Abstract
As a major funder of the Third Sector, recent cuts in UK Government spending may require Third Sector Organisations (TSOs) to turn to other sources of funding, such as trading activities and public sector contracts. It has been argued that such changes can lead to economic objectives overwhelming social ones. This study utilises data from the 2008 National Survey of Third Sector Organisations to examine the relationship between the use of these alternative funding sources and organisations’ perceived success in achieving their primary objectives. As predicted by theory, a negative relationship between income from trading activities and achievement of objectives is found. Interestingly public sector contracts do not show a significant link with achievement of objectives. Social enterprise should therefore not be seen as an unqualified panacea for difficulties in social welfare provision in the UK, but public sector contracts need not necessarily lead to a loss of those elements that make the Third Sector provision attractive.
Résumé
Les réductions de dépenses du gouvernement britannique, l’un des principaux financeurs du Tiers-Secteur, pourrait contraindre les Organisations du Tiers-Secteur (OTS) à se tourner vers de nouvelles sources de financement, telles que les activités commerciales et les contrats dans le secteur public. On a avancé que de tels changements pourraient mener à ce que les objectifs économiques de ces organisations prennent le pas sur leurs objectifs sociaux. Cette étude utilise les données de l’Enquête Nationale sur les Organisations du Tiers-Secteur (ENOTS) de 2008 pour examiner le lien entre l’utilisation de ces sources de financement alternatives et le succès que ces organisations semblent rencontrer dans l’atteinte de leurs objectifs originels. Comme le prédit la théorie, on découvre un lien négatif entre les revenus provenant des activités commerciales et l’atteinte des objectifs. Il est intéressant de noter que les contrats dans le secteur public ne semblent pas avoir de lien significatif avec l’atteinte de ces objectifs. L’entreprise à but social ne doit donc pas être vue comme un remède absolu aux difficultés de la prestation de l’aide sociale au Royaume-Uni, mais les contrats dans le secteur public ne mènent pas nécessairement à la perte de ces éléments qui font l’attrait du Tiers-Secteur en tant que prestataire d’aide sociale.
Zusammenfassung
Die britische Regierung ist ein wichtiger Geldgeber des Dritten Sektors; doch ihre kürzlichen Sparmaßnahmen könnten zur Folge haben, dass die Organisationen dieses Sektors andere Geldquellen auffindig machen müssen, beispielweise im Rahmen von Handelstätigkeiten und durch den Abschluss von Verträgen im öffentlichen Bereich. Es wurde in der Vergangenheit behauptet, dass durch derartige Änderungen die wirtschaftlichen Zielsetzungen den gesellschaftlichen Zielen vorangestellt werden könnten. Die vorliegende Studie stützt sich auf Daten aus einer im Jahr 2008 durchgeführten landesweiten Befragung von Organisationen des Dritten Sektors [2008 National Survey of Third Sector Organisations (NSTSO)], um die Beziehung zwischen der Nutzung dieser alternativen Finanzierungsquellen und dem von den Organisationen wahrgenommenen Erfolg bei der Erreichung ihrer ursprünglichen Ziele zu untersuchen. Wie bereits theoretisch angenommen, zeigt das Ergebnis eine negative Beziehung zwischen den Einnahmen aus Handelstätigkeiten und der Erreichung dieser Ziele. Interessanterweise zeigen die Vertragsschließungen im öffentlichen Bereich keine bedeutsame Verbindung zur Erreichung der Ziele. Man sollte Sozialunternehmen daher nicht als ein ungeeignetes Patentrezept für die Probleme bei der Bereitstellung von Sozialleistungen in Großbritannien betrachten; doch führen Verträge im öffentlichen Bereich nicht zwangsweise zu einem Verlust derjenigen Elemente, die eine Bereitstellung durch den Dritten Sektor so attraktiv machen.
Resumen
Como financiador de importancia del Sector Terciario, los recientes recortes en el gasto del gobierno del Reino Unido pueden requerir que las Organizaciones del Sector Terciario (TSO, del inglés Third Sector Organisations) se vuelvan a otras fuentes de financiación, tales como las actividades comerciales y los contratos del sector público. Se ha argumentado que dichos cambios pueden llevar a que los objetivos económicos arrollen los objetivos sociales. El presente estudio utiliza datos de la Encuesta Nacional de 2008 de las Organizaciones del Sector Terciario (NSTSO) para examinar la relación entre el uso de estas fuentes de financiación alternativas y el éxito percibido de las organizaciones en la consecución de sus objetivos fundamentales. Como predice la teoría, se encontró una relación negativa entre los ingresos de actividades comerciales y la consecución de los objetivos. Resulta interesante que los contratos del sector público no muestren un vínculo significativo con la consecución de los objetivos. Por consiguiente, la empresa social no debe verse como una panacea incondicional para las dificultades en la provisión de bienestar social en el Reino Unido, pero no es necesario que los contratos del sector público lleven necesariamente a una pérdida de aquellos elementos que hacen atractiva la provisión del Sector Terciario.
