Third sector expert Cathy Elliot, CEO of the Community Foundations for Merseyside & Lancashire, which oversees the distribution of around £2 million of grants each year on behalf of 50 partners and donors, shares her thoughts on what is happening in the sector and the impact it has on community foundations.
It's all about diversification...
We have seen a significant rise in the number of community groups and registered charities that have opted to become social enterprises in the last few years. This is largely due to a need to ensure future sustainability in the face of an increasingly challenged economic and political landscape. It represents an interesting trend with ramifications for the future.
Community at heart...
With a focus on triple-bottom-line impact (environment, people/social and securing a surplus for re-investing), social enterprises have a fantastic contribution to make. In Merseyside and Lancashire we are seeing 1,000s of tonnes of materials and items being recycled, long-term unemployed people gaining new skills, which in turn is instilling confidence that is ultimately leading to employment, as well as goods and services being offered at affordable prices to families on limited budgets, all thanks to the initiative and creativity demonstrated by our local social enterprises.
New models of financing...
Whilst the full impact on the voluntary sector of the public sector cuts is still to be seen and funding gaps for both newly set up and more established social enterprises exist, the financing community working in this sector has reacted with impressive speed. It has become much more bespoke to the needs of the increasingly diversified sector with awards and loans proving to be the most popular. All of which is welcome news, ensuring the support needed to crystallize ambitions and implement financial / business plans can be realised now to achieve growth ambitions.
Help at hand...
We have been working closely with Santander to design a new package of support for the social enterprise sector using our experience of charities and community groups to define a programme that particularly meets the needs of not-for-profits moving their funding models from donations to revenue streams.
This is a great example of the private and voluntary sectors working in partnership for social growth and to enhance communities. I encourage those in the private sector and of a philanthropic mind-set to consider joint-working and look at what opportunities there may be in their communities.
Future gazing...
We're witnessing an evolution in the charity sector with organisations sourcing innovative new ways to operate and grow in this challenging landscape. Undoubtedly, there are many opportunities to be seized and capacity for more charities to become social enterprises. It is an exciting time and we are working with our clients to support them on this journey.
