Events

Reflecting on the Future Charity Event

At a time of global, societal and political uncertainty, the Future Charity research has identified a number of systemic barriers to transformation within the sector, hindering its ability to meet a growing need. To address these challenges and start a journey towards sector-wide change, we’ve have developed a number of actions we call all take, to make a difference.”

The Future Charity report found that the sector is experiencing a crisis of confidence about the future. Rising inequality, an ageing population and already-happening climate change are combining to create a greater-than-ever need for the services of charitable organisations. But the ability of the sector to adapt to the changing expectations of supporters, keep pace with new technologies, and meet the increasing needs of beneficiaries is hindered by fear.

Our event during the summer, saw 60+ sector leaders come together to dive deeper into the findings of the Future Charity research and built on the actionable next steps identified in the report.

Attendees included CEOs, Directors, Trustees and change-makers at all levels of the sector’s rigid hierarchy.

The room buzzed with inspiration and, for some, a harsh realisation that things need to change, and now.

Much like many of the crises we are facing right now as a society, change isn’t going to be easy and will require huge action. A sixteen-year-old put it better than I ever could when she said:

“If solutions within this system are so impossible to find then maybe we should change the system itself,”

Greta Thunberg

Perhaps we need to look at things completely differently.

But in the meantime, there’s so much within the system that could have a tangible impact if we can build the confidence to step outside of our boxes.

A group of sector leaders and consultants are working together to drive disruption across the sector before it is too late.

If you would like to be involved, get in touch kelly@kivotransformation.com

1. (RE)DEFINING PURPOSE

Charities in the UK face multiple, converging crises. While the need for charities is greater than ever, trust is down, income is dwindling, and there is new competition from a purpose-driven commercial sector.

Purpose is more important than ever to remain relevant, regain public trust, fend off commercial competitors.

THE BARRIERS

Growth at all costs

Charity organisations are locked within a framework which makes growth an imperative and prioritises financial indicators over other measures of success, so charities ‘chase pounds, not purpose’.

Saturated market

Market saturation, fragmentation of messaging, brand dilution are problems. According to the Charity Commission in 2018, there are 167,972 registered charities in England and Wales, and there could be as many as 400,000 charities in the UK.

Trying to do too much

An inability to measure real-world impact leads to a lack of focus. When we can’t measure success effectively, doing more becomes a proxy for doing better. This is less true in fundraising, which is why so many large charities are now focused on fundraising over delivering services and support.

Divided loyalties

It’s only natural that strong relationships and shared challenges mean that loyalties to colleagues, team, department and organisation often trump loyalty to the cause. Rigid hierarchies, silos and a lack of diversity among charity employees only compounds the problem.

THE SOLUTIONS

Differentiation

With the competition so intense, is your charity’s purpose distinct enough from other organisations to avoid a duplication of efforts? If not, can your purpose be refined and focused to differentiate your charity from its nearest competitors in both the charity and commercial sectors?

Consolidation

If you can’t differentiate yourself from your nearest competitor, is it time to consider a merger?

Strategic collaboration

Where purpose overlaps with another organisation, can you collaborate strategically to fulfil the purpose of both? Save the Children’s partnership with GSK has immunised nearly 100,000 children against preventable diseases and trained over 20,000 health workers.

Measuring more than just income

Can financial indicators be replaced with ones that align more closely with purpose? We’ll revisit this topic in our section on ‘Measurement’.

Quantify the need that the purpose is delivering against.

Check with stakeholders and beneficiaries to ensure they support and understand that need. 

Pilot sharing and collaboration across charities

Identify charities to explore a collaborative pilot across their shared purpose, and work in partnership to deliver impact

2. BUILDING CONFIDENCE

We know that change is needed, that charities need to be brave and take risks. And yet a culture of inertia prevails among leaders. How can we find the confidence to deliver the bold leadership that’s needed?

THE BARRIERS

Fear of failure

Making brave, bold choices to enable transformation necessarily comes with risk attached. It also requires a huge effort to bring everyone along with you – pockets of power within your organisation can disrupt your plans if you don’t do enough to win their backing.

