INTRODUCTORY OVERVIEW

Resources

Additional key resources are provided in this section, most of which are available FREE of charge. Resources you have to pay for are marked with a £ sign.

Procurement and tendering: processes and regulation

This Expert Guide from the Finance Hub provides a background to the new emphasis by purchasing authorities on tendering for contracts rather than providing grant aid for organisations.

Grants or contracts?

This Expert Guide from the Finance Hub provides a background to the new emphasis by purchasing authorities on tendering for contracts rather than providing grant aid for organisations.

Grants and donations

More information about types of grant funding is available from this section.

Full Cost Recovery (175 KB, .pdf)

A downloadable .pdf (176kb) introductory guide to the main principles of Full Cost Recovery. It contains a simple stage by stage guide of how to calculate costs and decide what to include as overheads.

Guide to Procurement and Contracting (600 KB, .pdf)

Downloadable 40 page .pdf (600kb) produced for the Finance Hub by NCVO Sustainable Funding Project. The document introduces procurement and contracting. It includes advice on how to approach agencies who may want to buy your services, assessing whether you have the capacity to deliver a contract, explaining different forms of agreements, and looking at the tendering process.

Tools for Procurement and Contracting (404 KB, .pdf)

Downloadable 35 page .pdf (405kb) document produced for the Finance Hub by NCVO Sustainable Funding Project. The document provides a series of exercises and checklists designed to support advisers working with groups on procurement and contracting. It includes materials designed for those just starting to look at contracting (introductory), those ready to explore the topic further (intermediate), and for those wanting to look at contracting more seriously (advanced).

Surer Funding (160 KB, .pdf)

Downloadable .pdf (161kb) briefing paper - an introductory guide for organisations currently delivering, or looking to deliver, public services.

Guide to Trading (830 KB, .pdf)

Downloadable 32 page .pdf (831kb) produced for the Finance Hub by NCVO Sustainable Funding Project. The guide introduces trading, explains how to prepare for trading, and explores different types of trading activity. It includes practical tools for advisers and groups to use and case studies.

Taxation

Taxation is a complex area that affects charities, voluntary organisations and social enterprises in different ways. If you think your organisation has some taxable income you need to seek some expert advice on your particular circumstances.

Guide to Financial Management (625 KB, .pdf)

Downloadable 44 page .pdf (652kb) produced for the Finance Hub by NCVO Sustainable Funding Project. The document looks at why financial management is important and covers a range of topics, including developing a financial strategy, budgets and cash flow management, book keeping and financial accounting. It also looks at tax and at financial management and governance. It includes good practice advice, examples and templates for advisers and groups to use.

Value Added Tax

VAT is a complex area that affects charities, voluntary organisations and social enterprises in different ways. If you think your organisation has some VAT-able income you need to seek some expert advice on your particular circumstances

Local authority contract

Get ready for that local authority contract - The success rate of third sector organisations tendering for public services could be increased with improved support. In particular with information to plan for rapidly changing opportunities. This project aims to improve organisations’ chances of knowing when they are ready to secure contracts, by enabling their self assessment against new pilot benchmarks and pricing of services.

Local authority grants

The decline of local authority grants – fact or fiction?  - There is a widespread perception in the third sector that grant funding from local authorities has declined significantly. This Finance Hub-funded national research examines the real state of local authority funding, the drivers that are fuelling change and the financial, structural and developmental consequences for third sector organisations.

Researching Tender opportunities

This section lists some of the key sites where public sector contracts may be advertised and a range of Finance Hub resources on procurement, tendering and contracting are also listed at the end of this section.

Leonard Cheshire: an innovative partnership for high-risk services

This case study is an example of a social care voluntary organisation which successfully negotiated a variation to the standard terms and conditions of a service delivery contract. The variation placed the risk of increased revenue costs on the commissioner of the service which enabled a significant development of the service to go ahead.

ECT Group (formerly Ealing Community Transport)

This case study is an example of how securing longer term contracts — up to seven years — enabled development and growth of a community transport organisation to be financed.

Carers’ Sitter Service (CSS)

This case study describes how a social care organisation fell foul of increasing regulation (National Standards). The changes to the regulations meant that volunteers could no longer carry out key roles and this would have prevented the service from being delivered. After several months of negotiations by the organisation they succeeded in getting their service re-classified — which allowed it continue.

