Defining and exploring the voluntary sector
NNCO_VOLTaking part in the voluntary sector
Defining and exploring the voluntary sector
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Contents
- 1. Defining and exploring the voluntary sector
- Learning outcomes
- 1.1Structure and regulation in the voluntary sector
- 1.2 Size, scope and role of the voluntary sector
- 1.3 Values-based organisations
- 1.4 Key points from Section 1
- 1.5 Section 1 quiz
- Glossary
- References
- Acknowledgements
1. Defining and exploring the voluntary sector
Introduction
In this section you will be introduced to the voluntary sector and will consider what is unique to voluntary organisations and to charities specifically: what defines them. You will explore the context in which voluntary organisations work, some history of the sector and what brings all different kinds of voluntary organisations together.
Section 1 is divided into three topics:
- Structure and regulation in the voluntary sector looks at where voluntary organisations have come from, how a typical voluntary organisation might be organised and what rules they have to follow.
- Size, scope and role of the voluntary sector steps back to give an overview of the sector as a whole: what kinds of voluntary organisations are out there, what they do and who works in them.
- Values-based organisations explores the guiding principles that underpin the voluntary sector and encourages you to consider them against your own values.
If you are already active in a voluntary organisation then it will help you to keep that organisation in mind throughout this section and think about how the organisation compares to others in the voluntary sector. If you do not yet work in the sector then this will help you to think about the kind of organisation you might be interested in being involved with.
Learning outcomes
By completing this section and the associated quiz, you will:
- understand where some voluntary organisations have come from, and who they might register with and report to, if required
- know more about the type and number of voluntary organisations in the UK and their staff and volunteers
- have an awareness of what drives voluntary organisations and of the environment that they are working in.
1.1Structure and regulation in the voluntary sector
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Figure 1 Registered charities are required to abide by rules and regulations.
View description - Figure 1 Registered charities are required to abide by rules and regulations.
End of Figure
Different institutions in society can act for the good of the public. Traditionally, there are three sectors: the public sector, the private sector and the voluntary sector, and each of these three sectors has a role to play in social development.
The public sector includes organisations that provide basic public services such as armed forces, policing, roads, education and health. These services are provided through income from taxation and, in the UK, national insurance. The public sector spends by far the largest amount on social welfare activity.
The private sector includes organisations and individuals that provide goods and services and their primary aim is to make a profit; for example, shops, manufacturers, financial services, etc. Profits are distributed to owners and shareholders as well as reinvested. Many private sector organisations endeavour to act in a socially responsible way through providing good conditions of employment, being a good citizen in the local community and supporting a clean environment by not wasting resources.
The voluntary sector is different from the other two sectors because it is not-for-profit and is not government controlled like the public sector. Traditionally, it has occupied a third space and sits between the public and private sectors. The third space is one where needs have not been met because the private sector has not seen it as profitable to do so and the public sector has either neglected these needs or not been able to afford to address them.
However, boundaries between the sectors have become more blurred. Think of private sector organisations now running services that used to be provided by local authorities or hospitals (for example, cleaning or waste collection). As the public sector has developed and evolved, the interface with the voluntary sector and its relationship with voluntary organisations as providers of services has changed and continues to change dramatically.
Public sector libraries are often run by volunteers instead of paid staff. There are also more partnerships between the sectors – for example, a new NHS hospital built using private sector finance – or voluntary organisations working with local authorities to provide social housing or care for children with disabilities. Another growth area is social enterprises which, although they are businesses generating profits, also have social or environmental goals.
Most organisations in all three sectors are regulated or inspected in some way so that customers or clients are protected. Organisations such as the Financial Services Authority, Ofcom, and the National Audit Office are often in the news reporting on some aspect of public or private organisations’ work. The voluntary sector is also partially regulated: this is the case of organisations that are registered charities, however not all voluntary organisations are registered. Those that are registered are subject to the Charities Act 2011 (England and Wales), the Charities and Trustee Investment (Scotland) Act 2005, the Charities Act (Northern Ireland) 2008 and the Charities Act (Northern Ireland) 2013. Registration and regulation of charities is done by the Charity Commission in England and Wales, the Charity Commission in Northern Ireland, and in Scotland by the Office of the Scottish Charity Regulator (OSCR). Fundraising by charities is also subject to regulation and this is done by the Fundraising Standards Board.
Public benefit
The various charities acts define a charity as a body or trust which:
- is for a charitable purpose, and
- is for the public benefit.
Public benefit relates to:
- the charity’s purpose and what it was set up to achieve
- how the charity's prupose is beneficial
- how the trustees will carry out the charity's purpose for the public benefit.
Public benefit is the legal commitment of charities and what the Charity Commissions or OSCR regulate. It also gives organisations the focus to demonstrate the benefits they bring to the public and their various stakeholders (Charity Commission, 2013). Decisions about whether a particular charity (in England and Wales) meets the requirement of public benefit is made by the Charity Commission and in law. In Scotland a broad definition of public benefit is enshrined in law (Charities and Trustee Investment (Scotland) Act 2005), and it is the role of the OSCR to decide whether the charity meets a charitable purpose and is for the public benefit.
Why do we have charities?
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Figure 2Helping homeless people in the past.
View description - Figure 2Helping homeless people in the past.
End of Figure
There are many documented histories of the voluntary sector, with similarities and differences between the fields of interest such as health, social policy, environment and education. In general, early initiatives came from faith-based organisations providing almshouses, schools and care of the sick. Even old-age pensions and unemployment insurance schemes were administered by voluntary organisations.
