I recently
filled a couple of bags of old clothes and donated to a national charity (won’t
name it but it’s very well known) which has a chain of shops across the city of
Derby and the rest of the country. It’s a good feeling knowing that someone
will benefit from recycled clothes even though my sense fashion is critiqued by
my peers! Later that day I was watching the news on the tv and caught a
discussion part way through about how our taxes are not split evenly across the
UK, with many complaining of higher levels of government expenditure in London
and the South East part of England. This got me thinking…….
National
charities work in a similar way. Across the country they receive donations and
clothes for recycling from individuals like you and I. Many of these shops are run
by volunteers and usually 1 or 2 paid staff. I looked into the financial
turnover of 2 charities which operate to the model above, one working with
older people and one with disabled people with a very specific impairment. Both
had income exceeding £35m a year. Now I’ve been working in the local voluntary
sector for over 20 years and I’m quite confident in saying that very little
money is handed down to the local branches of the said 2 charities to run free
services to that particular group of people. Seems very familiar indeed!
It’s also
quite concerning to note that these local branches are often expected to raise
their own income and then give a portion to head office (often in London!) and
such groups then look towards local authorities for grant funding – and they
get it too! This is the bit where I’ll declare an interest. As CEO of a local
charity, we are often ‘competing’ for funding with groups who have national
affiliation to a head office which chooses to distribute finances elsewhere.
Recently
here in Derby, a large train-making company lost a contract to a German
counterpart. Nationally, there was an uproar that preference should be given to
UK based companies. I don’t know about you but I think the same concept applies
at a local level for locally based not-for-profit groups bidding for local
contracts/grants.
Local
authorities, CCG’s and even grant making trusts need to think very seriously
about their procurement, commissioning or grant-making processes which can often
irreversibly damage the ability of local groups to develop into something
special and unique in meeting local need.
The next
time you donate your clothes or perhaps even cash, ask the charity shop manager
how much of the income they raise is spent on people locally. I think we know
the answer will be quite vague.
Agree with Amo? Don’t Agree With Amo? Get a life Amo?
Amo Raju –
CEO Disability Direct