Community Network

This case study outlines how a voluntary organisation used Full Cost Recovery for the first time. The group had an opportunity to secure a long term contract and needed to make sure that the contract would pay the full costs of delivery. Although this was difficult at first and took time they have reaped the benefits of introducing this additional rigour into their costings.

Sue Ryder Care: We Care: Who Pays?

This case study demonstrates the current difficulties in achieving Full Cost Recovery faced by many in the sector who are contracting with social care service commissioners. Sue Ryder Care identifies an alarming ‘post code lottery’ and short fall in the funding of the statutory care services they deliver. They have launched a campaign — ‘We Care: Who Pays?

Examples of purchasing practice

Three very short examples of public sector service commissioners awarding long term contracts to voluntary and community organisations.

  • Esk Moors Caring Ltd: a new organisation developing care services for the elderly in a rural area negotiated a seven year contract
  • Broadreach House: an organisation delivering services to drug users moving out of a period of EU funding is developing a wider range of services through sustainable commissioning.
  • Building Blocks Solutions: a relatively new mental health voluntary organisation developed strong relationships with GP surgeries and so was well placed when GP practice based commissioning was introduced.

Delivering 'Supporting People' through the voluntary sector in Lambeth

This case study from IDeA is an example of good practice in service planning and commissioning. It outlines how a public sector commissioner involved the local voluntary and community sector in service planning and in designing the service commissioning processes with the aim of increasing the sector’s involvement in service delivery.

Care and Repair

Care and Repair helps older people, disabled people and people on low incomes to live in safe, warm, secure, well maintained and adapted homes. This case study looks at Care and Repair’s plans to meet the challenge of generating revenue from opening new markets for the organisation.

Delivering a contract in a consortium

Smaller groups often need to work with others to deliver services and attract contracts. This case study looks at how a training provider — Myways — delivered a contract as part of a wider consortium. It outlines the challenge involved in meeting the bureaucracy involved in managing the contract and how being part of a consortium assisted in the process.

Charities and Public Service Delivery: an introduction and overview

Charities and Public Service Delivery: an introduction and overview is a guide from the Charity Commission, highlighting legal and other issues, as well as good practice on charities and public service delivery.

RS15 Stand and deliver - The future for charities providing public services

(Version February 2007)
In recent years the role of charities in public service delivery has become a much debated issue. The Charity Commission commissioned work to consult with charities on the issues. This report summarises the results of this work.

NCVO

The NCVO provides case studies and advice on joint working for public service delivery, including issues around contract working.

NCVO: the Compact

NCVO offers advice and information on the Compact, as well as an advocacy service when there have been breaches of the Compact.

The Compact

Information, news and downloadable tools on the Compact.

Supply 2

A new government-backed service, designed specifically to give companies easy access to lower-value contract opportunities (typically worth under £100,000) offered by the public sector.

Government funding.org.uk

Contains a lot of accessible and useful advice including guidance on how to apply for funding, and A-Z of funding terminology and links to agencies providing further help. You have to register with the site to get at the content - this is free if your turnover is less than 500,000 pounds a year but you have to pay if it is higher.

The Office of Government Commerce

The Office of Government Commerce is an office of HM Treasury that aims to improve standards in procurement and increase value for money in government spending.

Contracts database

A searchable contracts database that signposts current and future OJEU (Official Journal of the European Union) compliant frameworks and contracts available to public sector purchasers.

Consortia delivery of public services

With public bodies reducing the number of contracts they hold, the NCVO’s Collaborative working Unit explores three consortia models for voluntary and community organisations: a new legal body, one organisation takes lead responsibility or an external non-delivering organisation takes the lead.

The future of commissioning - leadership challenges

acevo/futurebuilders joint publication (pdf 2,757 kb).
All too often the relationships between public service commissioners and third sector organisations prove difficult to manage, with third sector organisations often left thinking ‘They don’t know how to buy and we don’t know how to sell.’ This report provides examples and learning points on how third sector leaders and public sector commissioners can work together to design and deliver excellent public services.

 

Successful procurement and negotiation in the third sector

 

Get ready for that local authority contract