Why are charities addicted to Government funding?
By their very nature, regeneration projects are initially funded by the statutory sector. However, as the infrastructure emerges, so too, like burger vans at a fete, ‘third sector settlers’ arrive, pitch their tents and set up shop.
These may be opportunist social entrepreneurs with clear vision and relevant skills. More likely though, they are established charities seeking their next fix of statutory funding. For too many, once they start mainlining with Government cash, there is no turning back; they’re hooked.
Just as the drug addict turns to petty theft and prostitution to feed his or her habit, so too do the dependent charities loiter on the newly paved street corners hoping to turn a lucrative trick or two. Can they remember the vision, excitement and pioneering spirit that drove their founders out onto the streets? Probably not, their focus now is on pleasing the sugar daddies who pay handsomely to be told they know the answers to Britain’s social problems.
Yet as we all know deep down, statutory agencies can never really understand. Their grey suited officials mean well, but are from a very different world. Sure they visit the gutter and peer inside. Few if any dip their fingers in the fetid water to sniff for themselves the stink of deprivation they claim to know how to overcome.
Think back to the beginning. The truly pioneering social reformers, people like Booth, Cadbury and Fry, did not rely on European funding. They did not write bids to quangos. They did not strive to achieve a gender, race and demographic mix within their beneficiary groups that matched any published regeneration strategy either. Instead they followed their instinct, rolled up their sleeves and got stuck in.
Look around at how some of the largest third sector service deliverers today have almost forgotten their campaigning, membership roots. Instead they employ dispassionate professional managers, skilled at writing bids then delivering projects. Their focus is on the output measures linked to payment; they many not even hear the cries of those their founders sought to help but now don’t fit the contract target audience. It’s a business now and no one’s allowed on board to enjoy a free ride.
Of course statutory funding is important. Even the craziest idealist would not rely on our citizens to give freely enough for the Government not to need to raise money for social regeneration though taxation. But to spend that money wisely, you need to be in control. That means controlling growth.
How do you control growth when surrounded by need? Easy; you do what any successful business would do. You stick to what you know best and avoid getting distracted by what’s happening on either side of the path you’re treading. Yes it’s tough, but if you overfill your life raft everyone will drown. Save the people you care about most and let others mop up the rest.
But what if you are already addicted? What if you have grown organisationally obese and cumbersome; gorged for years on Government contracts? It’s simple. Go on a diet.
In reality, slimming down might not be the only solution. After all, there might be two or three really good potential organisations tucked between the folds of blubber. Isolate the excellence, discard the bureaucracy and create a cluster of lean, focused, enterprising organisations.
Next spread your risk. Build partnerships to reduce further your core costs and above all else, generate revenue in the real world. Set up social enterprises and create ‘social responsibility’ packages that the hard nosed corporate will buy. Above all else, put and keep yourself in a position where you can say no to the statutory funder and survive. Take their money by all means, but make sure you negotiate as equals. That way you both keep your respect and the money inevitably is more effectively spent.
ENDS
Robert Ashton is a business author, speaker, consultant and social activist. www.robertashton.co.uk
