Compact

<<The Voluntary Sector Compact (summary)

Compact between Newcastle's voluntary and community sector and Newcastle City Council

Agreed March 2001
Refreshed August 2008

What is the Compact
Shared vision
Shared principles
The City Council's undertakings
Voluntary and community sector undertakings
Glossary of Terms

What is the Compact?

The Compact is an agreement between Newcastle City Council (the Council) and the voluntary and community sector (VCS) in the city.

The Compact describes the relationship between the two. It is not a legally binding document. The authority of the Compact comes from the fact that the Council and the VCS have made an agreement to work together in the way the Compact describes.

Newcastle City Council and Newcastle Council for Voluntary Service (NCVS) have worked together to develop the Compact. It is based on the Compact between the national government and VCS groups that was agreed in 1998.

(For further details of the national Compact see www.thecompact.org.uk)

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Shared vision

VCS activity is central to developing a democratic, socially inclusive city. This Compact is an expression of the commitment of the Council and VCS organisations to work together for the benefit of communities in Newcastle.

VCS organisations, as independent and non-profit-making, bring particular value to Newcastle and fulfil a role that is distinct from statutory agencies and the private sector. This role includes:

Giving people the chance to contribute to public life and the development of communities by providing opportunities for voluntary action. In doing so they engage the skills, interests, beliefs and values of individual people and groups.
Making a major contribution to Newcastle’s social, cultural, economic and political life by:

providing important services
helping people who use statutory services get involved in their design
acting as advocates

Through their ongoing activities, promoting equality and diversity, and challenging social exclusion.

In doing so, voluntary and community groups also promote equality and diversity, and challenge social exclusion.

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Shared principles

1. The shared principles which support this compact are set out below.

1.1 Voluntary action is an essential part of a democratic society and hence of life in Newcastle.

1.2 An independent and diverse VCS is central to the wellbeing of society and hence the prosperity of Newcastle.

1.3 In developing and delivering public policy and services, the Council and VCS organisations have distinct but complementary roles. The main difference between the roles is that the Council is usually driven by statutory duties and government policies, while VCS organisations are driven by their charitable aims.

1.4 There is added value in working in partnership with others towards common aims. Meaningful consultation between the Council and VCS organisations:

builds relationships
improves policy development
improves the design and delivery of services and programmes

This Compact is underpinned by a Consultation Code of Practice refreshed in November 2007.

1.5 The Council and VCS organisations have different forms of accountability and are answerable to a different, though often overlapping, range of stakeholders. Both the Council and VCS organisations need to be:

impartial
accountable
open
transparent
honest
able to take a lead role

1.6 VCS organisations are entitled to campaign within the law to promote their aims.

1.7 Among other things, the Council plays a significant role as a funder of many VCS organisations. Funding is an important part of the relationship between the Council and the VCS. This Compact is underpinned by a Funding Code of Practice. The latest version of this code covers grants and contracts and was agreed in March 2008.

1.8 Both the Council and VCS organisations recognise the importance of promoting equal opportunities, regardless of race, age, disability, gender, sexuality or religion.

1.9 Sharing of good practice and common standards is of benefit to the Council and the VCS. This is reflected in the supporting Compact codes of practice and 'The Compact: How it works and how to deal with disagreements'.

1.10 The Council and the VCS agree that the role of advocacy for users of statutory services is best carried out by independent agencies.

1.11 Volunteers bring considerable added value to Newcastle. This Compact is underpinned by a Volunteering Code of Practice agreed in May 2004.

1.12 This Compact is underpinned by 'The Compact: How it works and how to deal with disagreements', 2008.

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Newcastle City Council's undertakings

2. The undertakings by the City Council are set out below.

Value
2.1 The City Council recognises the value of the VCS to Newcastle’s wellbeing, and understands that this value is not limited to those organisations that it funds (whether through grants or by contracts).

Independence
2.2 The Council recognises and supports the independence of the VCS. This includes the right of voluntary and community groups to:

campaign within the law
comment on local and central government policy
decide upon and manage their own affairs.

This is the case regardless of whether or not the Council funds the VCS organisation (whether through grants or by contracts).

Funding
2.3 The Council will take account of the need for greater equality, targeting, consistency and transparency in the way that funding is distributed to the VCS. The Council will pay particular attention to strategic funding, making sure that VCS organisations can continue to respond to government policies, Council and other public sector schemes and local needs.

2.4 The Council will work with the VCS organisations to develop and maintain a code of good funding practice (- the most recent version was agreed in March 2008) within its duties under ‘Best Value’. This code of practice promotes:

the distribution of resources in line with clear and consistent criteria, including value for money
funding policies which take account of VCS organisations' aims and their need to work efficiently and effectively
common, transparent arrangements for

agreeing aims
setting targets
measuring performance
organising prompt payment of funding
reviewing financial support
consulting on changes to funding
informing about future funding as early as possible (normally before the end of the current grant period)

the value of long-term, multi-year funding, where this is appropriate, to help with long term planning, stability and sustainability

2.5 The Council recognises the importance of infrastructure to the VCS and to volunteering. The Council will support the development of this infrastructure, where appropriate.