Consequences of getting it wrong

In a climate prevails, taking risks which don’t pay off could see you labelled as unreliable,

irresponsible or negligent. Given the small size of the charity leadership job market, this could have disastrous personal consequences.

Isolation of leadership

Hierarchical structures leave the top isolated. Unpaid trustees aren’t sufficiently engaged, or don’t have time available, to provide support. Competition between charities leads to little support between peers.

Leadership capability gap

Most will acknowledge that leaders in the charity sector lag behind their counterparts in the commercial sector – both in terms of technical understanding and soft leadership skills. This is the consequence of a tendency to promote from within, often too early, leaving little time to develop these capabilities.

THE SOLUTIONS

Finding the right people for leadership roles

Charities can do more to attract experienced agents of change from a wider variety of backgrounds, instead of just defaulting to the restricted talent pool that already exists within the sector.

Coaching and mentoring

To address the skill and confidence gap that exists in leadership positions, charities could provide coaching and mentoring for those who need it. Mentors should bring outside experience wherever possible.

Build appetite for risk at board level

Trustees have an important role to play, since their appetite for risk determines how bold and brave leadership can be. Now is the time to reassess policies and attitudes to risk management.

Ring fence resources for innovation

Successful innovation requires failure. Resources should be set aside for conducting experiments where no immediate return on investment is expected.

Cross sector support forums

The charity sector must build better support networks to combat the isolation of leaders, and help them share knowledge and experience of operating effectively within the charity governance structure.

Leaders acknowledge the urgent need for change

Build an honest, vulnerable and authentic dialogue. Start by sharing the report far and wide across all roles in the sector, whilst bravely sharing our own fears and vulnerabilities.

Prioritise time for coaching and self-understanding.

All leaders to understand and confidently share their personal mission, values and purpose

Build reverse mentoring schemes

Prioritise time for leaders to experience the reality of operations within their charity and welcome an uncensored experience, warts and all!

Invest time to build alliances

Build sustainable unconditional relationships, cross-organisation and cross-sector, and work together to down traditional ‘barriers’ such as legacy team divides and internal competition. 

Increase diversity at board level immediately

Invest in coaching of trustees at a team and individual level. Welcome younger, female and minority trustees. Perhaps reward trustees to make the role more accessible to all.

Build confidence to take risks:

Educate trustees in their role in change. Encourage trustees to call for uncensored content from the organisation on the transformation opportunities and the impact of doing nothing.

Encourage individuals to ‘disrupt’ and challenge the status quo

Take recommendations and advice even if it jars with traditional culture and is hard to do. Build trust in external and internal disruptors and encourage new ways of thinking.

3. SECURING THE RIGHT PEOPLE

Charities are not delivering the compelling marketing that is increasingly important amidst competition. Culture, leadership, skills and investment stand in the way of opportunities from technologies.

THE BARRIERS

Lack of diversity

Diversity of organisations doesn’t match that of wider society and is reflected in a lack of diversity of thinking.

Below market salaries

It is accepted as a rule in the charity sector that you will earn less than people doing equivalent jobs in the commercial and public sectors, and charities struggle to attract talented people from other sectors.

Lack of leadership follow through

It is demotivating to the wider organisation when leadership launches strategic initiatives but fail to follow through. Staff feel like they’re going through the same motions every few years.

Poor incentives

It is difficult to fire under-performers and impossible to give bonuses to high-fliers. Over time, those who underperform see little point in improving and those who excel see little reward for their extra efforts.

Lack of proper management

Management practices fall far short of what is considered best practice in the commercial sector.

Disengaged trustees

The unpaid trustee role may be a barrier to attracting trustees from diverse backgrounds, and can mean that trustees are taking on their duties in addition to a full-time job, so have limited time to invest.

THE SOLUTIONS

Remote and flexible working

Now an essential part of the employer’s offering to potential new employees. Only 6% of employees in the UK now work a traditional 9 to 5 day and unions have recently made calls for a four-day working week.

