Item 6 - London Councils' Survey of Boroughs on Third Sector Infrastructure (GTS18/7)

Summary    

Emerging from the Review of the Grants Programme 2013/17, a work plan for London Councils was established to ensure that the local authority voice was heard in:
1.    Independent funders’ funding of voluntary sector infrastructure.  This followed an invitation from City Bridge Trust, which boroughs had welcomed
2.    The third sector in London’s remodelling of infrastructure in response to changes in areas such as funding and technology, under the banner of the Way Ahead, the report of a study convened by London Funders.
To underpin this, London Councils has carried out a survey of all boroughs to establish:
1.    The state of the third sector infrastructure in each borough
2.    Each borough’s relationship with this, including any funding of it
3.    Their engagement with the Way Ahead
4.    Their approach to commissioning the third sector and any current intentions to do so.
London Councils convenes a group of grants officers representing each borough.  The survey was sent to them to complete, and copied to Grants Committee members.
To date 24 boroughs have responded.  This report contains the findings of the survey.

Recommendations

1.    Members are asked to note the findings of the survey.  Attention is drawn in particular to the following findings:
Current Position
a.    Councils for Voluntary Services (CVS) have historically existed on a borough basis.  They have been considered a cornerstone of third sector infrastructure.  The survey shows there is a CVS in 19 of the 24 boroughs that responded to the survey.  
b.    Of the 19, the local authority commissions 10, and grant funds eight.  In one case, the council provides no funding.  Although the term ‘commissioning’ is not precisely defined, it implies a stronger focus of results in return for funding than traditional grant funding.  This may be in the form of a conditional grants regime or a contract following procurement.
c.     Just over 50 per cent of the boroughs that fund the CVS award the funding for one-to-three years with the remainder split between one year, and three-to-five years.  This may point to boroughs’ desire for funding stability for their local infrastructure support but within current financial constraints.
d.    CVSs provide a similar range of services in their boroughs.  Nearly all provide fundraising support, governance and organisational development and training. Around half support financial management.
e.    Some funders have encouraged bids for funding by consortiums – generally to improve service co-ordination and provide efficiencies by reducing duplication. The survey shows that around half of CVSs either lead consortiums or do so through special purpose vehicles.
f.    16 of the 24 boroughs have a compact, but of these, only 10 have been refreshed.  Nine have a VCS commissioning strategy. So, although there is no overall approach to the sector, there is an intention to take a strategic view on this across a good number of authorities.
Forward Look (how boroughs would like infrastructure services to delivered in future)
g.    All borough officers were asked whether a range of third sector infrastructure services (13 in total) - including financial management, employment and HR advice, safeguarding training - should be provided.  Respondent’s had the option to reply: ‘not at all’, ‘locally’, ‘sub-regionally’ or ‘regionally’.  Respondents thought that all but two services should be provided locally.  The exception was employment and HR advice and health and safety training, which it was thought, should be provided regionally.
h.    Seven boroughs said their work had been influenced by the Way Ahead, particularly in areas such as co-production and convening and enabling communities.  13 borough officers were waiting for more detail before taking action and two were not aware of the Way Ahead.
i.    13 boroughs have a local giving or crowdfunding scheme, often facilitated by an existing local foundation.
j.    The sector often questions the need for boroughs to have such varying approaches to commissioning, given the cost of bidding for potential funding.  The survey asked boroughs to identify potential common commissioning principles.  There were a wide range of responses. Transparency, collaboration, outcomes and evidence base, value for money and social value and equalities were the most selected.  This suggests there is a commonality at the level of principles but there is less consensus around the practicalities at present.
2.    The survey confirms much anecdotal evidence that the relationship between boroughs and third sector infrastructure is diverse and changing.  The historic relationship between council and CVS is still strong in many areas, but funding shortages are putting this under pressure. Perhaps filling this space, crowdsourcing is making headway in many areas, particularly those with established, local ‘giving’-type foundations.  There is an appetite among borough grants officers to learn from strong ideas and effective practice emerging from the Way Ahead.
3.    Subject to any further views members have at this point, London Councils proposes to use the survey findings to inform its work on the third sector infrastructure action plan commissioned by the Committee and to share the results with City Bridge Trust and other relevant independent funders and London Funders, and those working on the Way Ahead.