Financially independent charities impress MPs

Social Enterprise

5 February 2008

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Charities with financial independence are more likely to impress MPs, according to research released today.

Leading not-for-profit sector think tank and research consultancy nfpSynergy's latest Charity Parliamentary Monitor surveyed a representative sample of 180 MPs.

They were asked which charities have directly impressed them most in the last six months in order to explore how this impact relates to a charity's voluntary income.

The results show charities whose voluntary funding has given them significant financial independence from governmental, statutory sources are far more likely to have the confidence to engage with, and impress, MPs.

Only five of the top 30 UK charities that MPs claim most directly impressed them in the last six months have less than the 38 per cent sector-wide average percentage of voluntary income, as proportion of total income.

All but nine - 70 per cent - have at least 50 per cent voluntary income and the top 30 average is 61 er cent.

Even the charities with below-average proportional voluntary income, such as Mencap, Barnardos and RNID, still have significant absolute amounts of voluntary income, due to their large size.

Joe Saxton, founder of nfpSynergy, said: ‘These findings show that, in the current political and regulatory environment, and despite recent Prime Ministerial compact-related assurances, only charities with significant proportions of non-statutory income feel independent and confident enough to engage with, and thereby impress, MPs. ‘Charities should know that financial independence is the precursor to making you more influential and ultimately effective, not less.

‘An independent, thriving and effectual voluntary sector appears to require independent income. And MPs seem to know, and even value, this as much as any charity.'

Charities in the top 30 include the Alzheimer's Society, Shelter, Mind, Diabetes UK and the Royal British Legion, as well as those previously mentioned. Some subscribers to nfpSynergy's Charity Parliamentary Monitor, including the top three of the top 30, choose to remain anonymous.

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