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Is an equitable dialogue possible between smaller charities and commissioners?

Posted By Administration, 02 December 2021

As part of their Clore Social Leadership ‘Emerging Leaders’ programme, Gwendolyn Sterk, Sam Edom, Katie Potter, Becky Evans, Stephanie Woodrow and Claire Kofman reflect on the relationship between smaller charities and commissioners - and what can be done to improve conversations between the two.

For many leaders in the third sector, particularly those based within smaller communities providing frontline support and services, competitive commissioning processes can be a complex, uncertain and unequal space.

Smaller charities[1] are disproportionately impacted by inequalities inbuilt in commissioning regimes, further exacerbating and entrenching structural inequalities that impact the communities in which small charities are situated, for example institutional racism.[2] At the same time, there has been much praise directed towards the value of small charities[3] in their ability to meet the needs of the communities in which they are formed and deliver support.

Evidence has also shown that Covid-19 has further exacerbated inequalities across communities, which has had a disproportionate impact on smaller charities. However, Covid-19 has also offered opportunities for small charities to be flexible and responsive in meeting the needs of the communities they serve.

With the reality being both an inequitable struggle for small charities within commissioning structures but also an assertion and recognition of the vital work small charities do, that cannot be done by others, particularly at a time of crisis, it seems vital that a space for dialogue is created to enable the positive work to prevail.

With this in mind, we set out to speak to both small charity leaders and commissioners to answer the question: “What are the barriers to facilitating open conversations between small charities and statutory commissioners, and how might they be overcome?”

To begin with, after considering the existing research in this area, we had conversations with people within both the social sector and with commissioners we knew to explore the issue further. We found there were four impacts on the ability to have open conversations to consider - commissioning structures, Covid-19 and the cliff edge caused by short-term funding cycles, inequalities, and the lack of capacity within smaller charities.

Following on from these findings, we put together two different surveys - one for leaders in smaller charities, and one for commissioners. Although we had a reasonable response to the survey for leaders of smaller charities, we struggled to reach commissioners, only receiving a few responses. However, the responses we did receive gave a good indication of the barriers to be overcome.


The Barriers

1. Commissioners can be hard to engage in discussion

Interestingly, and as mentioned previously, throughout our investigation of this question we have struggled to engage commissioners in even discussing the question, with a few notable exceptions (which we are very grateful to).

This may be due to commissioners wanting to maintain an aspect of independence from charities as we come from charities ourselves, or that the engagement routes utilised by charities are not the same spaces where commissioners can engage. But it seems our experience is symptomatic of the difficulty of creating a dialogue between charities and commissioners. We struggled to identify informal spaces where commissioners engage in discussion, whereas charities were accessible to us via social media.

2. Inflexible systems imposed from above

The perceived inflexibility of procurement regulation and the belief that they implement an unbiased approach left commissioners acting in structures that did not allow for the values of small charities to be seen, or for engagement to happen within the commissioning process that was not strictly controlled.

Stringent and inflexible approaches to commissioning regimes left commissioners distant from the impact small charities have on communities, prioritising cost over value for money. It was recognised that commissioners were themselves restricted by higher level decision making and bureaucracy:

“Most of our commissioners see the need for change but change is blocked further up. Overall systems are inflexible and one size fits all. As a small charity, it feels like we're working in a system designed to get the cheapest deal on bulk buy toilet rolls.”

“In my experience commissioners usually genuinely want to listen and learn, however they often don't have much opportunity to change processes based on what they learn.”

3. Lack of understanding on the part of commissioners as to what small charities do, and often a lack of sympathy in their struggles

In our survey responses, commissioners spoke of the work smaller charities do as being innovative, agile, responsive to individual need, and embedded in the communities they serve.

However, 29% of the small charity leaders that responded to our survey said that they didn’t feel confident that commissioners understand the situation on the ground.

