Scottish Government

SCOTTISH EXECUTIVE RESPONSE

TO THE

SOCIAL JUSTICE COMMITTEE INQUIRY INTO

THE VOLUNTARY SECTOR

1. Introduction

1.1 The Scottish Executive welcomes the Social Justice Committee's Inquiry into the Voluntary Sector and recognises the importance of the voluntary sector in Scottish society and in the economy. We are fully committed to ensuring the full and active participation of the sector as a key partner, recognising that the voluntary sector and community groups are in close touch with many parts of Scottish society and are well placed to identify and respond to changing needs. We welcome their involvement in a range of activities including policy development, service delivery and the development of community capacity and we are committed to modernising the legal, financial and infrastructure in which the sector operates.

1.2 We have already carried out, and consulted on, a review of our own direct funding of the voluntary sector and we are now moving, in partnership with the voluntary sector and other funders, to undertake a more strategic review. This will look at how the sector receives support and how that support can be used consolidate and develop the contribution to public life that the sector makes in Scotland.

2. Response to Recommendations

2.1 The Scottish Executive is committed to promoting and mainstreaming voluntary sector issues across its Departments, Agencies and NDPBs. This commitment is reinforced and supported by a number of mechanisms and structures aimed at improving policy making and implementation and strengthening the Scottish Executive/voluntary sector relationship through developing effective and participative partnership working. The mechanisms and structures include:

Scottish Compact: The Executive's commitment to working with the voluntary sector is embodied in the Scottish Compact, which applies to all Scottish Executive Departments, Agencies and NDPBs. The Compact sets out the principles that underpin the relationship between government and the voluntary sector, identifies our shared values and sets out the commitments that both parties have made. The Compact is supported by good practice guides on funding, consultation, policy proofing and partnership working.

A Compact Review Group, comprised of Executive and voluntary sector officials, monitors implementation on an annual basis and reports to Scottish Ministers. The last report on the Compact was published and debated in the Scottish Parliament on 26 September 2001. The Review Group is also currently developing an agenda to update the Compact and its Good Practice Guides.

Scottish Executive/Voluntary Sector Forum: The Forum, which is jointly chaired by the Minister for Social Justice and the Convenor of the Scottish Council for Voluntary Organisations (SCVO), plays a crucial role in improving dialogue and understanding between the Executive and the sector. It meets twice a year and brings together the Minister, Executive officials and representatives from SCVO and Volunteer Development Scotland (VDS).

Voluntary Issues Unit: Based within the Scottish Executive Development Department, the Unit's role is to encourage, support and develop the relationship between the Executive and the voluntary sector. It does this by supporting mainstreaming of voluntary sector issues across the Scottish Executive and through working in partnership with the voluntary sector and other key bodies. The Unit also manages the Executive's budget for the support of the voluntary sector's infrastructure and for the Active Communities Initiative.

Voluntary Issues Management Board: This comprises senior civil servants from across the Scottish Executive, and the Convenors of the SCVO and VDS. The Board meets three times a year and is responsible for overseeing the work of the Unit. It also plays an important role in developing the Scottish Executive's links with the voluntary sector across policy areas.

Training: The Scottish Executive has been running a series of seminars on the voluntary sector for staff across its Departments. These have involved presentations from senior staff in Social Justice Group and SCVO, and have usually been hosted by the relevant Departmental Minister. Over the next 18 months, these seminars will be extended to Agencies and NDPBs. As well as providing information on Scottish Executive policy and good practice, the seminars also stress that the responsibility for effective and best practice lies with each and every member of staff.

2.2 There are already a range of examples where voluntary sector issues are being successfully dealt with across Scottish Executive Departments, Agencies and NDPBs. Examples include:

• The provision of a broad range of funding schemes, both direct and indirect. The Executive's own schemes are publicised in our leaflet A Guide for the Voluntary Sector to Scottish Executive Grants, which is updated annually;
• The development of volunteering policies by NHS Boards across Scotland;
• The sponsorship of Volunteer Development Scotland to manage the free SCRO checks for volunteers in the voluntary sector.