2.6 The Council will take account of the role of the VCS when responding to government initiatives, and when producing strategies that could affect VCS funding.

Policy development and consultation
2.7 The Council will assess new policies and procedures, particularly at the development stage, in order to identify as far as possible the implications for VCS organisations.

2.8 Depending on urgency, sensitivity and confidentiality, the Council will consult with the VCS on issues that are likely to affect it, particularly where new roles and responsibilities for VCS organisations are being proposed. The Council will carry out any consultation well beforehand to allow reasonable time to respond. This will take into account the need of VCS organisations to discuss issues with their users, beneficiaries and stakeholders. Consultation should have real room for negotiation, and not simply be a request to agree to something the Council has already decided. (These issues are set out in detail in the Consultation Code of Practice, 2007).

2.9 The Council will take account of the particular needs, interests and contributions of those VCS organisations that represent women, minority groups and other people who face discrimination and social exclusion.

2.10 The Council will keep confidential any information provided by the VCS, within the boundaries of the law and the Council’s public duties, when it has been given access to the information on that understanding.

2.11 The Council will work with the VCS to develop and maintain a code of practice covering how it will carry out consultation, policy assessment and putting policies into practice. The most recent version of the Consultation code was agreed in November 2007.

Better Government
2.12 The City Council will promote:

effective working relationships
a consistent approach
good working practices

between the Council and the VCS, particularly about issues that involve more than one Council department

2.13 The Council will follow the principles of open government and good regulation . These principles aim to make sure that the Council makes its decisions and findings public whenever possible.

2.14 The Council will review how the Compact is working together with the VCS through a joint Compact Review Group. This group will meet at least once every calendar year. (Details of the group are set out in 'The Compact: How it works and how to deal with disagreements' revised in 2008).

2.15 The Council will encourage other public organisations to adopt this Compact or develop their own vision.

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Voluntary and community sector undertakings

3. The undertakings by the VCS are set out below.

Funding and accountability
3.1 VCS organisations will maintain high standards of governance, behaviour, honesty and integrity. They will meet their reporting and accountability responsibilities to those people who fund and use their services. Where applicable, they will follow the accounting rules for charities.

3.2 VCS organisations will respect and follow the law and, in the case of charities, follow guidance from the Charity Commission. This includes advice about political activities and campaigning.

3.3 VCS organisations accept that the Council can give or refuse grants. VCS organisations further accept that the Council can place appropriate conditions on the use of grants, in line with the conditions outlined in paragraphs 2.3-2.6.

3.4 VCS organisations will develop quality standards that are appropriate to the organisation concerned, and in line with the relevant principles of good practice.

Policy development and consultation
3.5 VCS organisations will make sure that people who use their services, their volunteers, members and supporters are informed and consulted, where appropriate, about activities and policy positions when presenting a case to the Council and when responding to the Council in the course of such representations.

3.6 VCS organisations will keep confidential information that the Council gives them, when they have access to it on that understanding.

Good practice
3.7 VCS organisations will promote effective working relationships with the Council, other agencies, and across the VCS.

3.8 VCS organisations will involve people who use their services, wherever possible, in developing and managing their activities and services.

3.9 VCS organisations will put in place policies for promoting good working practices and equal opportunities in:

activities
employment
involvement of volunteers
service provision

3.10 The VCS will review how the Compact is working together with the Council through a joint Compact Review Group. This group will meet at least once every calendar year.

Please contact us for more information about the Compact.

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Contacts

For more information about the Compact and the codes of practice please contact

Newcastle Council for Voluntary Service
MEA House
Ellison Place
Newcastle upon Tyne
NE1 8XS

Phone: 0191 232 7445
E-mail: info@cvsnewcastle.org.uk

Corporate Policy Team
Chief Executive's Office
Newcastle City Council
Civic Centre
Newcastle upon Tyne
NE99 2BN

Phone: 0191 211 5802
E-mail: david.large@newcastle.gov.uk

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Glossary of Terms

Infrastructure
VCS infrastructure means independent organisations within the VCS that are set up to:

provide other VCS organisations with advice and support
bring the wide variety of voluntary and community groups together
represent their interests in dealings within the VCS and with other sectors

Social exclusion
Social exclusion refers to the problems faced by people who are not able to get services or be involved in their communities in the same ways as other people. This is because they are discriminated against or because they face particular problems like long-term unemployment.

Stakeholders
Stakeholders are people or groups who have an interest in what an organisation does. They can be:

people who use the organisation's services
those who fund its work
other organisations it has to work with, or
other organisations with an interest in its work

Strategic funding
Strategic funding takes an overview of the kind of activities and organisations that should be funded to meet particular long-term aims.

Voluntary and community sector (VCS)
VCS is a collective name for all the groups and organisations which:

do not exist because of a statutory reason (unlike local authorities, the police, health authorities etc)
do not exist to make private profit (unlike businesses)

These groups may be run entirely by volunteers, or they may employ staff. The management committee will be made up of volunteers.

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