Sector think-tank New New Philanthropy Capital has published its latest report, Community organisations: A guide to effectiveness, offering a guide to help community organisations ensure they are as effective as possible.

The paper covers six areas—activities, results, leadership, people and resources, finances and ambition—and is based on our methodology for charity analysis, which we published last year in our Little blue book.

The report notes community organisations are key players in any realisation of the government's Big Society agenda.

A third of community organisations in England work in deprived areas, and they are particularly good at reaching isolated or disadvantaged people who might not typically seek help from a charity.

They come in all shapes and sizes, from local village halls to large, modern urban centres.

But they all share a common goal: to help local people and develop their community.

But, like many charities, community organisations are facing funding cuts.

They need to be able to demonstrate the value of their work, and the difference they make to their community, notes NPC.

Angela Kail, report author, said: "Having the freedom to listen to communities and come up with innovative solutions to tackle local problems is key to these organisations’ success.

"For example, Kiveton Park and Wales Community Development Trust came up with the idea of teaching cash-strapped families about raising money through selling things on e-bay. The best community organisations are those that take a proactive approach to finding out what local people need so they can really tailor their services."

Key points in the report highlight:

Community organisations have been highlighted by David Cameron as an important part of his Big Society – our report finds they are particularly good at reaching people who are isolated, disadvantaged or might not typically seek help from a charity. A third of community organisations work in deprived areas.

As councils set their new budgets, and with funding very tight for the next year, our new report on community organisations provides a practical guide on how community organisations can be more effective looking at six areas: activities, results, leadership, people and resources, finances and ambition.

Looking at results can be challenging for community organisations but we found the most effective ones are those that look at what projects achieve and as a result improve their own services. Some of the best ones are those that take a proactive approach to finding out what their local community needs eg The Trinity centre in east London gives out a questionnaire each year to people who use its services to find out if they are meeting their needs or need to develop new services.

Like charities community organisations are under increasing pressure to demonstrate impact but many struggle to do this. Our joint research with the Institute for Voluntary Action Research over the last two years finds that a one-size-fits-all approach to impact measurement is not realistic. Organisations may need to look a different approaches and choose the one that fits best with what they do.

Trustee boards of community organisations often have a narrow range of skills and would benefit from a skills audit. A good board is essential as CO’s are often complex.
Community organisations should look at working with other local groups and focus on meeting their mission rather than simply growing their own organisation.

Community organisations often come up with innovative solutions by listening to their communities. They often deliver services to help tackle disadvantage such as literacy classes or money advice. While some receive statutory funding many develop innovative services that fall outside government aims

By understanding how community organisations work and offering the right sort of funding (often CO’s need unrestricted funding to respond quickly to changing needs in their communities) funders can make a difference to the development of community organisations. They also have an important role to play in encouraging analysis and effectiveness.

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