Active recruitment strategies

We need new kinds of active recruitment. Particularly for senior appointments, candidate sourcing has to be active. Competition is too intense and passive strategies too time consuming.

Pay market rates

competition between the charity and purpose-driven commercials means that charities have to be able to draw from the same pool of talent, so need to pay more.

Upskill leadership

People want to work with inspiring leaders who can help them grow and develop. Coaching and performance management skills must be a priority.

Dual-track progression

A dual-track career path allows upward mobility for employees where they follow an increasingly specialist path, developing their skills to add value to the organisation.

Improve incentives

Consider paid secondments every two years and reserve time for development and innovation

Improve salaries and reward

Increase space for competitive salaries by funded overheads separately from services and activities. Expose the impact of the salary problem 

Pay interns

Pay interns to increase diversity and encourage input to strategy and decision making. Create apprenticeships in fundraising.

Encourage diversity of thinking and difference of opinion

Diversity is more than that which can be seen. Encourage and celebrate people who are different and challenge the norms

Inclusive recruitment strategies

Ditch competency based interviews and perform name/education blind selection to remove unconscious bias.

4. MEASURING MEANINGFULLY

Charities need to recognise that each individual wants or needs to relate to the cause in a different way, and the customer experience along with the impact of the change is what matters, above financial turnover.

THE BARRIERS

Not knowing what to measure

Like many organisations in the digital age, charities can find themselves drowning in data, without any insight into what’s worth measuring and what’s irrelevant.

Too much emphasis on financial data

The charity model places an emphasis on the financial responsibilities of board members, so financial data takes precedence. It’s usually the easiest to gather and most familiar for audiences to digest, and so tends to serve as a proxy for other, non-financial performance indicators.

Only reporting the positive

A fear of exposing failure results in cherry picking data to fit a narrative of success, or retroactively changing the parameters of success to fit the data, which has the power to shift an organisation off course.

Neglecting impact measures (until the Annual Report)

Outside of annual reporting, or creating stories for marketing, it’s hard to build any focused engagement with developing measures of impact.

THE SOLUTIONS

Build a data-savvy culture

Set out an organisational approach by deciding which data points are important for measuring progress towards strategic goals and then train everyone, including leadership, in  how to use them.

Introduce honest reporting

When leaders own their failures, and show how those failures can be used as a learning opportunity (partially due to the data they generate), it encourages everyone else to do the same.

Set non-financial KPIs

Financial performance indicators must be accompanied by non-financial KPIs. The amount of money spent on a problem is not a measure of impact. Use creative approaches to measure new things.

Longer reporting periods for impact

The delay between funding an intervention and seeing its impact can be significant. The reporting basis should be adjusted accordingly.

Invest in data capabilities

Digital means it’s getting easier to track progress and gain behavioural insights, but harder to join it all up. Tool, people and external support can help you to make best use of them.

No more ‘penny in the pound’

The ‘x pence in every pound goes directly to the cause’ measure of charity effectiveness is not standardised and isn’t appropriate as a direct comparison between two charities with different operating models.

Work with trustees start using metrics for honest evaluation and learning, and stop using metrics to manage and control. It’s ok to not be ok.

Sector-wide key impact metrics

Collaborate to develop sector-wide key impact metrics for comparisons and learning, create a framework to promote sharing and honest evaluation.

5. COLLABORATING ACTIVELY

Only by working together can charities address the lack of trust and perceived lack of accountability across the sector. How can we consider sector consolidation, either through mergers or through forming alliances to free up resources for innovation in fundraising and service delivery?

Collaboration across the entire sector could address the issues of eroding trust, reinvigorate the culture of giving, and tackle the failing trustee model.

THE BARRIERS


Reluctance to share information

Organisations tend to treat all data as confidential by default, even when that data isn’t commercially sensitive. Intense competition exacerbates this tendency, making it hard to gain an accurate picture of key features of the sector (and forcing a reliance on third-party surveys.

Internal reporting is unfit for purpose

There is a lack of confidence in the data generated internally by most charities. When two departments come up with different numbers, which would you share with external organisations? Or do you own up to the inconsistency, and make yourselves look foolish?

