Not-for-Profits face a "perfect storm"

Some interesting findings from a recent IPSOS MORI poll on behalf of the Charity Commission:

"Despite high levels of trust (in charities), and 7% saying their trust and confidence in charities has increased over the past two years, one in ten (11%) say that their trust and confidence in charities has decreased.

The most common reason for this decrease is media coverage about how charities spend their donations (response given by 28% of those whose trust has declined).

Indeed, ‘ensuring that a reasonable proportion of donations make it to the end cause’ is the most important factor affecting trust and confidence in charities (42%).

People are more likely to trust charities generally if they, or close friends or family members, have benefited from them. However, people are not always aware of being beneficiaries of a charity - fewer than one in three (30%) say they personally or have close friends or family who have used the services of a charity. However, when prompted with activities that charities might provide, around nine in ten (93%) say they or close friends or family have used these services."

The report is quoted in an article by Zoe Williams in today's (26th May) Guardian which describes how, at the point where not-for-profit organisations seem to be central to the delivery of a plank of government policy, there is a "perfect storm" affecting their sustainability: fast dwindling reserves (which were not huge in the first place), a growing need for their services (as public services contract), local authorities and government paying less for services delivered by not-for-profits, and a limited capacity to withstand the financial challenges of discontinuous change.

There is a range of developing negative impacts on the employees in this sector, including pay freezes and cuts, job cuts, and a growing number of organisational closures as the 'storm' develops. The article also suggests that large commercial companies are beginning to hoover up contracts and employees, undercutting rates and rendering TUPE of limited protection. As one of the 'masters of the universe' who work for outsourcing behemoths said to me many years ago, "TUPE protection only lasts 24 hours if you know what to do". The Guardian article mentions the 25% job-change threshold that presages pay-cuts for transferring employees.

Not a hopeful picture, and one that provides really deep challenges to not-for-profits to find new and effective ways to continue to respond to change and engage their employees, clients, service users and other stakeholders in meaningful work to identify and sustain their positive core, i.e. their core values and beliefs, best ways of working and their most effective relationships, during these challenging times. Using strengths-based development approaches for individuals and teams and seeing the world through appreciative eyes might be a way into this. Not the only way, but a way that experience and science shows is yielding sustainable outcomes in a range of environments.