Last week, I was pleased to speak about leadership at the Somerset VCSE Forum. The day was about innovation and collaboration for charity leaders. I wanted to address the loss of confidence that I see and feel in the sector. I understand why this is. The negative press about charities and charity CEOs; and the rising demand for support amidst the fall in funding, all mean it is tough to lead a charity right now. It’s easy to feel fearful rather than confident.
Firstly, we have to remember that funders don’t really do anything. Funders will have a mission, such as to end poverty or improve the lives of care leavers or promote justice, but they need charities to deliver that for them. So, what any funder is looking for is an organisation that is good at what they do and is going to survive long enough to deliver, not just this year, but in the future.
There are a number of frameworks that set out what good looks like. For example, NPC’s guide “what makes a good charity” covers these 4 areas: purpose, impact practice, people and finance and operations (see link below). Or quality frameworks like PQASSO are used as the measure of what good is. But all funders will have different ways of trying to assess ‘what is good’ when making decisions about allocating funding.
But because of increased competition for funding, there can easily be two groups seeking funding and looking equally good – both fit the criteria, serve a local need, have all their policies in place, have a business plan, a committed group of Trustees, and can report on their outcomes. So what happens now? Who stands out?
One difference is confidence.
Remember that charities are the experts. Yes, funders have an overview of what is going on – but they don’t have lived experience of delivery. A charity will know the local area, can listen to what people are saying, know what works and what doesn’t. Funders need to be told about your area of expertise.
So it is better for a confident charity to tell a funder: “we work with 50 clients because we have found that (given the complexity of their needs and the intensity of our work) that is the maximum caseload staff can manage. If we support more than that, then quality suffers and the outcomes are not as good.” Rather than the charity that lacks confidence, trying to please a funder by expanding numbers. Seeking direction from a funder is a common issue where so much rides on securing funding. I often meet charities that ask “would it look better if we helped more people?” when what I need to be told is why they do what they do and why this makes them ‘good’.
http://www.thinknpc.org/publications/good-charity/
Emma Beeston Consultancy advises funders and philanthropists on giving strategies and processes; researching and scoping options; selecting causes and charities; assessments and impact monitoring. www.emmabeeston.co.uk ; emma@emmabeeston.co.uk; @emmabeeston01