NGO Education Survey

Financial Management in the Third Sector

This module introduces you to a number of topics and techniques which inform the management of finances in general, and in a third sector organisation. The policy framework, funding environment and reporting requirements for third sector organisations have changed immeasurably in the years since 1997: this module presents an up-to-date picture of what these changes mean in practice for the third sector manager. As well as sector-specific financial management skills, the module provides you with an understanding of general financial management principles. A number of general trends in the third sector environment have had an impact on organisations' financial management, including an increasingly competitive funding environment, moves away from grant funding to contracts with public sector bodies, availability of tailored loan finance, and an increased expectation from funders and boards of trustees that social enterprise activity should be undertaken, thus improving sustainability. The module examines a range of sources of finance for third sector organisations, which include donations, legacies, fundraising, trading income, applying for grants, loan finance for the sector, and the possibility of equity finance (for social enterprises). Basic principles of budgeting, cash flow, and financial reporting are also taught. This will enable you to take financial planning and monitoring, to interpret data, and to present information to internal and external stakeholders. Assessment is a report based on a third sector organisation, reflecting achievement of the learning outcomes for the module. The module will help those already working in the third sector to provide evidence they have the skills for managing an organisation, and those who are interested in developing their career within the sector, or playing a role as a trustee.

Human Resource Management in the Third Sector

At the heart of many third sector organisations is the idea of transforming people's lives for the better. This means in practice that volunteers, trainees and employees often come from disadvantaged backgrounds. Even where this isn’t the primary focus of the organisation, the use of volunteer workers, and the lack of financial resource to attract top talent, means that third sector organisations have to be flexible and creative in the way they recruit, manage and retain their staff. This module examines all aspects of human resource management in relation to the third sector, beginning by examining the overall discipline and ensuring that HR strategy is explained and seen as integrally linked to overall business strategy. You’re introduced to planning approaches for HR, based on organisational need rather than historic precedent. Having explored the principles of good recruitment and managing the performance of individuals and teams, the 'third sector' difference is critically reviewed: are staff at third sector organisations altruistic, in the sense they’re willing to work longer and receive less financial reward, because of the social benefit accruing from the organisation's work? Further elements of HRM specific to the third sector, namely volunteer management and working with disadvantaged groups and individuals, are also covered, and the module also presents legal information that surround the HR function. One of the main focuses for the design of this module has been the further development of relevant employability and professional skills. Third sector managers and other leaders (trustees) will be better equipped to take on senior roles within the sector. The module is assessed by completion of a 3,000 word assignment with a focus on your own organisation. You’re also encouraged to maintain a learning journal to reflect upon their thoughts and learning. The learning journal is discussed in your tutorial sessions.

Marketing for Third Sector Organisations

Third sector organisations differ markedly from private sector businesses in mission, organisation and activity. Firstly, they exist to meet social need, rather than to create profit per se; secondly, they rely heavily on voluntarism (volunteer labour, donated income or other capital); thirdly, they often exist where traditional markets (and state-led approaches) have failed. These three differences still persist, sometimes with additional tension where social enterprise, with its focus on product and customer, is involved. Finally, the situation is complicated further by the existence of a large number of stakeholder groups with potentially contradictory aims and objectives. This module equips third sector managers with an understanding of generalist marketing principles and practice, with additional, specific input on those aspects which are unique to, or important for, the third sector. The early part of the module focuses on definitions of marketing, and its central role in modern business management. We introduce key elements such as segmentation, differentiation, brand and identity, research, and the marketing mix, all illustrated by case studies from the sector, and modified where applicable by third sector specialist theory. The important and sector specific areas of social marketing (influencing behaviour), attracting donors, recruiting volunteers, and proving social impact are also covered, along with the ethics of marketing for organisations working with disadvantaged or disabled people. Finally the module examines how traditional communication channels are being replaced by Web 2.0 and social media, and explores how these can be harnessed specifically by third sector organisations. You will develop a marketing strategy as your assessed assignment for this module, based on your own organisation. The content of this strategy will include aspects from the module including a description of customer groups, organisational identity, and clear objectives. As a result of completing this module, you will be more employable as managers and leaders in the sector due to the skills acquired.