2.3 The Scottish Executive has undertaken a review of its own direct funding of the voluntary sector. Following on from this, we shall seek to provide ongoing support, generally in 3-year tranches, where the work being undertaken continues to contribute to meeting Executive priorities and objectives. Many other funders already follow this practice. With regard to local authorities, the Executive now indicates 3-year funding, which should, in turn, enable them to make 3-year commitments in their funding of voluntary organisations.

2.4 With regard to the assessment of the level of service that can be provided in return for the funding allocated, we shall be moving to a more standardised application process that will look at how the work being proposed meets Scottish Executive priorities. We shall also continue to expect appropriate evaluation procedures to be put in place.

2.5 The Executive takes the view that funders of the voluntary sector should recognise the transaction costs to voluntary organisations of putting together suitable funding packages and should therefore seek to ensure that their own practices do not add to these costs unnecessarily. The grant schemes operated by the Scottish Executive generally operate on the basis of providing grant for all or part of the financial year of 1 April to 31 March. However, there is no rigidity in this and grants may begin and end at any point within the financial year.

2.6 With regard to management costs, we would expect voluntary organisations fully to account for the costs to them of undertaking work that contributes to the meeting of Scottish Executive priorities and for which they are receiving financial support. This point is already covered in the Scottish Compact Good Practice Guide on Funding.

2.7 As stated, we recognise the transaction costs to voluntary organisations in obtaining funding. As a result of our review of our direct funding of the voluntary sector, we shall be introducing a single core application form for all Scottish Executive funding for the voluntary sector. Supplementary information may be requested depending on the nature and level of the funding sought. We shall also be introducing standard packages of funding conditions, appropriate to the differing levels of funding, and these will apply to all awards made by the Executive. And we shall be introducing a standardised system for claiming the resources allocated. We intend to discuss with the sector the formats in which the funding process may be delivered, and will seek to move to electronic delivery for those organisations that want it.

2.8 We shall be seeking to ensure that the monitoring systems we use are relevant, and not overly complex or burdensome to the organisations involved. The systems will be flexible, taking account of the size of the voluntary organisation and the level of funding being awarded, but still recognising the need to account for public sector funding. Monitoring will focus on agreed key performance indicators and, wherever possible, will make use of monitoring systems already in place within the voluntary organisation e.g. reports to its Board/Management Committee, set format for annual reports etc. Audited accounts will continue to be required.

2.9 The Scottish Compact Good Practice Guide on Funding commits us to agreeing clear objectives and performance indicators and to establishing specific outputs for grant-funded activity at the time when the offer of grant is being made. We expect grant recipients to make appropriate arrangements to monitor and evaluate the quality of their grant-funded work and to report at agreed intervals. Where we have offered 3-year funding, we review performance during the second year to ascertain if grant should be renewed and to provide feedback to the organisation concerned. The Good Practice Guide also recommends that an independent external review of major recurring grants of £100,000 or more should be carried out at 6-yearly intervals with the active involvement of the organisation concerned.

2.10 The Scottish Executive makes funding available to support activities and services carried out by voluntary and volunteering organisations that demonstrably contribute to meeting the Executive's priorities and objectives. As a result of our recent review of our direct funding we shall be viewing the commitment of funds to the voluntary sector as an investment decision rather than as part of a grants-based dependency approach. We shall seek to support and invest in the voluntary and volunteering sectors' national infrastructure organisations and networks and we shall seek to support relevant umbrella/intermediary bodies where these contribute to the capacity of the sector to work with the Executive in attaining agreed objectives and do not duplicate the roles of existing organisations, networks or bodies.

2.11 We value experience and a proven track record. However, there is always scope to improve the way we do things and to develop new approaches. We shall support innovative projects, local or national, where the Executive has a particular interest in taking forward an experimental approach and, where an innovative approach has proven to be successful, we shall seek to develop it nationally.

2.12 The Scottish Executive's experience with its own Scottish Compact has been very positive and we recognise the value of such arrangements. We know that a number of local authorities have agreed compacts with the voluntary sector operating in their areas and we welcome this. We also welcome the development of volunteering policies by many local authorities and NHS Boards. We believe that the community planning process will enhance the relationships between local authorities, other public agencies operating at the local level and the voluntary sector. While welcoming the development of local compacts, we have no plans to try to prescribe their format or content. However, we shall be discussing with the sector and with CoSLA any need for or benefit from the Executive issuing guidance.

