Charities have more power and influence than they may realise, says Lianne Lodge of law firm Gillespie Macandrew
It is never easy being a charity and especially so in recent times with ever tightening purse strings and constant cost-cutting efforts across the board. Charities are also under intense scrutiny with more rules to adhere to and public condemnation for any who fail to reach standards or commit any breaches.
It could be easy to feel despondent but as always, there are two ways to look at any situation.
Special challenges are faced by charities which are mainly, if not fully, funded by local authorities. The tendering process has become very rigorous and charities are up against private organisations to do the same job. Moreover, charities are often held to a higher standard by the public.
It is only when there is a vigorous and resilient charity that it is in the best position to help those it was set up to serve
Lianne Lodge
Gillespie Macandrew recently ran a seminar where most of the attendees were charities who are in the position of being predominantly funded by local authorities. Because of this, many of the charities felt at a disadvantage and there was a general feeling of being “on the back foot” when it comes to negotiating contracts.
It occurred to me that this can be looked at from another angle. In many cases local authorities are subcontracting/outsourcing services which they have a statutory duty to provide, for example the provision of care. In this instance, charities do have a solid footing to negotiate from, as without their assistance and provision of care, the local authorities could be falling foul of their duties.
It is important for charities to remember that they provide very good services to high standards. There is a need and a place for them in society and they should not undervalue themselves. In other words, charities have more power and influence than they may realise. They also frequently have the expertise, experience, contacts and the right approach and attitude to make them unbeatable on many fronts.
In my view, charities are getting better at fighting their corner but there is still a reluctance to do so in some circumstances. Perhaps there is a feeling that charities should not compete against private companies to provide services or that it is somehow unseemly for charities to be competitive and strive for more recognition - that they should be looking after other people and not looking after themselves. However, it is only when there is a vigorous and resilient charity that it is in the best position to help those it was set up to serve.
Lianne Lodge is an associate at law firm Gillespie Macandrew.