摘要
让您的眼睛离开目标:英国第三产业的收入资源与实现目标的满意度之间的关系 英国政府是第三产业的主要基金来源,近期政府花费的削减可能要求第三产业组织(TSOs)投向其他的基金来源,例如交易活动和公共部门项目合同。有人认为这样的变化会导致经济目标高于社会目标。根据2008年第三产业组织(NSTSO)全国调查的数据,本研究调查了这些其他的基金来源的用途与组织实现首要目标的成功感之间的关系。如理论所预测,交易活动收入与实现目标之间的关系是消极的。有趣的是,公共部门项目合同与目标实现的联系并不显著。因此,不应将社会企业视为解决英国社会福利救济困难失效的妙药,但公共部门项目合同不一定会导致增强第三产业救济吸引力元素的损失。
ملخص
كممول رئيسي للقطاع الثالث، الإنخفاض الحالي في الإنفاق الحكومي في المملكة المتحدة قد يتطلب لجوء منظمات القطاع الثالث (TSOs) إلى مصادر أخرى للتمويل، مثل الأنشطة التجارية وعقود القطاع العام. قد قيل أن هذه التغييرات يمكن أن تؤدي إلى الأهداف الإقتصادية الساحقة منها الإجتماعية. هذه الدراسة تستخدم بيانات من إستطلاع رأي وطني لعام 2008 لمنظمات القطاع الثالث (NSTSO) لدراسة العلاقة بين إستخدام هذه المصادر البديلة للتمويل ونجاح المنظمات ينظر إليها في تحقيق أهدافها الأولية. كما تم التوقع بالنظرية، وجدت علاقة سلبية بين الدخل من الأنشطة التجارية وتحقيق الأهداف. من المثير للإهتمام أن عقود القطاع العام لا تظهر وجود صلة كبيرة مع تحقيق الأهداف. ينبغي لذلك ألا ينظر للمشاريع الاجتماعية على أنها الدواء الشافي غير المشروط لصعوبات في توفير الرعاية الاجتماعية في المملكة المتحدة، لكن عقود القطاع العام ليس بالضرورة تؤدي إلى فقدان تلك العناصر التي تجعل توفير القطاع الثالث جذاب.
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Acknowledgments
The data used in this study was originally collected by Ipsos MORI, Social Research Institute, and GuideStar UK, funded by the Cabinet Office, Office of the Third Sector. It is stored and distributed at the UK Data Archive at the University of Essex, Colchester, under Crown Copyright by permission of the Controller of HMSO and the Queen’s Printer for Scotland. Any errors or omissions in the analysis or its interpretation are the entirely the responsibility of the authors.
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Appendices
Appendix 1: Non-charity Legal Forms
CLGs and CICs are private-limited companies and can borrow against their assets. CLGs can produce a surplus to fund activities, but this cannot be distributed. The CLG form protects trustees of organisations from liability where they are likely to enter into contracts relating to employment or property (BIS 2011a). CIC is the legal form developed for social enterprises. CICs do not have to be established for charitable purposes, but any lawful purpose as long as they are run clearly for the benefit of a community. They may even pay dividends in some cases, but their primary objective should not be to create wealth for owners and assets cannot be transferred (BIS 2011a; Regulator of Community Interest Companies 2010). Industrial and Provident Societies are run by and for the mutual benefit of their members rather than outside investors. Surpluses can be distributed to members, but are usual reinvested in the society (BIS 2011a, b).
Appendix 2: Identification of Main Groups of Users Served by Organisations
In order to control the difficulties that might be faced when serving particular groups of the population, the main groups of users were identified. The organisations were asked to indicate up to three groups of users of their goods and services. There was a danger of correlation between user groups where separate groups suffering from similar issues were served by the same organisation. In order to overcome this problem, principal components analysis was used to identify broader groups of clients. A maximum likelihood approach was adopted using the varimax orthogonal rotation to ensure that the components obtained were not correlated and ensuring easier interpretation of the individual components. The factor scores were estimated using the Anderson-Rubin approach that is suggested where non-correlated factor scores are required (Tabachnick and Fidell 2007). Four components (the general public, victims of crime or drug abuse, those suffering from mental or physical disability, members of minority groups in society) were identified using Kaiser’s (1960) criterion of eigenvalues of >1. Cattell’s (1966) approach of examining the scree plot’s inflexion point confirms this in part, although a second inflexion point is found for seven factors. Bartlett’s sphericity test rejects the null of the covariance matrix taking the form of an identity matrix, indicating that there is some correlation between the separate user groups. The Kaiser–Meyer–Olkin (KMO) measure of sampling adequacy indicating the extent that the patterns of correlation are relatively compact, so distinct separate factors are likely to be estimated exceeds the bare minimum of 0.5 (Kaiser 1974) with a value of 0.59, but this is only in the range described as mediocre by Hutcheson and Sofroniou (1999).
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Thompson, P., Williams, R. Taking Your Eyes Off the Objective: The Relationship Between Income Sources and Satisfaction with Achieving Objectives in the UK Third Sector. Voluntas 25, 109–137 (2014). https://doi.org/10.1007/s11266-012-9326-5
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DOI: https://doi.org/10.1007/s11266-012-9326-5