Third Sector to stick together to beat the crunch…

Acevo chief executive, Stephen Bubb, has this week urged Third Sector organisations to stick together during the current economic crisis and warned they need to be prepared to try out new approaches.

 

According to Bubb, speaking at the Charities Aid Foundation’s Funding the Future Conference, Third Sector groups should be looking to form alliances with other similar charities, voluntary groups and social enterprises if they want to survive the next few years.

 

Bubb flagged up the Disasters Emergency Committee, an umbrella group comprising 13 UK charities who work in humanitarian and emergency aid, as a model of best practice, claiming whenever an international crisis occurs they work together effectively.

 

With the recession undeniably shaping up to be an international crisis – it’s time for the Third Sector to work together too…

 

Source: Acevo

Regional networks safe for another two years

Good news this week for the nine black and minority ethnic (BME) regional networks across England.  Government plans to pull the plug on vital network funding as early as March 2009 have been dashed and a £1.5 million reprieve is in the pipeline.

 

The proposed funding, provided by the government and third sector support agency Capacitybuilders, will secure the future of BME and more generalist regional networks for another two years and will ensure they can continue to deliver and influence government policy effectively. 

 

Third Sector bodies have spoken out in unison about this proposed reprieve.  Many have claimed the funding is “vital” if the voluntary sector is to continue to be the voice of England’s regions and have also suggested that, given the current economic climate, regional plans on how to tackle the looming recession are a must.

 

Source: Third Sector

Third sector representatives present survey findings

This week will see a number of third sector representatives present survey findings to the third sector minister, Kevin Brennan and the Treasury minister, Paul Myners.

 

Leaders from the NCVO, Acevo, the Charity Finance Director’s Group and the Charities Aid Foundation will present figures outlining how much charities have lost, and still stand to loose, in the Icelandic bank collapse.

 

It is hoped the results, gathered from an anonymous survey carried out throughout October to assess the scale of the sector’s losses, will ensure that charities are afforded the same protection as local authorities and individuals and won’t lose out as a result of the struggling economy.

 

Source: Acevo

Local authorities warned not to shut down voluntary sector spending

In the uncertain wake of the Icelandic bank collapse, chief executive body Acevo and community sector partnership Community Alliance, are urging all local authorities to resist the temptation to ‘squeeze’ their spending on the voluntary sector.

 

Fearful of a knee-jerk reaction to the current economic crisis which could see local authorities cut back on their grants to the voluntary sector and slash their contracts with third sector organisations, Acevo chief executive, Stephen Bubb, has warned any cuts now could spell disaster.

 

He went on to suggest that instead of making small charities and voluntary and community groups the next victims of the economic crisis, local authorities need to recognise that it is now that the services of third sector organisations are needed the most.

 

Source: Acevo

17.10.08 (1)

Reassurance for smaller charities caught in credit crunch crisis…

 

Speaking on behalf of Gordon Brown at Prime Minister’s Questions yesterday, Harriet Harmon, Leader of the House of Commons, reassured small charities that any funds they have deposited in Icelandic banks are safe.  According to Harmon, small charities would receive the same protection as individuals, with any assets up to the value of £50,000 being protected against loss.

 

This confirmation comes at the end of a turbulent week for the voluntary and charity sectors.  Voluntary groups and charitable organisations have reacted with frustration and disappointment at the government’s apparent lack of concern for them and spoken out about the “serious threat” of the credit crunch on their existence.

 

Harmon went on to add that work was also being carried out on behalf of larger charities.  It is hoped that a cash injection of £100 million and the freezing of Icelandic bank assets will safeguard any deposits belonging to larger charitable organisations.

 

Read the latest guidance from the Charity Commission on this matter here:

 

http://www.charity-commission.gov.uk/news/ice.asp

 

Source: Charity Commission

15.10.08 (2)

Government blanks Third Sector as credit crunch escalates…

 

Third sector groups have reacted with anger and disappointment this week after Chancellor Alistair Darling failed to respond to pleas to ensure the charity and voluntary sectors receive the same protection as local authorities and individuals during the current economic crisis.

 

In particular, the charity sector is calling for all deposits of charity money to be fully guaranteed in the wake of the Icelandic bank collapse – currently around £230 million belonging to nearly a hundred UK charities is at risk of being lost.  According to Charities Aid Foundation chief executive, John Low, refusing to do this could have “catastrophic” effects.

 

Source: Charities Aid Foundation

14.10.08 (1)

NAVCA call for info!

 

Third Sector advice and information body, NAVCA, are urging all local infrastructure organisations and community and voluntary groups to share their experiences of the current economic crisis.

 

NAVCA are keen to hear about any issues that are impacting on your local area and the workings of your local third sector organisations:

 

•Are organisations where you are from concerned about the loss of deposited funds due to the banking collapse?  Has your organisation, or an organisation you know, lost funds?

•Are you finding that the credit crunch and the economic crisis has led to increased pressure on your organisation – especially if you run an advice service, a helpline or provide counselling?

•As a local infrastructure organisation, what are you and your strategic partners doing in response to the current economic crisis?  For example, are you considering transferring funds from lower priority service providers to frontline organisations that are currently under pressure?

 

Whatever your story, NAVCA wants to hear from you! Share information on what’s happening in your local area by emailing Kevin Curley at kevin.curley@navca.org.uk.

 

For further information visit:

 

http://www.navca.org.uk/news/economy.htm

 

 

Source: National Association for Voluntary and Community Action

13.10.08 (2)

Charities lose money in Iceland bank collapse…

 

Yet more third sector credit crunch woes were brought to light late last week.

 

According to third sector leader’s representative body, Acevo, reports have been received that up to three charities have lost reserves totalling £25 million in the wake of the banking collapse in Iceland.  The organisations, as of yet unnamed, are suspected to have lost funds of £11 million, £10 million and £4 million respectively, after depositing their money in Icelandic banks.

 

The sector has responded to this news by calling for government support.  According to Acevo chief executive, Stephen Bubb, the government must now work hard to ensure the same protection that individual savers receive is extended to charities, voluntary groups and the third sector as a whole.  Stuart Etherington, NCVO chief executive, also called for a “robust plan” in order to face the difficult economic times ahead.

 

Source: Third Sector

09.10.08 (1)

Emergency support for sector?

 

This week Acevo chief executive Stephen Bubb has urged both Gordon Brown and Alistair Darling to take urgent action in order to secure the future of the voluntary sector.

 

Troubled by the economic downturn, Bubb has demanded that the government fork out £500 million of emergency financial support for the sector and has insisted that they be represented on the newly-formed National Economic Council.  According to Bubb, it’s not just the banks that should be receiving the government’s help and attention during this time of economic turmoil, especially as charities and community organisations look set to play a key role in helping everyday people manage the effects of recession. 

 

Not everyone in the sector seems to agree with Bubb’s strong opinions, however.  Stuart Etherington, chief executive of NCVO, dismissed Bubb’s request for emergency financial support, but did assert that the local voluntary sector will now need to shift its priorities in order to weather the credit crunch storm – working more closely with local government and focusing more of its activities on issues such as poverty, debt, homelessness and advice services.

 

Source: Third Sector

24.09.08 (1)

Credit crunches for Voluntary Sector?

 

It seems no one is safe from the credit crunch these days – least of all the voluntary sector.

 

In troubled times that have seen the collapse of finance giants Lehman Brothers and travel company XL, and an eleventh-hour merger between Lloyds TSB and HBOS, UK voluntary organisations are bracing themselves for a drastic drop off in corporate sponsorship and volunteering hours.

 

Many voluntary organisations rely heavily on large annual donations from blockbuster corporate firms and make use of thousands of their workers as sponsored volunteers. But with even tighter economic conditions forecast, these kind of handouts look set to become a thing of the past.

 

Speaking this week, David Emerson, Chief Executive of the Association of Charitable Foundations, suggested it might not be time to panic just yet, however.  He noted that large donations are often given to voluntary organisations years in advance and proposed that any changes for the sector are likely to “filter through slowly”.

 

Source: Third Sector