First report by Panel on the Independence of the Voluntary Sector

The independence of the voluntary sector is under threat from several angles, including the public spending cuts and new public service delivery models, according to the first report by the Panel on the Independent of the Voluntary Sector. The panel urges the VCS to remain distinguishable from the statutory or private sectors, or it will lose the public trust on which it depends for volunteers, donations, and tax benefits. One of the biggest threats is that nearly a third of VCS organisations state that they now deliver public services, with the panel concerned about the way public services are commissioned gives cause for concern. Other challenges identified by the panel are:

• The sector's inability to influence design, delivery and funding models
• The increasing blurring of boundaries between the three sectors
• The risk of charities censoring themselves in order to maintain their statutory funding
• The risk that independence may slip down the priority list for trustee boards preoccupied with ensuring the survival of their charity
• The need for a regulatory environment that protects rather than hinders independence.

The panel asks the government and private sector to help protect VCS independence by including social value in contracts, encouraging advocacy on behalf of those without a voice, and working to remove barriers to smaller organisations taking part in service delivery. It calls on trustee boards to ensure that the protection of independence, and of their organisation's mission and purpose, are built into self-audits and risk registers. The panel will continue to monitor the status of VCS independence throughout 2012 and will report again in a year's time.