The latest commission guidance, ‘Charities and Contracts’, is intended to strengthen charities’ involvement in public-service delivery. It aims to help charities new to the contract culture overcome difficulties.
The report emerged at a time when experts are warning that charities are becoming increasingly dependent on local authority contracts for their income.
Adrian Randall, charity partner at Moores Rowland, said: ‘Charities are agents of local authorities, whether they like it or not, where they are providing services which were previously provided by the authority.’
Local authority funding of charities and voluntary bodies amounts to about #1.2bn annually. An increasing proportion of this funding is paid to charities, not as discretionary grants, but as fees for services they are contracted to provide to the public as agents of local authorities.
Chief charity commissioner Richard Fries said: ‘Strong partnerships between charities and public bodies are essential to the delivery of good quality, value-for-money public services in fields like social welfare, health and education.’
The guidance highlights areas of potential difficulty. It urges charities to ensure they abide by their constitution when providing contract services, suggests how far charities can go to use their own funds to finance services, and advises charities on how to handle conflicts of interest.
A new head of solutions, Aidan Brennan, has been appointed at KPMG UK
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast