Charities play a unique role in society. Being squarely focused on vision and mission charities put simply, seek to serve client groups or promote a cause which is ultimately about making life better. For a charity being focused on why they exist is fundamental to everything. They are a force for good. Consider their role; essentially, they promote awareness of vital social issues, champion social causes, fundraise for important medical research, provide access to services and widen access to social and personal/economic development opportunities for those most likely to experience barriers.
Yet charities can often be dismissed as an insignificant part of social and economic life. Charity CEOs very rarely enjoy, the perks and renumeration of their counterparts in other sectors. Yet they lead a sector that makes a significant contribution to socio-economic life.
There are approximately 170,383 charities operating in England and Wales.
Figures gathered by the Charity Commission, in 2022 show that there were 928,143 trustees and 5.2 million volunteers of registered charities in England and Wales.
Small charities (those with income of less than 1 million) comprise 96% of the voluntary sector.
According to a Community Life Survey, over 2 billion hours are spent volunteering each year in the UK. This is equivalent to 1.25 million full-time employees. This correlates to the total employment across the manufacturing, construction and real estate sectors combined. The charity sector plays an important role in the delivery of services which have traditionally been provided by the public sector. According to the National Council of Voluntary organisations, (NCVO) the areas of activity with the greatest involvement of voluntary organisations are social services provision, religious, culture and recreation.
Charities provide intangible benefits to society through their participation in their local communities, where they:
· activate and mobilise voluntary activity
· employ various experts that are passionate about delivering for the public good
· are passionate advocates for the most marginalised and vulnerable in society.
Charities also make an important economic contribution. This tends to be underestimated but according to a report, Undervalued and Overlooked? The Need for Better Understanding of Civil Society’s Contribution to the UK Economy, the sector contributes a “gross value added” of £200bn a year, equal to about 10 per cent of the UK’s annual economic output.
The report notes that the underestimation of the contribution of the sector has led to policy neglect and an under valuation of the work of the sector.
The undervaluation of the sector can be problematic for countering funding challenges that beset the sector. This can be compounded by negative images of charities. When a high profile charity faces a negative headline, it can have a negative impact on the sector as a whole. This can hamper fundraising efforts.
However, it seems, when charities are able to demonstrate their impact and efficiency they can garner support. A 2022 study conducted on behalf of the Charity Commission found that charities need to be mindful of 4 key expectations:
- That a high proportion of charities’ money is used for charitable activity
- That charities are making the impact they promise to make
- That the way they go about making that impact is consistent with the spirit of ‘charity’
- That all charities uphold the reputation of charity in adhering to these
The charitable sector , also known as the voluntary sector or civil society has huge expertise in reaching the most marginalised groups in society, it attracts creative, and committed professionals that are adept at working with funding constraints and a shortage of resources. In this sector agility and creativity often go hand in hand.
In a changing world charity leaders like business leaders have to be skilled in leadership for their organisations to survive. Additionally, they not only have to be good business leaders to survive they have to manage public expectations.
In an ideal world partnerships between the commercial and charitable sector would be more common place as this can foster enhanced understanding and bring mutual benefits.
