Improving Working And Financial Arrangements With Third Sector

18th February 2010

Resources Committee Report -17 February 2010
Highland Councillors have welcomed a new agreement with third sector organisations in Highland - voluntary, charity, community organisations and social enterprises - which aims to strengthen working relationships.

The "compact", which comes into effect on 1 April, is the result of extensive consultation between the Council, NHS Highland, Highlands and Islands Enterprise and the third sector. Around 175 third sector organisations attended events across the Highland area.

A compact is a written agreement which defines and manages the relationship between the third sector and one or more public sector bodies. It sets out shared principles, values and commitments and is designed to state what each partner can expect from each other. It can be seen as a code of conduct.

The compact does not commit funding to the sector however it defines how public sector bodies will communicate funding issues to the sector.

Alongside the introduction of the compact, Councillors have also agreed a series of measures to improve the financial relationship with third sector organisations. These arrangements are to support the sustainability of the sector. The Council is also making a commitment to provide at least three months notice of any change in funding for the sector in line with the communication commitment in the Compact. It is estimated that the Council contributes £26.8 million each year to third sector organisations via more than 600 awards.

Councillor Carolyn Wilson, Chairman of the Council's Resources Committee, said: "The third sector has a hugely important role to play in delivering public services. This is evidenced by the fact that we know we have more than 1,200 charities, the third highest number of all local authorities in Scotland. At an individual level, 29% of the adult population in the area volunteer in some capacity.

"The Compact will strengthen that the Council and its partners work with the third sector and build stronger working relationships for the future. We are committed to a relationship based on trust and no surprises. Whilst there are difficult financial times ahead, we will make sure we work together and discuss any changes in funding in enough time for those changes to be managed properly."