Charities and firms plan joint ventures

Charity and business leaders are drawing up plans to develop hybrid organisations in a bid to win major public service contracts.

Large voluntary and private sector agencies aim to create arm’s-length partnership bodies to win contracts in social care, health, education and even to run prisons.

The plans are being developed jointly by the Association of Chief Executives of Voluntary Organisations and the Confederation of British Industry.

Acevo has held meetings with companies such as Serco, Accord and Capita, and charities such as Rethink, United Response and Thames Reach Bondway, and reported strong interest from both sides.

Acevo’s head of strategy and communications Nick Aldridge said private sector involvement would make it easier to borrow money and help isolate charities from financial risk.