Can’t see the value of collaboration

The value of collaborative efforts across the entire sector, or even across sub-sectors, isn’t immediately apparent to individual charities wrestling with their day-to-day challenges. In addition, any such collaboration is likely to take some time to pay off.

Lack of joined-up thinking

Current efforts at collaboration between charities are ad hoc (e.g. Gradunique), small in scope and inconsistent. The lack of a sector-wide vision precludes the possibility of tackling strategic objectives over the long term.

THE SOLUTIONS

Build consistent sharing

A framework needs to be established for the consistent sharing of non- commercially sensitive data across the whole sector. Understanding prevailing trends in giving, fundraising, volunteering and more are essential for confronting the challenges presented by new technologies and rapid social change.

Embrace the whole sector

The press often takes aim at the sector as a whole but responses come only from individual charities or organisations without the authority to speak for the whole-sector. Building a collective voice requires participation in long-term conversations and initiatives with other charities that have the potential for taking practical action.

Create a shared enterprise

One of the goals of a collective body could be to set up a social enterprise to provide charities with enterprise-level technology – a commercial venture that puts all its profits back into developing the capabilities of the sector and reducing its reliance on for-profit platforms.

Define what true collaboration looks and feels like internally, first. Then be bold and honest around what is getting in the way of effective collaboration.

Change the way we talk about competition and collaboration. Identify where language holds us back.

Build the urgency and essential need for collaboration to deliver our purpose. What will staying the same cost us? 

Create a narrative and language that shows we’re all in this together. Build clarity of purpose of the sector and its role within society. 

6. LOOKING BEYOND THE SECTOR

Improved partnerships with private sector could help charities ‘follow fast’ when it comes to keeping up with technological innovation.

Utilising the specialist skills, capabilities and access of commercial organisations would also help inject new energy into the sector and help it learn how to compete.

THE BARRIERS


Perception of charities as difficult

There is a widespread perception in the commercial sector that charities are slow, weighed down by bureaucracy, saddled with incompetent staff and generally difficult to work with.

CsR effect

For may commercial companies, charity partnerships are more of a box- ticking exercise in corporate social responsibility than a strategic, purpose- driven effort to bring about real change.

Lack of purpose synergy

Not every commercial is suitable to partner with but ensuring that a large, multinational company with complex operations and diverse suppliers.

Focus on ‘corporate’ partnerships

An historic focus on corporate partnerships (i.e. donations from corporate entities in return for publicity) has left many unaware that strategic collaboration is even possible.

Fear of relinquishing control

Risk aversion leads to a fear of handing over strategically important functions to commercial partners, even where the value of doing so is clear.

THE SOLUTIONS

Bake external partnerships into strategy

Charities should identify the big challenges that could be solved with help from the commercial sector and then make realising those partnerships a strategic imperative.

Shift innovation focus to include partnerships

Resources that are ring-fenced for innovation could come with a directive to seek external partnerships wherever possible. Successful small-scale experiments could have the potential to scale up.

Reduce barriers to participation

Often for-profit companies are excluded from sector events or charged prohibitive fees to participate. Removing these barriers would provide a greater diversity of potential partners (i.e. not just those with products and services already aimed at the charity sector).

Use partnerships strategically

Partnerships should be reframed as first and foremost an opportunity to cut costs or achieve things that otherwise couldn’t be done. Corporate partnerships should become an afterthought.

Gather insights from other industries

Gather insights and encourage discussion as to how they can apply what they’ve learnt, across all levels of the organisations.

Imagine we are commercial organisations

Charity leaders to imagine themselves as commercial organisations and define how they would develop themselves to be attractive “targets” for acquisition.

Create purpose driven partnerships

Start discussions around forming purpose driven partnerships to enrich each others’ work, not on a financial loss or gain basis.

Consider totally different models

Start by copying others outside the sector.

