NFPs Should Not Be Business-Like: UK Expert - Pro Bono Australia Article

Pro Bono Australia, 23 September 2010

UK Not for Profit sector expert, Debra Allcock Tyler has slammed the argument that NFPs should act more like businesses saying it goes against all the reasons that NFPs exist.

Speaking at the Victorian Government’s Think Innovation Summit, Allcock Tyler says she finds it offensive how much is written about how NFPs need to be run better and behave more like the business world.

She says the constant comparison between practices in the business and Not for Profit sectors is ironic, as it was the failure of corporate governance and banks that plunged the world into a recession. 

Click here to read full article.

Source: Pro Bono Australia 

Locally-based community organisations & social inclusion: new report

University of Sydney, 26 March 2010

A new report produced by the University of Sydney, the University of Western Sydney and the Illawarra Forum proposes that the NSW Government's social inclusion objectives have missed the mark in achieving its goals.

The Federal Government recently launched a Social Inclusion Agenda to help reintegrate marginalised members of society by amending its policies and programs in the area of social inclusion.

In NSW, the State Government has been implementing its own initiatives as part of this nationwide drive for increased social inclusion among disadvantaged communities, and a recent State Plan has set out specific and measurable concrete targets to determine the success of these initiatives.

The report, to be launched on Friday 26 March, argues that the NSW Government is neglecting the important role that locally-based community organisations play in creating a sense of belonging and hope for those in need.

It questions the current results-based accountability (RBA) framework used by the NSW Government in measuring the success of its social inclusion initiatives, because the RBA method of measurement does not include speaking to people from disenfranchised communities about their personal experiences.

The report argues that if the Government was instead conducting this kind of quantitative, experience-based research in measuring the results of their Social Inclusion Agenda, they would discover that locally-based community organisations play a vital role in assisting people with struggles over hardship, humiliation, inequality, inclusion, representation and redistribution.

Currently, at a local and regional level there is a lack of attention given to collecting statistical data about the contribution of locally-based community organisations in social inclusion, and so the NSW Government is ignoring a vital component in actioning social inclusion practises.

As the NSW social inclusion practices are largely replicated at a Federal level, the report suggest that the NSW Government's social inclusion failings should act as a test-case for the Federal Government's own Social Inclusion Agenda, and that both the RBA framework of measurement and role of locally-based community organisations in facilitating social inclusion need to be reconsidered.

 Click here to download report.
 
Sources: University of Sydney & Illawarra Forum

'Managing for Recovery' survey report: are charities winning the battle for funds?

In response to the economic climate, 85 per cent of Australian third sector organisations are changing their focus from cost cutting to generating revenue growth over the next twelve months.

The second survey by the Centre for Social Impact (CSI), PricewaterhouseCoopers (PwC) and the Fundraising Institute Australia (FIA), Managing for Recovery, reveals that in the face of the worldwide financial crisis, Australian charities generally expect a positive year ahead.

Fundraising Institute Australia CEO Chris McMillan said the survey clearly showed how swift action by the third sector in the first half of 2009 in putting sustainable business strategies in place ensured the sector successfully weathered the financial storm.

"It's imperative not-for-profits continue to have a clear financial plan and strategy over the next 12 months to ensure their sustainable future in a competitive market," Ms McMillan said.

Mr Millen said larger organisations have fared better than their smaller counterparts in the last 6 months, with two in five (39 per cent) of large respondents experiencing an increase in income compared to a quarter (25 per cent) of small organisations. This trend is expected to continue across all sources of funding.

"There are pluses and minuses to this as large not-for-profits are likely to obtain more government funding than small not-for-profits," Mr Millen said.

"On the other hand, larger organisations are more likely to have investments, and therefore suffered greater falls in investment income as a result of the downturn."

Click here to read full media release and to download survey report.

Contribution of the Not-for-Profit Sector - Productivity Commission research report

Click here for more information and to download report.

Contribution of the Not-for-Profit Sector: draft research report - Productivity Commission

Productivity Commission, 14 October 2009

On 17 March 2009, the Productivity Commission received a terms of reference from the Government asking it to undertake a commissioned study on the contributions of the not for profit sector.

The study's focus is on:

• improving the measurement of the sector's contributions
• removing obstacles to maximising its contributions to society.

Click here for more information and to download draft research report.

Written submissions on the draft report can be made to the Commission by COB Tuesday 24 November 2009.

Source: Productivity Commission

Joint COSS submission on a Compact between the Australian Government and the not-for-profit sector

Excerpt from Key Points:

• The COSS network supports the move towards a Compact between the Australian Government and the not-for-profit sector.
• A Compact provides the opportunity to address some of the major issues facing non-profit, community and social services, including establishing mutual respect and understanding between government and our sector; and reforming funding and contracting and regulation policy to ensure that it aids and supports the delivery of quality social services.
• These issues that are vital for the organisations and service users represented by the COSS network are not necessarily reflective of the priorities across the entire not-for-profit sector.
• High-level principles must be outlined as the basis of the relationship between government and the entire not-for-profit sector.
• Sub-sector agreements can then address the issues that are paramount but unique to smaller groupings within the not-for-profit sector.

Excerpts mentioning small organisations:

Page 6 - “Efficiency: This principle focuses on administrative processes and public accountability. There is a danger that this emphasis will see smaller organisations marginalised from government relations in the interests of larger organisations who are perceived to deliver greater administrative efficiency through their economies of scale. The high-level principles should acknowledge that communities may be best-served by local initiatives, whatever their size or scale, and that this is an important element of efficient and effective community service.”

Page 8 - “The viability of small and local organisations should be guarded through tendering processes that allow them to build their unique capacity to develop and provide locally relevant, responsive and innovative service models. Competitive tendering should also be careful not to stifle willingness between the sector and government to share information on new initiatives and best practice.”

Page 9 - “Of particular relevance for a National Compact is the lesson that special measures are needed to support smaller organisations and organisations based outside metropolitan areas to contribute to the development and implementation of a compact.”

Page 11 - “It is important that engagement spans the breadth of the not-for-profit sector, including in particular small, Indigenous and regional or rural organisations.”

Click here to download submission.

Click here to visit Australian Council of Social Service (ACOSS)'s website.

Source: ACOSS

US link: In Praise of Small and Mid-size Nonprofits

Article from Don Griesmann's Nonprofit Blog - extract:

"It appears to me that there are several reasons why we have small ... and mid-size ... There are community needs that are best served by them. They are "on the ground" meeting priorities, goals and objectives that are not or cannot be met by larger nonprofits such as national groups, universities and others which have a different mission and vision."

Click here to read full article

Source: Don Griesmann's Nonprofit Blog

You might also want to read some related items from the US, arising out of the recent financial 'meltdown':
Should Nonprofits Be More Like Business? - Blue Avocado
Nonprofits proud to be “unbusinesslike” these days - Pierce Arrow

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