Sky Development
delivers ground maintenance and
recycling contracts for public bodies
Only employs people who have recently come out of prison,
enabling them to into long-term employment
and reducing the likelihood of reoffending
One prison place costs
approximately £41,000 per year =
Blue Sky is potentially saving millions of pounds to the public purse
49% of Blue Sky’s employees have
gone on to further employment
• Strengthen political leadership and ‘buy in’ for VCS partnerships at all levels inc procurement and finance, and elected members
• Launch and maintain a regular and strategic dialogue with the voluntary sector e.g. using Compact or local umbrella body
• Involve local organisations in identifying local priorities, designing services, and M&E
• Support voluntary organisations to compete for contracts e.g. meet the commissioner days, publicity through local CVS
• Keep ITTs and other requirements proportionate to size and complexity of contract or grant
• Choose the most appropriate funding model for the job: Funding mix should include grants and service contracts, not just large PBR contracts
Tips for realising the potential of the
voluntary sector to improve outcomes