Report calls for funding shake-up

An independent ombudsman to “name and shame” organisations guilty
of bad practice in the way they contract with the voluntary sector
should be established by the government, a new report
recommends.

The proposals are in a study into government-funding of the
voluntary sector by New Philanthropy Capital and published this
week by the Association of Chief Executives of Voluntary
Organisations.

Acevo chief executive Stephen Bubb welcomed the call, saying that
delivering public services would give charities a great opportunity
to improve people’s lives.

The ombudsman, an accreditation body to kitemark funders and a
penalty scheme for those who fail to comply with a funding
framework should be put in place by 2006, says the report.

To achieve the kitemark, funders would have to abide by several
principles, including giving multi-year contracts and allowing an
appropriate timescale for service development.

The report also proposes new funding models, including “year-zero
grants”, which would give organisations time and money to become
established before being expected to deliver services.

Head of the National Consumer Council Ed Mayo said: “The research
has uncovered an archaic, deeply inefficient array of funding
models, which stifles more effective action and leads to
debilitating insecurity.”

l Surer Funding Framework from www.acevo.org.uk