The commissioners recognised that small charities could struggle within the commissioning process, however their responses focused on what small charities could do to ‘fit in’ rather than thinking about how the system may reduce bureaucracy so that small charities may equally participate:

“Bigger organisations are often more laissez faire with the frustrating bureaucracy, for example, late payments or disappearing professionals - maybe because of experience or a bigger financial cushion.”

“[Small charities should] make the commissioner's job easy.”

That being said, across both commissioners and small charities there was a desire to move towards better dialogue and talk about engagement that is meaningful.


So how might these barriers be overcome?

1. Develop a more flexible relationship

The response to Covid-19 demonstrated an opportunity for things to be different. Smaller charity leaders noted that there was greater recognition that they could respond in a needs-led manner, allowing for flexibility over KPIs and a greater recognition that smaller charities could provide grassroots information and evidence to inform swift funding decisions. There was a recognition that smaller charities needed to lead on the adaptation of their provision at a time of crisis within the resources provided:

“When commissioners have taken on board changes required as a result of Covid-19, they were very open to the changes that were needed to deliver the services, understood the changes needed and that we could deliver for the funds we had.”

It was clear from the survey that smaller charities believe they are more aware of the need and can respond better than larger charities or statutory services to community needs. This became a great advantage during Covid-19 and should be considered as part of the process in building back better.

2. Come and see it

Most of the survey respondents had an open invitation to commissioners to come and see their work and meet the people whose lives were being changed.

One survey respondent highlighted a scheme called Transition Pilots. The scheme saw commissioners working alongside the smaller charity to try a new approach:

“The idea is that the commissioner meets with us every six weeks and begins to implement the learning into their commissioning process - a commitment to commission for people and not for problems.”

The charity noted that this was happening in three spaces at the moment, however was not currently a system-wide approach.

Advice to commissioners is to visit the smaller organisations at their base of operations and allow time to understand them in an informal setting. Ideally, commissioners would then have the autonomy to implement learning from these meetings into their commissioning practices. If this isn’t possible, then at least a dialogue would be opened.

3. Take commissioners on the journey

Maintaining positive relationships with commissioners once they were successful in tenders was key for smaller charities: invite commissioners to review delivery, meet the people involved, and include service user feedback in any reporting. They noted that ensuring commissioners understand the challenges along the way can be key to maintaining a dialogue.

This can be hard when commissioners change roles or who to report to changes frequently. Relationship building takes time, and small charities don’t have the resources to engage regularly. So it is vital that commissioners also recognise smaller charities are exactly that and do not necessarily have lots of resources to attend multiple meetings. They should work in partnership with the organisation on equal terms, and that partnership shouldn’t depend on individuals from either side but be developed across teams so that a key partner leaving or changing role does not derail the relationship.

4. Focus on delivering long-term change

Thinking longer term and recognising the struggles of smaller charities and the need for flexibility was key for smaller charities to feel able to have equitable discussions with commissioners:

“We had a conversation about the long-term nature of change and they adapted by recognising how hard it is/being more flexible with outcomes.”

This will require being open to challenge and new ideas. Commissioners will need to understand that smaller organisations can struggle to be stable on short rounds of funding, and that multi-year contracts will result in more consistent, higher quality delivery.

5. Acknowledge that radical change is possible

The response to Covid-19 has shown that there can be different ways of commissioning work which can include simplified processes and allowances for the ways smaller charities work. Moving forward, it will be important for commissioners to consider wider questions of inequality and who gets to be involved when it comes to commissioning processes, particularly around issues like race where research shows time and time again that Black and Minoritised community organisations are unable to access the processes that larger organisations can:

“We need to take this argument back to the structure. The structure of funds, how they are set up. Who they are accountable to, where their accountabilities lie, what representation do they have of the community, do they look like the community and do they understand the lived experiences of the communities? A lot of those decision making boards can’t tick those boxes.”[4]




[1] Community based, local and/or target group specific, defined financially as under £2m turnover a year for the purposes of our survey

[2] https://www.ubele.org/booska-paper

[3] https://www.lloydsbankfoundation.org.uk/media/c2aphccs/the-value-of-small.pdf

[4] https://www.ubele.org/booska-paper

Tags:  challenges  collaboration  fellow  fellowship  funding  programme 

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Why is the Responsible Finance Sector in need of leadership development?