2.13 In its own funding of the voluntary sector, the Scottish Executive recognises that the sector, like others, requires to invest in training both of its staff and of its volunteers. Examples of the support that is given includes:

Councils for Voluntary Service: grant for training and capacity building has been made available to CVS Scotland to strengthen the capacity of CVS to support community involvement, inclusion and participation by strengthening the network of CVS in Scotland and by providing opportunities, resources and support for CVS.

Training grants under section 9 of the Social Work (Scotland) Act 1968: designed to promote practice competence in key areas of social work by enabling national voluntary organisations to provide or secure training for their paid staff and voluntary workers that would not otherwise be available to them.

Voluntary Sector National Training Organisation: the Voluntary Sector National Training Organisation's (VSNTO) vision is of an effective and highly skilled voluntary sector, capable of making a strong contribution towards a fair and open society. SCVO (which receives core funding from the Executive), in partnership with the National Council for Voluntary Organisations and Wales Council for Voluntary Action, implement the work of the VSNTO.

2.14 The Scottish Executive is implementing the Active Communities Initiative, a 5-10 year strategy that aims to change attitudes to volunteering and community action and to increase the numbers and broaden the range of people taking part. The Initiative aims to break down barriers to involvement.

2.15 As part of the Initiative, in 2001-02 we directed grants worth a total of £1.65 million to volunteering projects undertaken by or benefiting targeted groups. For example, we are funding projects aimed at older people, housebound people, people with learning difficulties, young people in rural areas, people in black and minority ethnic communities and disabled people and volunteers with additional support needs. In 2002-03, funding for the Initiative will rise to around £2 million.

2.16 But we recognise that funding of specific projects is only one aspect of implementing the strategy. The development of good practice in recruiting, managing and supporting volunteers is also crucial. To assist this the Executive provides funding to Volunteer Development Scotland for its Active Communities Development Unit, which is tasked with developing and advising on good practice. That good practice includes meeting the out of pocket expenses of volunteers. We shall also be developing good practice guidance on supporting those who volunteer within a public sector context.

2.17 A three-year evaluation of the Active Communities Initiative is underway. Amongst other things, the evaluation will examine: whether the Initiative is impacting on people at the margins of society; how to involve them more in volunteering and community action; and how to help close the opportunity gap. The evaluation is being overseen by the Active Communities Forum, chaired by Mrs Maureen O'Neill, the Director of Age Concern Scotland.

2.18 We are also developing the national network of volunteer centres. Volunteer centres are one-stop shops where people interested in volunteering and community action can go to find out more about what they can do. Volunteer Centres promote volunteering at the local level and their mission is to involve more people, more effectively in volunteering to help make Scotland a better place to live. The Centres also provide a service to the many voluntary and public sector organisations that make use of volunteers' services.

2.19 The Scottish Executive recognises the importance of training and development to increasing the mutual understanding between the public and voluntary sectors. As already indicated, the Executive has been running a series of seminars on the voluntary sector, and involving voluntary sector personnel, for staff across its Departments. In addition, we have a strong interchange programme that encourages secondments between the Executive and the voluntary sector. Secondments have included Executive staff going to work in organisations such SCVO, Scottish Business in the Community, Young Scot and the Prince's Trust. Inward secondments have included staff from SCVO, Volunteer Development Scotland, Edinburgh Volunteer Exchange, the Scottish Federation of Housing Associations and Women's Aid.

2.20 The Scottish Executive recognises the importance to the voluntary sector of being able to access funding. A range of support mechanisms is in place to help the sector in this regard. These include:

Councils for Voluntary Service: CVS offer advice and assistance on accessing funding to voluntary organisations operating in their area.

SCVO: SCVO, which receives core funding from the Executive, maintains a database of funding sources that are available to the voluntary sector.

Kickstart: the Kickstart programme aims to develop the skills, knowledge and capacity of local voluntary and community groups within deprived areas in relation to a range of funding and project related issues.

Unemployed Voluntary Action Fund: UVAF administers several grant schemes on behalf of the Scottish Executive. They undertake road shows across the country to provide voluntary organisations with information on the funding available. They follow this up with advice on applying and feedback for unsuccessful applicants.

European funding: in terms of facilitating access to European funding, the programmes are administered by independent Programme Management Executives. Their remit includes promoting knowledge about the resources available and supporting those organisations that have an interest in accessing them.

