Collaborative Working: Issues, options and opportunities

1. In the light of the economic downturn, I wanted to give this workshop some context. The Charity Commission�s latest Economic Survey of Charities found that 52% of charities surveyed have been affected by the financial downturn; of these, 58% have experienced a decrease in income. Tips that umbrella bodies like NCVO are suggesting organisations consider to cope with the current economic climate include� (NEXT SLIDE)In the light of the economic downturn, I wanted to give this workshop some context. The Charity Commission�s latest Economic Survey of Charities found that 52% of charities surveyed have been affected by the financial downturn; of these, 58% have experienced a decrease in income. Tips that umbrella bodies like NCVO are suggesting organisations consider to cope with the current economic climate include� (NEXT SLIDE)

2. Have a diverse range of income streams by�exploring all the available income options, you can set up a more secure base of funding for your work. Strengthen key relationships�ensure that you are responding to the needs of the people that use your services and products.�Be clear with your funders what they want from you and what you can provide.�Explore strategic partnerships Focus on your mission�this is a time to concentrate on your core business and make sure your organisation is�doing what it is best at. Tighten up financial systems�make sure that you have an�accurate picture of income, cash flow and costs so you can quickly address any issues. Plan for the future�rapid economic change can provide opportunities as well as threats.�Ensure your organisation�thinks about what is coming and has planned�accordingly.Have a diverse range of income streams by�exploring all the available income options, you can set up a more secure base of funding for your work. Strengthen key relationships�ensure that you are responding to the needs of the people that use your services and products.�Be clear with your funders what they want from you and what you can provide.�Explore strategic partnerships Focus on your mission�this is a time to concentrate on your core business and make sure your organisation is�doing what it is best at. Tighten up financial systems�make sure that you have an�accurate picture of income, cash flow and costs so you can quickly address any issues. Plan for the future�rapid economic change can provide opportunities as well as threats.�Ensure your organisation�thinks about what is coming and has planned�accordingly.

3. I�m going to focus on the first and second point, and ask whether there are ways of diversifying income and becoming sustainable through working with others. Introduce me and NCVO I�ll be speaking for about 30mins Then Neil Wilson from The Rose Road Association will be talking Then questions and discussion So, let�s explore the context for collaborative working�I�m going to focus on the first and second point, and ask whether there are ways of diversifying income and becoming sustainable through working with others. Introduce me and NCVO I�ll be speaking for about 30mins Then Neil Wilson from The Rose Road Association will be talking Then questions and discussion So, let�s explore the context for collaborative working�

4. There have been a number of drivers / pressures on VCOs to consider collaborating: Interest in VCS delivering public services in consortia, and recognition that VCS offers a gateway to hard-to-reach communities, �Heineken� reaching the parts others can�t. CC survey in 1999 found that 58% of the public thought that there were too many charities. Contentious! But CW might be a way of addressing this perception. Trust vital in maintaining support CC said �All charities should consider seriously and imaginatively whether there are ways in which they could do more and better for their users by working together.� Some funders encourage CW, others make it a condition of grant. But, funder-led collaboration can be problematic, it can feel like a forced partnership and there may not be time to develop the relationship� Recession � there will of course be a lag. Will we collaborate more or compete more? And a drive to improve efficiency and effectiveness from within the sector itself. To provide better services for beneficiaries. There have been a number of drivers / pressures on VCOs to consider collaborating: Interest in VCS delivering public services in consortia, and recognition that VCS offers a gateway to hard-to-reach communities, �Heineken� reaching the parts others can�t. CC survey in 1999 found that 58% of the public thought that there were too many charities. Contentious! But CW might be a way of addressing this perception. Trust vital in maintaining support CC said �All charities should consider seriously and imaginatively whether there are ways in which they could do more and better for their users by working together.� Some funders encourage CW, others make it a condition of grant. But, funder-led collaboration can be problematic, it can feel like a forced partnership and there may not be time to develop the relationship� Recession � there will of course be a lag. Will we collaborate more or compete more? And a drive to improve efficiency and effectiveness from within the sector itself. To provide better services for beneficiaries.

