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Daniel Roche supports environmental organisation Wren's Biodiversity Action Fund
A third of Scottish councils claw back surpluses from charity contracts
By David Ainsworth, Third Sector Online, 11 March 2010
Report by SCVO and Voluntary Action Scotland also finds more than half of local authorities do not offer three-year funding regularly
A third of local authorities in Scotland still claw back surpluses from voluntary sector contracts, and more than half do not regularly offer three-year funding, according to a survey of local third sector bodies.
A report by the Scottish Council for Voluntary Organisations and Voluntary Action Scotland found that more than half of local authorities do not offer charities increases in their funding in line with inflation.
The report was produced in response to a request by John Swinney, finance minister for the Scottish Government.
It is based on 45 responses from local and national umbrella bodies in Scotland, with representatives in all of the 32 local authority areas.
It found that third sector organisations are represented in partnerships set up to provide public services in 28 of the 32 local authority areas.
"The survey findings show a mixed picture," the report says. "There are some very encouraging signs, such as the near-universal representation of the third sector at community planning top tables. Other findings reflect the prevailing economic climate, such as the widespread pessimism about the future of grant funding."
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Dave Punshon, 12 March 2010, 14:24
If they clawed back profits on contracts let to the private sector the economy would be in dire straits
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Ian Morland, 15 March 2010, 12:17
It would be useful to know exactly what is meant by the statement. If there is an underspend created by a lower delivery of service then it may be proper to reclaim some of the underspend. But if the councils are simply reclaiming an operating surplus when the price has already been agreed, then surely it would be a breach of contract?
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Laurence Hopkins, 16 March 2010, 12:37
This is potentially illegal und European legislation. The state cannot treat third sector organisations differently for contracts - as Dave P notes - this practice never happens in private sector contracts - indeed, it is the incentive of making delivery savings that is supposed to make the private sector better value for money.
The third sector should not be treated as third rate. While it might be thought of as 'not for profit' it is 'not for loss' either - rather than savings going to dividends, any savings are going to be ploughed back into charitable services, assets and goods. Surely, this can only be beneficial?
If the sector is to deliver more and more for the state, this practice cannot continue.
http://www.theworkfoundation.com/pressmedia/blogs/blog.aspx?oItemId=253
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