Charities expert calls for more collaboration in sector
23 Apr 10
Charities looking to recover from the current economic recession will be forced to seriously examine consolidating with others in the sector, according to one of the key speakers lined up for the ICAS Charity Conference on 6 May
A tightening of funds allied to the ever-increasing “contract culture” within local authorities and other governmental organisations will see a further rash of mergers and partnerships within Scotland’s charities, according to Alastair Keatinge, a partner at law firm Lindsays.
Keatinge is one of the speakers at the 2010 Charities Conference run by the Institute of Chartered Accountants of Scotland on 6 May 2010. Lindsays, which has one of Scotland’s leading charities practices, is the main sponsor of the event.
He said: “New legislation and regulation surrounding charities in Scotland has led to increased scrutiny, and tougher tests are now applied to ensure organisations meet the criteria for gaining charitable status.”
Keating said there was a great deal of competition within the sector, both in terms of attracting funding and in seeking profile for the work done. He argued that there was an increasing “contract culture” in local authorities seeking to place work, which favours larger charities that are better equipped to deliver consistent quality of service.
For example, he said, a local authority seeking to outsource some work with children is maybe more likely to be attracted to dealing with a national charity than with a small local charity which can demonstrate far less experience in the field.
Keatinge added: “In my view these pressures will lead to some significant consolidation within the sector, and we are likely to see charities take an increasingly commercial approach to this. I believe we will see charities enter into joint ventures, forge partnerships and set up other collaborative models, which have their roots in the commercial world, in order to continue to deliver.
“Charities need to put behind them their traditional reluctance to cooperate with each other. There are long held prejudices that each particular charity has a unique expertise. For example, there are over 800 charities operating in the UK in the field of autism. It is doubtful if this number is necessary and such charities should be honestly asking themselves if they could work more closely with others in the field. There is a role for both OSCR and the Charity Commission to be involved in encouraging more co-operation, joint working and mergers.”