5. I�m sure most � if not all � of you in this room will have encountered the encouragement, or requirement, to work in partnership Move to fewer, larger contracts has resulted in many VCOs - consortia Partnership in public services (Dec 06) � support for consortium building Grants. I used to work for the Community Fund / Big Lottery Fund, and rarely saw any applications from consortia. Now it�s often a requirement of applying. In addition to BIG, other funders that have run collaborative programmes include Vodafone Foundation, and the Lloyds TSB Foundation And some funders are working together, e.g. Baring Foundation and John Ellerman Foundation (International Grants), BIG and Comic Relief fund a collaboration - Time to Change campaign: Mind, Rethink and Mental Health Media. Expectation � �Are we moving into an era where collaborating organisations are seen as deserving and those that don�t are seen as undeserving?� So, the environment seems to be changing� But does collaborating offer opportunities?I�m sure most � if not all � of you in this room will have encountered the encouragement, or requirement, to work in partnership Move to fewer, larger contracts has resulted in many VCOs - consortia Partnership in public services (Dec 06) � support for consortium building Grants. I used to work for the Community Fund / Big Lottery Fund, and rarely saw any applications from consortia. Now it�s often a requirement of applying. In addition to BIG, other funders that have run collaborative programmes include Vodafone Foundation, and the Lloyds TSB Foundation And some funders are working together, e.g. Baring Foundation and John Ellerman Foundation (International Grants), BIG and Comic Relief fund a collaboration - Time to Change campaign: Mind, Rethink and Mental Health Media. Expectation � �Are we moving into an era where collaborating organisations are seen as deserving and those that don�t are seen as undeserving?� So, the environment seems to be changing� But does collaborating offer opportunities?

6. Is it counter-intuitive for charity fundraisers to consider working with others to generate income? There is fierce competition for ever-decreasing funds And good donor relationships is one of the most important commodities for fundraisers. One of the problems with merging is the fear of losing donors. But, Could collaborating open up routes to new sources of income? Could it give us competitive advantage? (e.g. local organisations working together to compete with private sector providers / large and small organisations working together�) Trustees have a duty to ask themselves if they are doing the best for their beneficiaries, and whether there are ways of doing so with other organisations. Is it counter-intuitive for charity fundraisers to consider working with others to generate income? There is fierce competition for ever-decreasing funds And good donor relationships is one of the most important commodities for fundraisers. One of the problems with merging is the fear of losing donors. But, Could collaborating open up routes to new sources of income? Could it give us competitive advantage? (e.g. local organisations working together to compete with private sector providers / large and small organisations working together�) Trustees have a duty to ask themselves if they are doing the best for their beneficiaries, and whether there are ways of doing so with other organisations.

7. Many and varied! Some common benefits� Innovation � Formula 1Many and varied! Some common benefits� Innovation � Formula 1

8. The Added Value of collaboration: Total being greater than the sum of the parts, or 1+1=3 If the reason for the CW approach is primarily to access funding (e.g. if a partnership bid is a necessity) then it could be that Collaborative Advantage isn�t realised; that no added value arises from the partnership. It�s important to consider how this added value might be achieved when working together. But, is there an unrealistic expectation of added value? Do funders / commissioners have unstated expectations? CW isn�t the same for everyone, and circumstances differ widely, and there are potential risks and challenges� The Added Value of collaboration: Total being greater than the sum of the parts, or 1+1=3 If the reason for the CW approach is primarily to access funding (e.g. if a partnership bid is a necessity) then it could be that Collaborative Advantage isn�t realised; that no added value arises from the partnership. It�s important to consider how this added value might be achieved when working together. But, is there an unrealistic expectation of added value? Do funders / commissioners have unstated expectations? CW isn�t the same for everyone, and circumstances differ widely, and there are potential risks and challenges�

9. Personalities � this is the most common problem we hear about in the CWU. A clash of individuals, suspicion, may be a significant obstacle. Competition�and territorialism. �Temporary suspension�� CW does require investment, particularly at the start: time, money, before the benefits are realised. Are these equitable? Distribution of profits requires clarity Threats to reputation � and cultural differences - most common obstacle to merger, yet neglected. Working practices, values and ethos. Fear of losing supporters � a common problem with merging. What if a donor is supporting the two organisations that come together to form one legal entity? Different expectations � needs clarity Diversion from core activities Unequal or unmanaged distribution of risk Personalities � this is the most common problem we hear about in the CWU. A clash of individuals, suspicion, may be a significant obstacle. Competition�and territorialism. �Temporary suspension�� CW does require investment, particularly at the start: time, money, before the benefits are realised. Are these equitable? Distribution of profits requires clarity Threats to reputation � and cultural differences - most common obstacle to merger, yet neglected. Working practices, values and ethos. Fear of losing supporters � a common problem with merging. What if a donor is supporting the two organisations that come together to form one legal entity? Different expectations � needs clarity Diversion from core activities Unequal or unmanaged distribution of risk