Giff Gaff – community run,

Amazon – speed,

JLP – partnership

Charities: How we can overcome fear to make a difference

Future charity

Starts: 6:00pm Tuesday, 23 July 2019

Ends: 8:30pm Tuesday, 23 July 2019

Location: Citi Bank, 33 Canada Square, Canary Wharf, E14 5LB

See map: Google Maps

Register here

Rising inequality, an ageing population and already-happening climate change are combining to create a greater need than ever for the services of charities. However, the ability of the sector to deliver is under question. How can the sector break through the culture of inertia and change for good?

Join leaders from across the charity sector at this thought-provoking event to discuss the findings of the Future Charity research and to explore how each of the themes below will be central to the sectors success.

  • (Re)defining purpose – How can charities revisit their charitable purpose to remain relevant, regain public trust, fend off commercial competitors, and help meet the growing need for the services they provide?
  • Building confidence – A culture of inertia prevails among charity leaders. How can they find the confidence to deliver the bold leadership that’s needed? 
  • Securing the right people – How can culture, leadership, skills and investment be optimised to make the most of the positive opportunities presented 
  • Measuring meaningfully – How can we put data around impact at the heart of decision making and make the experience and behaviours of all audiences as important to us as income?
  • Collaborating actively – How can entire-sector collaboration address the issues of eroding trust, reinvigorate the culture of giving, tackle the failing trustee model and help charities prepare for the challenges that lie ahead? 
  • Looking beyond the sector – How can the specialist skills, capabilities and access of commercial organisations be utilised to help inject new energy into the sector and help it learn how to compete with commercials for the best talent?

Speakers

Richard Taylor

Richard Taylor

Richard has worked in the charity sector for over 20 years in fundraising, marketing and communication leadership roles. He was a member of the executive board at Cancer Research UK for 12 years and for the past three years at Macmillan Cancer Support. He also served as Chair of the Institute of Fundraising. He is now an executive coach and works with many of the top UK charities to help individuals thrive and excel in their demanding roles.

Richard will be joining us to discuss how, as leaders, we can overcome fear and have the confidence to galvanise our influence

Michael Docherty

Michael Docherty

Michael Docherty is Interim CEO of Air Ambulance Kent, Surrey and Sussex (AAKSS), world leader in pre-hospital emergency medical services.

Previously, he held the role of Trustee and Chair of AAKSS’s Income Generation Committee. Prior to that, Michael as Director of Digital and Supporter Experience at Cancer Research UK, he led digital transformation, driving lasting change through a new operating model, and accelerating digital income growth.

With 20 years’ experience gained across the commercial and charity sectors, Michael was recognised as a key player in the UK digital marketing industry in the 2018 Digital Leaders 100, the 2013 BIMA Digital Hot 100 and the 2013, 2014 and 2015 Drum Digerati.

Claire Rowney

Claire Rowney

Claire is Executive Director of Fundraising, Marketing and Communications at Macmillan Cancer Support. Previously she has held leadership roles at Save the Children UK and Cancer Research UK.  Claire has managed diverse portfolios including Race for Life and Stand Up To Cancer, marketing transformations, innovation and corporate partnerships.  Claire is a trustee of the Institute of Fundraising and mentors fundraisers in the UK and overseas.

Asif Afridi

Asif Afridi

Asif Afridi is a published researcher promoting equality and human rights. He is Deputy CEO at brap, a national equality and human rights advisory organisation, transforming the way we think and do equality. Asif sat on the Civil Society Futures Inquiry Panel and continues to plays an active role.

Olivia Curno

Olivia Curno

Olivia Curno CEO of Greater London Fund for the Blind and Trustee of UK poverty charity Turn2us. Olivia previously ran fundraising and communications at children’s charity Place2Be and autism charity Autistica. Before joining the charitable sector Olivia was a lecturer in Evolutionary Biology.

Linda McBain

Linda McBain

Linda is Digital Director of Save the Children, leading on the organisation’s digital transformation, to ensure the charity is fit for the future and delivers experiences expected by today’s consumers. With 12 years’ experience as a digital leader in the not-for-profit sector, Linda has developed award winning campaigns such as the ’Most Shocking Second a Day’ video which has had 61 million Youtube views, and Christmas Jumper Day, where Jumper selfies and donations have become a seasonal social media highlight.

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