Voluntary Sector North West and CLES research partnership

Demonstrating the local economic and social value of grant-making

with the vcsNeil McInroy, Chief Executive, CLES

Matthew Jackson, Senior Policy Researcher, CLES

What is CLES?

Independent charity. No commercial sponsor or

government grants

Economic development but

with social fairness and

within limits of environment

UK, but also work in Europe and beyond!

Established 198620 staff: planners, geographers, local

government, environmental

scientists, economists

Hybrid; research, consultancy,

members

Growing-but will stay small

CLES

CLES Research and policy work

Economic resilience:Norfolk Fellowship international research projectCLES resilience Pilot – with 12 Local Authorities

Economic and social tools Economic footprint of public sector in Manchester, Swindon, West LothianSustainable benefits of ‘progressive’ public spend (with APSE)Social return on investment modelling and Social network analysisLEAN Local Economic Assessment network

Economic Policy workNorth West England Integrated Regional Strategy Review

CLES Research and policy work

Futures work:Future city game (with British council) – Moscow, Pilsen, Blackburn, Riga and now in South West

Green Economy:Green skills/green new deal/green behaviours

Financing economies/regenerationEquity finance/changing behaviours to venture capital

Poverty/economic inclusionAnti-Poverty strategies

Well beingEvaluation of BIG lottery well being programme (with New economics foundation)

Today

Broad overview of policy

Objectives of research

Findings from north west research

Concluding thoughts

Discussion

Background to work

Been a move toward service contracts opposed to grants in recent years

This research work anticipated that this trend would continue

The known unknowns is that things are changing

Philosophically – changing relationship between the state, society and individual – a new social contract?

New discourse- ‘Big Society’, ‘civil society’, ‘Office for Civil society’

Cuts and a new social contract – can you do both?

The government thinks we can and the VCS is key to this new social contract

‘Big Society’ requires a cultural shift from the commercial sector in terms giving (philanthrocapitalism), and in investment

Background to work

Nick Hurd, Minister for Civil society - three fold approach:

‘the sector's share of the cake will grow, even if the cake shrinks’

‘there is philanthropy, which has struggled to make progress, and we have said that we need a concerted effort to deliver a step change in cultural attitudes to

giving.’

‘social investment, and it is money from sources that are prepared to consider a blend of traditional financial return and social impact. That source is worth about £1

billion, but it could be worth a great deal more’

Objectives of research

To seek to demonstrate the continued viability and value of grant making in the region

To think again about the move towards contracting as a panacea for development

To unpack voluntary and community sector policy and the definitive role of grant making in that policy

To demonstrate the scale of grant making in the region and the distribution of that grant funding

To explore the local social and economic impact of grant making

To influence national policy thinking

Stage 1 – think-piece

Economic and social value of grants explored around three supposed ‘values ‘

1. Operational values

Grants as start-up capital

Grants as stimulators of innovation

Grants as a fosterer of partnership

Grants as sustainers of organisational ethos

Grants as enablers of economic viability

2. Local economic

Grants as stimulators of local employment and volunteering

Grants as fosterers of entrepreneurship

Grants as value adders to mainstream delivery

Stage 1 – think-piece

Economic and social value of grants explored around three themes:

3. Local social benefits

Grants as facilitators of social interaction

Grants as tacklers of worklessness and deprivation

Grants as area and environmental improvers

Grants as providers of needed and bespoke support services

Stage 2 – survey

Headline descriptions:

Response rate of 37%- accounted for £126million of grant-making in NW

An actual added to projection- £16million of grant-making given by Local Authorities

44% of grant issued in Greater Manchester

Strong reliance in Cheshire and Lancashire upon one grant-maker

21.3% of grant issued for volunteering activities

29.9% of grant issued for children (5-16) focused activities

Stage 2 – survey

10.3%

10.3%

6.9%

13.8%

6.9%13.8%

37.9%

less than £50,000

between £50,000 and £100,000

between £100,000 and £250,000

between £250,000 and £500,000

between £500,000 and £1million

between £1million and £2million

more than £2million

Stage 2 – survey

Stage 2 – survey

Stage 2 – survey

Stage 2 – survey

11.6

11.8

13.8

15.8

21.3

8.9

16.8 Cultural activities

Employment activities

Environmental activities

Health and education activities

Participatory and volunteering activities

Running of facilities

Sports activities

29.9

27.1

12.0

11.7

7.6

11.6

Children aged 5-16

Young people aged 16-24

Black and ethnic minorities

People with disabilities

Refugees/asylum seekers

Older People

Stage 2 – survey

Key results – views on the shift from grants to contracts

It all depends upon time and capacity

Grants should always be the starting point

Contracting discourages innovation

It assumes the sector is homogenous with similar bidding capacity

It is ‘the future’

Key results – the impact upon the region on service contracts

It has favoured a small minority of VCS –the big ones

Shift to contracts has not seen the mainstreaming of worthwhile community projects

It has had an adverse effect in two-tier areas and ‘localness’

Conclusions and Recommendations

Conclusions from research

Grants are the trigger point for start-up

There is a reliance on one grant maker –very vulnerable

Grants spark innovation , creativity and neighbourhood level ideas

Contracts are not always wanted nor is there capacity, skills or aptitude in the region to deliver

Grants enable a string of operational, economic and social values

Grants allow for cooperation and partnership not competition

Grants enable VCS to retain ethos/activism, geography and values

Some recommendations for VSNW - online database of grant-issuers and grants issued in the region

Conclusions and Recommendations

Wider conclusions and thoughts

An effervescent ‘civil society’ needs grants

Grants spark innovation , creativity and neighbourhood level ideas

Will the cuts agenda result in the commercial outsourcing agenda ‘squeeze’ out’ the sector

Just because there is an absence of provision and a gap through cuts there is no guarantee that the VCS can fill it..just gov’t pressure!

The role of VCS is not just to deliver on the governments agenda

The VCS needs to retain an oppositional/activist role if required

Demand may be up, less money but to shrink is not a failure

‘Big Society’ is predicated upon a cultural shift from the commercial sector in giving (philanthrocapitalism)

Next steps: to decide upon how this is all publicised