10. Joint fundraising � e.g. events Payroll giving through consortia � e.g. Child Concern Consortium Legacies � e.g. Remember a Charity. Also addresses public perception Joint trading � e.g. online trading Appeals � e.g. DEC. Very familiar to us all, and recently in the news due to the BBC�s decision not to screen the Gaza disaster appeal. But a long-standing collaboration. NB � Appeals are restricted income (as opposed to the above)Joint fundraising � e.g. events Payroll giving through consortia � e.g. Child Concern Consortium Legacies � e.g. Remember a Charity. Also addresses public perception Joint trading � e.g. online trading Appeals � e.g. DEC. Very familiar to us all, and recently in the news due to the BBC�s decision not to screen the Gaza disaster appeal. But a long-standing collaboration. NB � Appeals are restricted income (as opposed to the above)

11. Organisations should be clear about what they want from their partners, and about what their partners want from them. For example, is the collaboration to be a partnership of equals, or will one organisation act as the lead and accountable body? Will the target constituents of the collaboration be different from those of partner organisations? Each partner should be careful about its interests, and consider any potential impact on existing stakeholders. What will be done jointly? And what will remain the separate responsibility of the partners? What form should the project take? For example, is it appropriate to establish a new legal entity for the work? How will resources be allocated? For example, will income be divided equally between partners, or distributed to an agreed formula? Is the partner reputable, stable, solvent and compatible?� Organisations should be clear about what they want from their partners, and about what their partners want from them. For example, is the collaboration to be a partnership of equals, or will one organisation act as the lead and accountable body? Will the target constituents of the collaboration be different from those of partner organisations? Each partner should be careful about its interests, and consider any potential impact on existing stakeholders. What will be done jointly? And what will remain the separate responsibility of the partners? What form should the project take? For example, is it appropriate to establish a new legal entity for the work? How will resources be allocated? For example, will income be divided equally between partners, or distributed to an agreed formula? Is the partner reputable, stable, solvent and compatible?�

12. Trust and commitment Early agreement Recognition of different strengths Open, honest communication Steering group Compatible cultures Also, written agreements. Charity Commission research re. 1 in 10� Trust and commitment Early agreement Recognition of different strengths Open, honest communication Steering group Compatible cultures Also, written agreements. Charity Commission research re. 1 in 10�

13. New legal body PROS: jointly owned venture; protecting the organisations - ring-fencing risk CONS: track record (financial and work); structure?; TUPE Board composition � representation and independents 2. Lead organisation Natural, appropriate lead with capacity. But responsibility! Accountable to funder. Perception of imbalance? �Manage� the partners? Steering Group � again, appropriate representation. Joint Working Agreement 3. External lead E.g. infrastructure body Capacity building support, and try to influence commissioner Deciding factors Size and duration of contract; preference of commissioner Also, VATNew legal body PROS: jointly owned venture; protecting the organisations - ring-fencing risk CONS: track record (financial and work); structure?; TUPE Board composition � representation and independents 2. Lead organisation Natural, appropriate lead with capacity. But responsibility! Accountable to funder. Perception of imbalance? �Manage� the partners? Steering Group � again, appropriate representation. Joint Working Agreement 3. External lead E.g. infrastructure body Capacity building support, and try to influence commissioner Deciding factors Size and duration of contract; preference of commissioner Also, VAT

15. Next steps www.ncvo-vol.org.uk/collaborate collaborate@ncvo-vol.org.uk 020 7520 2440 Contact us for support and advice, and questions that haven�t been answered today. Reiterate, not for everyone, but significant benefits can be realised through collaborative working. Hand over to Neil�Contact us for support and advice, and questions that haven�t been answered today. Reiterate, not for everyone, but significant benefits can be realised through collaborative working. Hand over to Neil