The government gradually became involved, helped or took over some of these services. The ethos of the early twentieth century was liberal, in that the government saw its role as working with voluntary organisations to provide vital welfare services (Thane, 2011).
The emergence and development of the welfare state in the 1940s meant that the government took over responsibility for providing what charities had previously been providing independently. A general consensus began to emerge as to the role of charities (and other voluntary organisations) within the welfare state:
- A charity should not duplicate or replace what is the obligation of the state to provide. This would be a pointless duplication of effort, and a misuse of charitable funds.
- A charity should seek to complement and supplement what the state provides, pioneering new approaches, enhancing existing services and generally building on the basic provision undertaken by government.
The purposes for which an organisation is established will reflect the interests and concerns of its founders. Many charities have very tightly defined charitable purposes reflecting the founders’ intentions, which restrict what can be done. Although it is an important function of those charged with the governance of charities to interpret the purposes of the charity in light of present-day circumstances, they are only able to vary the purposes of the charity if they find themselves unable to apply their funds for the original objects of the charity. They do this via a process of cy pres, which means that (in England and Wales) they have to apply to the Charity Commission and identify additional purposes that are near the original purposes. A charity for pit ponies might become an animal sanctuary, a faggot society (for collecting wood to burn heretics) might use its money for evangelism and St Dunstan's (which was restricted to treating soldiers blinded on active service founded on a wave of public sympathy after the gassings in World War 1) extended its remit to the welfare of all former service men and women. On the other hand, charities for the relief of girls in moral danger, which were popular in Victorian times (reflecting concern at the molestation of women servants and their consequent pregnancies) still find an active role in rape crisis and women’s aid, which is an interpretation of their objectives in relation to present-day needs.
Start of Activity
Activity 1
Allow about 10 minutes.
Start of Question
Select a voluntary organisation that you have heard of or are interested in and then write notes on the following questions (you may need to look at an organisation’s website or leaflets to find the information). If you are already volunteering or working for a voluntary organisation then you might want to choose that one as your focus.
- When was the organisation set up and by whom?
- What was its original purpose and has that changed? If so, how and why?
- How does the organisation demonstrate its public benefit?
End of Question
Provide your answer...
View discussion - Activity 1
End of Activity
The structure of typical voluntary organisations
The voluntary sector has much in common with other sectors in terms of the legal requirements for business and employment, the nature of many of the tasks that need to be done and the organisational structures that support these activities. There are ways though in which the voluntary sector is unique and one of these relates to the ownership of the organisation.
Start of Figure
Figure 3Common structure of a charity.
View description - Figure 3Common structure of a charity.
End of Figure
Figure 3 illustrates a typical charity structure, which includes a board of trustees who are responsible for the strategic direction of the charity and overseeing administration and management.
- The CEO/coordinator/director will be the main point of contact between the board and the staff/volunteers.
- Volunteers are a key element of voluntary organisations.
- Beneficiaries are often the people being helped by the organisation.
- The target audience might be members or beneficiaries, but could be different if the organisation seeks to influence government for example.
- The regulators include the Charity Commission, Companies House, HMRC.
- The funders may include the people that you’re trying to influence (for example the government).
- Some charities also have members, for example The National Trust.
You will now look at some of these in more detail.
The Board
Whilst shareholders or individuals may own companies, and the organisations may be in public ownership, voluntary sector organisations cannot be owned. Instead they have a board of trustees who act as custodians of the organisation and endeavour to cherish its values and ensure that it fulfils its mission. They have a form of accountability to the many stakeholders including funders, staff, volunteers and beneficiaries.
Boards in voluntary organisations can be called, amongst other things, management committees, executive committees or boards of trustees. If they are registered charities the roles and responsibilities of the trustees are defined in law and overseen by the Charity Commission or the OSCR.
In practice, boards of trustees are groups of people with different motives, backgrounds and skills. Effective boards provide leadership to any staff of the organisation, but do not carry out the tasks at an operational level. If the organisation is small and without any paid workers it is highly likely that the trustees will also be volunteers performing operational tasks. If this is the case it is important for them to be clear when they are acting as a trustee and when they are acting as volunteer workers.
Trustees usually carry out their trustee business by regular meetings, the frequency and timing of which is very dependent on the nature of the organisation. Sub-committees, special-interest groups and steering groups can be set up to run in parallel, involving trustees with special skills and other non-trustee volunteers. These must however report back and be accountable to the management board of trustees.
Trustees come from all walks of life and many voluntary sector organisations are endeavouring to create more diverse and representative boards that reflect their beneficiaries and other stakeholders.
The role of staff
Voluntary sector organisations employ people in a wide range of roles. Professionals such as accountants, marketing and communication specialists, administrators, IT technicians and HR professionals can all be found in the voluntary sector. They are employed because of their specialist professional skills which the organisation needs to deliver its services, raise funds and develop new projects. Frontline staff may include social workers, youth workers, vets, water engineers and counsellors.
Sometimes professional knowledge of other sectors is needed in order to shape a service. Those previously working elsewhere in relevant sectors can bring essential knowledge and understanding such as the nursing profession, education, the arts or the caring professions.
Many voluntary sector organisations are complex and need the same skills that might be needed in other significant organisations, or an even wider range of skills. In most small voluntary organisations staff will be expected to work across a range of areas (for example one person will carry out project work with some HR and IT duties).