Posted By Clore Social Leadership, 23 July 2019
Updated: 23 October 2020


The world is awash with leadership books, courses and advice. In 2015 around 1,200 books were published with the word ‘leadership’ in the title. Type ‘leadership’ into a search on Amazon and you will have over 50,000 titles to peruse. Hundreds of MBA courses are available every year. You can find out how ,  and ‘Unicorn Leadership: how integrated, next-level leaders are changing the world’. And politicians, top military brass, psychologists and business leaders all have platforms to share their secrets of leadership success.

So with all of these options on the market, why is the responsible finance sector in need of a leadership programme?

Over the last decade, we have seen an acceleration within mainstream and retail finance of roles becoming highly specialised. But responsible finance remains a sector that puts people first, is agile and innovative.

Yet there is limited availability of training and development programmes for those working in responsible and social finance, a growing sector that is critical to supporting local economic growth and financial resilience across the UK.

In 2017, the responsible finance industry lent £67 million to over 5,000 small businesses, creating over 4,000 jobs. Businesses funded included local nurseries, manufacturers, cafes and food producers. £22 million was lent in over 55,000 loans and customers were encouraged to deposit over £3 million into savings accounts and helped to improve their credit scores and financial capability. £142 million was lent to 363 social enterprises, including a charity training medical detection dogs and a community build scheme with integrated training and employment skills on construction sites.

Credit unions are financial cooperatives that provide savings accounts and loans to consumers. At the end of 2017, there were 450 credit unions in the UK with nearly 1.8 million members. In 2017 credit unions lent over £161 million to their members, and had total deposits of £2.6 billion at the end of the year.

Social investors invest with a social purpose alongside a financial return. In 2016 £630 million was invested to over 1,100 beneficiaries. The majority of this was lending by social investment intermediaries.

Despite this significant impact, the social and responsible finance sector is ambitious to do far more and knows that the need from customers is there. Building the next generation of leaders and developing the skills they need will ensure the long-term sustainability of the sector. It is important that responsible finance leaders of the future have the confidence and abilities to tackle some of the sector’s prominent opportunities and challenges.

With small teams and limited resources, senior management needs to have an overview of and provide leadership on issues ranging from risk management to lending policies, IT platforms to marketing, securing investment to demonstrating impact.

That’s why Responsible Finance has launched its first leadership programme for the Responsible Finance Sector. Funded by the Connect Fund and delivered in partnership with Clore Social Leadership, the programme will also be available to the wider social finance sector, such as credit unions and Social Investment Finance Intermediaries (SIFIs).

The target audience is aspiring leaders in the sector, middle managers and above. The purpose is to create the next generation of responsible finance leaders, addressing succession planning, staff development and retention challenges that the sector faces.

The Responsible Finance Leadership Programme will support aspiring leaders to develop their skills, knowledge and behaviours to become stronger ambassadors for their organisation and the sector as a whole. It will help them to become better strategic thinkers, confident to operate openly and transparently while empowering others and to effectively collaborate with a wide range of stakeholders.

You can find out more here.

Tags:  collaboration  finance  funding  future  programme  team 

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The Funders' Collaboration on Leadership: bold moves in challenging times

Posted By Clore Social Leadership, 24 August 2016
Updated: 04 December 2020
Andrew Barnett has been the director of the UK Branch of the Calouste Gulbenkian Foundation since 2007 and is the Convenor of the Funders’ Collaboration on the Leadership.

Social sector leadership is an issue that’s close to my heart. I’ve worked with some exceptional individuals during my career: passionate and empathetic, thoughtful and strategic, collaborative, outward looking, with vision and foresight. They’ve not just been effective; they’ve been an inspiration to me. These qualities are found across the 163,000 organisations that make up the sector but not consistently so. Some heading up organisations lack the sort of insightful, collaborative and ‘generous’ leadership that feels so necessary when organisations should be collaborating, rather than competing, in the interests of their beneficiaries. Understandably, the response of some leaders is to retreat in the face of the huge external challenges whilst a tiny few – a small fraction of the total - act in a way that brings discredit on the sector as a whole and the values it stands for.

