Recent articles in The Times and Financial Times discuss the ways in which charities should handle the public sector cuts. It is suggested that charities should look in-house and make cuts of their own, through reduction in fixed overheads and management structures.
We believe this is self-defeating. It is our opinion at Everyclick that there is now an opportunity for charities to look towards growth, through new revenue streams. It would be nice to think that charities can rely on goodwill alone to counteract the cuts, but unfortunately this is unlikely to be the case. There are many mechanisms available to support charities that should be investigated further and taken advantage of, such as social enterprise, which provides a window to specialist, sustainable support for charities. The Government Giving Green Paper went some way to initiate a discussion, but the notion of social entrepreneurship needs to be expanded, popularised and, most importantly, understood by the third sector and supporters.
There are huge opportunities out there to fill the funding gap in new and innovative ways. Give as you Live for example, represents an additional £1.25bn in potential unrestricted revenue for the charity sector in 2011. With charities receiving less support from the public sector, social entrepreneurship could be the key to fill the funding gap.