| Synopsis: |
The third sector includes voluntary and community organisations, charities and social enterprises. In 2002, a Treasury review found that third sector organisations did not have the appropriate skills and resources, or capacity, to contribute to the delivery of public services to the extent that the Government wanted. In 2004, the Home Office introduced two programmes to build the capacity of the third sector: ChangeUp; and Futurebuilders (both now the responsibility of the Office of the Third Sector, part of the Cabinet Office). Together the programmes will cost almost GBP 450 million to 2011. ChangeUp gives funding to regional and local support providers to form partnerships or 'consortia' to work to provide services to make frontline organisations more effective. Futurebuilders is a GBP 215 million investment fund that invests directly in frontline third sector organisations that would otherwise not have access to commercial sources of finance. It enables them to build their capacity and bid for public service delivery contracts. Income from these contracts is then used to repay the investment. Both programmes have made some impact.ChangeUp has led to better partnerships between local support providers, which in turn has had an impact on the capacity of frontline organisations. Futurebuilders has also had a positive impact, although it did not focus clearly enough on its objectives during its first three years. As a result of investments made, the Cabinet Office will have a substantial asset on its balance sheet well beyond the current management contract. The February 2009 National Audit Office report on this topic ("HC 132", ISBN 9780102954579) is available to buy separately, please see below. |