Community groups and small voluntary organisations are being held back from playing their full part in society by confusion and contradictions over their support arrangements and the way they are governed.
An evaluation of the Governance Project for the Joseph Rowntree Foundation acknowledges that there is no universally accepted definition of ‘governance’. But it warns that Government is adding to the confusion by emphasising different aspects of governance in different policies.
Researchers at the London School of Economics assessed the one-year Governance Project that worked with 20 community groups and organisations in four London boroughs to strengthen their governance.
The evaluation found unsuitable legal frameworks and poor, inappropriate constitutions were a root cause of many of the organisational problems that they faced.
The Charity Commission, funders and local development agencies had tended to assume that community groups were new and intent on expanding, following a conventional step-by-step approach. In reality groups often emerged from existing informal arrangements, embraced a wide range of organisational structures, and did not necessarily grow or evolve steadily.
Community groups and small voluntary organisations needed to establish trust with a development practitioner (such as a small groups worker), and responded best to a tailored, needs-led approach to governance development.
Sarabajaya Kumar, co-author of the research, said: “Addressing governance issues is critical to organisational effectiveness, ensuring accountability to their stakeholders. However, it is clear from this project that the needs of community groups and small voluntary organisations are not currently being appropriately met.”
The report recommends that funders should invest in helping community groups and small voluntary organisations to develop effective governance. Funders are urged to make modest, easy-to-obtain grants available for training and other support needed to strengthen governance, alongside their main programme funding. The Charity Commission is also encouraged to consider introducing a new, ‘light touch’ governance regime for community and small voluntary groups, with fewer strictures.
Kevin Nunan, co-author of the report who led the Governance Project, said: “A light governance structure needs to be minimalist and enabling rather than stifling. It should balance encouraging small groups and organisations to achieve their potential with a proportionate need for accountability and formal structures.”