Social Enterprise

An understanding of social enterprise is a vital component in the skill set of the modern third sector manager. This module examines social enterprises as organisations, where trading for a social purpose is a central activity, and social enterprise as an activity, which can be undertaken by charities and voluntary organisations seeking to maximise income. Social enterprise has been defined as an organisation which trades for a social purpose. This definition covers around 62,000 enterprises in the UK, and the sector is very diverse, ranging from charitable trading arms to major retail co-operatives. We will examine a range of types and legal structures for social enterprise, and outline the history of the sector and analyse government policy relating to social enterprise. Having established this contextual framework, the module then takes a practical approach which allows you to look at your own organisation and sector through the social enterprise 'lens'. The module then proposes some answers to the question: how does managing a social enterprise differ from running conventional businesses? Some key ideas around legal structures, finance, social impact and entrepreneurship are used to explore this subject. Finally, we look at examples from the region and nationally of how social enterprise has been introduced to existing organisations, and how new ones have been spun out, and outline the structure of a typical social enterprise business plan. The assignment is the preparation of a report, and summary presentation slides, discussing the feasibility of starting a social enterprise, or increasing the level of social enterprise activity, in the student's own organisation. On completion of this module you will be well-placed to pursue career opportunities in social enterprise and the wider third sector.

Social Impact Assessment

For social enterprises, charities and voluntary organisation, economic, environmental and social benefits are not part of corporate social responsibility, but the fundamental reason they come into existence. Effectively, third sector organisations have to deliver financial sustainability alongside these social and other impacts: a 'double bottom line'. However, while financial activity is accounted for and audited, very few organisations attempt a similar process regarding their impact. Social accounting and audit (SAA), and Social Return on Investment are two frameworks for organisations wishing to demonstrate their impact and improve their performance in serving their key stakeholders or beneficiaries. This module introduces the concept of impact assessment, and takes you through the each process as defined by the Social Audit Network and the SROI Network respectively. It also touches on some alternative and complementary impact tools which are popular in the third sector. Having been introduced to the subject and understood what social accounting is, you are then presented with the four stages of SAA, and the SROI process. We also examine a number of other tools including Charities Evaluation Service, Co-operative, and Environmental and Social Performance Indicators (CESPIs).The assessment consists of a final assignment which is a report/action plan for your organisation to undertake social impact assessment incorporating checklists from the preferred process, explaining what would be involved, and detailing potential costs and benefits from undertaking the process. Social impact assessment is arousing great interest within the third sector and knowledge of this area will improve your employability as managers.

Third Sector Leadership and Management

The third sector (civil society) in the UK comprises 137,000 charities and 62,000 social enterprises, employing 464,000 people (FTE) and with a turnover of some £60 billion per annum, representing significant growth since the turn of the century. Leadership in the modern third sector requires successful delivery against social objectives while ensuring the financial sustainability of the organisation, and leaders in turn need to possess a distinct set of skills. This module develops students' knowledge of the functional requirements of their role, and introduces techniques to enable them to lead their organisation in a competitive and dynamic environment. An examination of the sector overall, and of government policy relating to it, leads into discussion and evaluation of the business environment. You will be encouraged to critically reflect on your organisation's vision and mission, and then to use tools such as PESTEL to appraise your environment and the opportunities it presents. The topics of mapping and managing stakeholders, and competitor analysis are used to enhance strategic planning, before taking an objective look at the resources and competences the organisation needs to be competitive in their chosen field. The last part of the module deals with leadership - from successfully managing boards of trustees, to developing your own leadership skills. Assessment will be via a presentation of a strategic model (Porter's Five Forces or PESTEL) as applied to your organisation, followed by a written report on the strategy of the organisation. On completion of this module you will be able to progress to leadership roles within your organisation and develop your career in the wider third sector.