Viewpoint

The Charities Act 2006, and other initiatives such as the National and Local Compacts, futurebuilders and ChangeUp, and now the new Treasury Interim Report on the Future role of the Third Sector in Social and Economic Regeneration, demonstrate a commitment by Government to the VCS. Despite this, there is considerable room for cynicism.

On one argument the 2006 Act is little more than technical change and window dressing. It does nothing for instance, to alleviate some of the more structural problems in the sector such as irrecoverable VAT which is valued at about £460 million annually and which erodes the value of Gift Aid by some 42%.

Again the stimulation of the delivery of public services by charities is – in the light of resistance by funders to embrace full cost recovery and the honouring of the Compact more in the breach – arguably simply a device to get charities to subsidise public service delivery with voluntary income. ChangeUp – currently being restructured to be delivered by CapacityBuilders – could be argued to have delivered relatively little at a heavy pricetag.

Government is indeed striving to pave a way to help the VCS further to establish itself as an important and credible force within our society. More needs to be done however if the sector is to fulfil its true potential. As soon as the back-slapping brouhaha accompanying the passing of the 2006 Act has died down, Government would do well to reflect soberly on how best to achieve the best for and from the sector.