Annex
THE STRATEGY UNIT REVIEW, "PRIVATE ACTION,
PUBLIC BENEFIT" ACTION ON DISABILITY AND DEVELOPMENT, ADD'S
RESPONSE
ADD welcomes the review and the recognition
by government of the important role that the sector plays in society.
We also welcome the recommendations for reform
and would encourage that these are tabled with parliament as soon
as possible. Framing and implementation of these reforms needs
to be taken forward in consultation with the sector and the various
network bodies eg NCVO and ACEVO etc. Clearly there is a need
for a new charity law that better reflects the nature of the sector's
work and enables this work to flourish.
We welcome the report's emphasis on demonstrating
that our aims are being met through emphasis on outcomes and more
holistic reporting methods including bench-marking between similar
organisations.
Public confidence in the sector is important
and we should be striving to provide the right information to
ensure trust in our work.
NAME—NOT
"CHARITY"
We would welcome a change away from using the
word "charity" that is seen by many as based on an outdated
model and approach. For organizations such as ADD who are working
internationally and who are pursuing a rights-based approach to
our work, being called a registered "charity" can cause
confusion.
Voluntary sector also gives a message that our
work is carried out by volunteers which in many cases it is not.
Social enterprise is not relevant for organisations who are not
providing services or generating returns from trading.
We would recommend using the community or not
for profit sector or civil society.
PUBLIC BENEFIT
ADD welcomes the new purposes for not for profit
activity in the public benefit and in particular the addition
of "prevention" of poverty and the promotion of human
rights.
CAMPAIGNING
We welcome the recommendations regarding this.
ADD supports disabled people's organisations in Africa and Asia
to campaign for their rights and inclusion in society. Campaigning
groups seek enabling and enforcing legislation as this is vital
step if discrimination and marginalisation is to be overcome.
One of the roles of civil society in a democratic
system is to hold governments accountable and advocacy and campaigning
is a way of ensuring that the public's interests are heard.
TRADING
We can see the advantages in being able to trade
without establishing a trading company and welcome this. However
it will be important for the new regulator to provide advice to
organisations about this to ensure a failed business initiative
does not effect the public benefit work of the organisation.
NEW LEGAL
FORM
The introduction of a new form of incorporation
will hopefully reduce administration by providing a single registration.
Allowing an organisation to be registered once to receive benefits
associated with public interest status while at the same time
protecting trustees and staff form personal liability is welcomed.
The name Charitable Incorporated Organisation
needs changing—perhaps Not For Profit Incorporated Organisation.
ACCOUNTABILITY AND
PROVISION OF
INFORMATION
ADD welcomes the review's recommendations in
these areas. We recognise the need for public accountability as
well as the importance of providing useful information relating
to the achievements and long term outcomes and impact of an organisation's
work.
We also agree that this information should be
based on shared good practice and "bench marking" between
like orgnaisations rather than league tables. Given the wide scope
of activities carried out in the sector, league tables across
all would be meaningless and confusing.
STANDARD INFORMATION
RETURN
A Standard Information Return (SIR) should be
a useful management tool for organisations themselves as well
as providing better information to the public.
Greater emphasis on outcomes is welcomed—however
this will be an area that many organisations will need help in.
There is a danger of going down the "measurement" route
and forgetting that judgements and trust are also needed.
However it is important that public confidence
in the sector is maintained and if SORP and the audited accounts
of charities are not seen by the public as helpful this needs
to be looked into. The sector is already embracing a wide range
of quality and evaluation models for management (and external
purposes) to help us learn how better to achieve our objectives
efficiently, effectively and economically.
The use of an auditor to check the SIR and make
quality assessments is likely to be beyond the current role of
external auditors.
APPORTIONING COSTS
AND EXPENDITURE
As the recent publication from ACEVO "Funding
Our Future II" outlines it is important for the sector to
be clear about our costs, to ensure these are proportional—based
on bench marking against our colleagues and competitors and to
apportion these cost appropriately. This is vital for the health
of the sector to ensure that the infrastructure of organisations
is being invested in and that outcomes are being realised.
MEASURING AND
IMPROVING PERFORMANCE
The international development organizations
have been working on the issue of better demonstration of impact
and sustainable change for many years. Measuring long term impact
is much more difficult than measuring outputs as long term change
may well be contributed to by an organisation's work but may well
not be directly attributable.
However it is important that organisations can
demonstrate achievement of their aims while not getting caught
up in processes which consume more energy than they deliver in
terms of improved performance.
REVIEW OF
THE CHARITY
COMMISSION
A new act, new definitions, new terminology
and new approaches to delivering public interest objectives will
no doubt require a review and renaming of the commission.
ADD has found the commission a useful source
of information and advice as well as being the regulator and hope
that both functions can still be provided as is suggested in the
recommendation for advice on mergers.
FUNDRAISING
Regulation to maintain public confidence and
promote good practice in the sector is important. Where possible
existing codes of good practice and structures such as those provided
by the Institute of Fundraisers and the Public Fundraising Regulatory
body, PFRA, should be built on as much work has already gone into
this.
GOVERNANCE AND
TRUSTEESHIP
Good governance and effective recruitment and
induction of trustees is essential to the effective operation
of organisations, and steps to encourage diversity on boards and
an equal opportunities approach to selection and training are
welcomed.
Paying trustees to carry out professional services
is an issue that may be difficult for organisations to manage
and the review comments on the conflict of interest that could
result. Furthermore in the case of a grievance by either party
the conflict of a trustee being employer and employee may be very
damaging.
VAT-EXEMPTION
The review does not mention the issue of VAT.
This is of major concern to the sector and needs re-visiting.
Good luck with the next stage and here's to
seeing an enabling framework in place that promotes the work of
the community sector.
Barbara Frost
Chief Executive, Action on Disability and Development
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