We have often neglected to invest in developing the next generation of leaders with such investment perhaps regarded as an indulgence. The fragmented nature of the sector – with many smaller charities and a limited number of larger ones – creates conditions in which we just hope and pray for good people rather than identifying and developing them. And this happens at a time when the social sector plays an increasingly important part in the fabric of society and yet faces some of its biggest strategic challenges. We have huge potential to be forces for good if only we can address this deficit.

This was the context for a ‘retreat’ held six months ago in Windsor. The gathering was convened by Sally Bacon from the Clore Duffield Foundation (a pioneer in this field), Sara Llewellin from the Barrow Cadbury Trust and myself from the Calouste Gulbenkian Foundation’s UK Branch (another early supporter of Clore Social Leadership) with the support of Shaks Ghosh from Clore Social itself. We were joined by colleagues from thirteen other funders, from the sector’s major umbrella bodies and from government. It was an opportunity for challenge and critical assessment. The big question was how we, as sector “stewards”, could ensure that it was well led and governed now and in the future.

A sense of urgency was hung over our discussions and a number of observations emerged: there is no ‘market place’ where organisations can find affordable and accessible leadership education (and no sign-posting to what exists); for a variety of reasons, demand from the sector itself appears weak (whether driven by short-termism or lack of resource). We felt strongly the need to support charities in their work. This is not just to reclaim their place in the affections of the British public, challenged of late by the behaviours of the tiny few, but to fulfil their potential acting alongside the state and a private sector who share the mantle of meeting the demands and needs of the British public now and in the future. We committed to collaborate on a bold initiative to transform social sector leadership - what some call “pulling all the levers at once” and others as “a collective shot in the arm” - to be delivered within a fixed timeframe but with an impact that lasts beyond the activities themselves (or funding).

The Funders’ Collaboration on Leadership, as it has come to be known, has brought together 50 individuals from funders, umbrella bodies, social sector organisations, and government with the aim of developing innovative and scalable solutions to the problems identified at the retreat. The focus is on four main themes, each of which now has a working party:

  1. Restoring trust in the voluntary sector.
  2. Sharing foresight information and preparing the sector for the future.
  3. Improving the standard of governance by informing and skilling trustees.
  4. Developing a new leadership style for our sector.

Each working group has been challenged to develop a defined, time-limited experiment that tackles each priority head on. If we can demonstrate evidence of the potential to be transformative, the plan is to prototype, pilot and take each to scale. We have a strong interest in ensuring this initiative adds up to more than the sum of its parts and we will be seeking to link the work of the different groups in ways that create a multiplier effect. We have a strong commitment to avoid duplicating other sector initiatives on governance, leadership and trust, complementing and supplementing them, where we can. We will disseminate the findings from the work and keep the collaborative flame burning with events and communications.

This doesn't happen by accident. It happens because of the commitment of people like Shaks, those who joined us in Windsor and others besides. And, it doesn’t come free. We are pleased that the Office for Civil Society has set aside a budget of £1.7 million for the most innovative projects and the Big Lottery Fund has agreed to match this. This leaves £1.7m to be raised from other sources including trusts and foundations who will be encouraged to trial the approaches with the organisations in their grantee portfolios.

We intend that a real difference is felt by the organisations who make up our sector, those who work with us, who benefit and even those who have been of our detractors of late. We estimate that there are 1.3 million leaders in our sector. To empower them further, we must extend a rich but coordinated offer of support to remarkable people in a context in which their work is not only valued but sought out.

Join in on the conversation with #FundersCollab and keep an eye on both the Calouste Gulbenkian (UK Branch) and Clore Social Leadership pages to stay abreast of the work being done by the Funders’ Collaboration on Leadership.

Tags:  casestudy  challenges  change  culture  event  funding  socialsector 

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