We shall be keeping these under review as we move to the development of our strategic funding review.

2.21 We are committed to increasing the numbers of people becoming involved in their communities. This response has outlined some of the steps being taken to assist individuals and groups that might otherwise be excluded from involvement in the voluntary and volunteering sectors. All of the work that we currently support is subject to performance monitoring and evaluation. Future support will depend on the impact that the work is having, its continuing relevance to Executive priorities, and the level of resources available to the Executive to support work in that area.

2.22 The Scottish Executive is committed to following best practice in undertaking consultation. The Scottish Compact Good Practice Guides already contain guidance on consulting the voluntary sector. For example, it recognises that voluntary organisations require sufficient time to consult their members and we are committed to allowing at least 3 months for a response to be made. We are developing advice and guidance on our consultation practices generally and not just with the voluntary sector.

2.23 We recognise that the traditional method of issuing a consultation paper and requesting written responses is not always the only or best way of consulting. Recently, we have supplemented this by, for example, commissioning a series of facilitated meetings to help those with an interest in the policy area being consulted on to develop their thinking and prepare their response. This approach was taken in respect of the development of the Active Communities strategy and in our review of support for the black and minority ethnic voluntary sector. We shall strive to continue to develop and implement best practice in the future.

2.24 The Scottish Executive recognises the valuable contribution made by the voluntary sector in rural areas and we support a wide range or organisations and projects.

2.25 Through our support for the national network of Councils for Voluntary Service (CVS) we aim to facilitate the development and representation of the voluntary sector at local level. There are 60 CVS throughout Scotland, in both urban and rural areas. Between them they have a membership of over 4000 voluntary organisations and work with many more. Executive funding for the CVS network is now worth over £2.5 million. We give similar support to the national network of volunteer centres.

2.26 Some of the Scottish Executive's funding for the voluntary sector is targeted specifically at rural areas, for example the Scottish Rural Partnership Fund and Local Rural Partnerships (LRPs). We have also held a funding seminar in Inverness in March and plan to hold more in other rural areas in the near future. Other funders, including European, Community Fund, and Lloyds TSB, have been invited to take part in these seminars. We are also committed to developing an LRP toolkit, which will provide information on funding and good practice.

2.27 With regard to the impact on costs of operating in rural areas, we would expect voluntary organisations to take account of this in their funding applications.

2.28 We recognise the role the voluntary sector has in providing services in rural areas and the importance of partnership working between local agencies and the voluntary sector.

2.29 The Executive will be setting up a Rural Community Gateway website that will connect rural communities with government, with service providers and with each other. Amongst other things, it will provide links to community websites and to information on funding. It is also likely to enable organisations in rural communities to 'self-post' information on the site - this will be good for the sharing of experiences/good practice.

2.30 The Executive has made over £500,000 available to support SCVO in developing their website into a portal for the voluntary sector in Scotland. The Portal will be owned and developed by the voluntary sector and will provide a single gateway to "not for profit" organisations for voluntary organisations, members and supporters and the public. The Portal will allow those who use it to find out what's on in the sector, access advice and information, apply for jobs and volunteering opportunities, obtain information and advice, and catch up on the latest news. It will also provide a facility for on-line lobbying of MSPs. SCVO plan to publicly launch the Portal on 11 June 2002. The Executive has met the Portal subscription costs for the national networks of Councils for Voluntary Service and Volunteer Centres in 2002-03.

2.31 Generally, the Scottish Executive is committed to building more effective working relationships across the voluntary sector. This will benefit all voluntary sector organisations, including those in rural areas.

3. Conclusion

3.1 We believe that this response to the Social Justice Committee's Inquiry into the Voluntary Sector demonstrates the Executive's commitment to:

• working with and investing in the voluntary sector;
• improving funding processes and mechanisms in our direct and indirect funding;
• working with and encouraging other funders to develop better and more consistent practice across the funding range;
• improving consultation practices with the voluntary sector;
• seeking to enable disadvantaged groups and communities to participate fully in volunteering and community involvement;
• recognising the role and needs of the voluntary sector in rural areas; and
• working with the sector to develop its IT capacity to help it meet the needs of people in Scotland.

SCOTTISH EXECUTIVE

May 2002