1. AM 7
Trade offs? Achieving your mission
in the consumer market
Chair: Olof Williamson, Sustainable Funding Manager, NCVO
National Council for Voluntary Organisations
Sustainable Funding Project

2. Jonathan Stearn
Director of Projects, Consumer
Focus
National Council for Voluntary Organisations
Sustainable Funding Project

3. Véronique Jochum
Research Manager, NCVO
National Council for Voluntary Organisations
Sustainable Funding Project

4. Civil society involvement in the market place
for consumers in vulnerable positions: research
findings
NCVO Sustainable Funding Conference 2012
28 November 2012
4

5. Introduction
Objective of the project
To map civil society involvement in the market place for consumers in vulnerable positions.
Scope of the project Useful definitions
Five consumer markets:
Civil society
• Insurance For this study we are including charities, community groups, social
• Banking and credit services enterprises, cooperatives, mutuals and all organisations that operate
• Energy independently of the state and for public benefit.
• Health equipment and products/mobility aids
Market place
• Furniture/household appliances. Where the sellers of a particular good or service can meet buyers of
those goods and services
Methodology Consumers in vulnerable positions
People who cannot choose or access essential products and services
Desk research based on the following sources: which are suitable for their needs or cannot do so without
• Business databases disproportionate effort/cost/time.
• Trade journals
• Trade associations/umbrella organisations
• Research institutes
• Organisational/corporate websites
• Other institutions.
5

6. Civil society, the state and the market: blurring boundaries
In recent years the boundaries between
civil society, the state and the market
have continued to blur, as reflected in
the development of social enterprises
and the mutualisation of public services.
The diagram here highlights how
different types of civil society
organisations are positioned in relation
to communities, the state and the
market – some are closer to the market
and the state than others.
Source: The UK Civil Society Almanac 2012 6

7. Generating income: the income spectrum
Donor Funder Purchaser Consumer
Gift economy Structured Open market
Includes philanthropic Grant funding market Some types of trading
giving and voluntary Usually restricted Payment according to are undertaken purely
donations. Provides funding provided to the terms set out in a to generate profit; other
unrestricted funding deliver outputs and/or contract between types can also
for organisations to use mutually agreed organisation and contribute to the
at their discretion to outcomes purchaser delivery of an
further their aim organisation’s mission.
Income in this way is
unrestricted
Asking Earning
Source: The Good Guide to Trading (NCVO)
7

8. Generating income: voluntary sector income in 2009/10
Total income: £36.7bn Earned income: £20.1bn
Investment income Private sector Trading subsidiaries
7% 3%
Voluntary income 4%
Voluntary sector
39% 6%
Individuals
33%
Earned income
55%
Statutory sources
54%
Source: The UK Civil Society Almanac 2012
8

9. Generating income: earned income from individuals
8,000
£6,346 £6,423 £6,578 £6,565
6,000
£6,098
£5,674
£4,442 £ 5,394
£5,238
4,000
£4,183
2,000
0
03
01
02
04
05
06
07
08
09
10
2/
6/
0/
1/
3/
4/
5/
7/
8/
9/
00
00
00
00
00
00
00
00
00
00
2
2
2
2
2
2
2
2
2
2
Source: The UK Civil Society Almanac 2012
9

10. Civil society and the consumer market: a multitude of examples
Offers phone,
broadband and mobile
services
Works towards better prices and
working conditions, local sustainability, A micro hydroelectric scheme
and fair terms of trade for farmers and
workers in the developing world
Grows and sells organic food
Provides holiday accommodation
Campaigns for real
ale, pubs and
drinkers’ rights
Second-hand shops selling
cloths, books, music and
collectables
Provides an affordable and environmentally-
friendly bus service for people without cars
Community run village
shop and post office
Represents passengers using
train services operated by
Provides information and guidance on
Chiltern Railways , London
veganism
Midland and Cross Country
Temporary shops
selling cards
10

11. Civil society and the consumer market: examples relevant to
consumers in vulnerable positions
Accreditation given by Age
UK for products considered
age-friendly
Provides tailor-made equipment for
the needs of people with disabilities
Offers resources, tools and training to
help people handle their money well
Conducts research and publishes consumer
reports for disabled and older people
Provides furniture and electrical goods
to the general public and people in need
Partnership with EDF Energy Provide loans at very low rates of interest
to support customers during and helps people manage their finance
power cuts
Provides affordable home
contents insurance Campaign, run by an alliance of
scheme for housing organisations, calling for warm
association tenants homes and lower energy bills
Partnership with Barclays to develop
Tests, evaluates and sells for an information booklet, specifically
people with hearing loss designed to help older people and
their families
11

12. Civil society and the consumer market: type of involvement
Accreditation and
Research and development Testing and evaluation
endorsements
Affinity partnerships Other partnerships Direct provision and supply
Information, advice and
Awareness and education
support
Campaigning Advocacy and representation
12

13. Civil society and the consumer market: rationale for involvement
Responding to a gap in
Addressing market failure Improving quality of supply
the market
Bringing about social
Improving accessibility, Meeting and responding to
change and tackling global
inclusion and fairness needs
challenges
Providing alternative models Generating income and
Providing alternative
of production and diversifying income
models of ownership
distribution streams
Developing skills and
providing employment
13

14. Conclusions
• Many civil society organisations are involved in activities that relate to the market place for consumers in
vulnerable positions, appealing to individuals as consumers but also as beneficiaries, supporters and activists.
• One of the most striking findings of this project is the diversity of involvement within the different sectors we
looked at and amongst the organisational examples we identified.
• Within each sector we found examples of several involvement types, although some were more prominent
than others. For instance, in the insurance sector affinity partnerships were particularly popular as were
product accreditations and endorsements in the health equipment/mobility aids sector.
• Individual organisations were, in most cases, involved in more than one type of involvement offering a mix of
activities, and had more than one reason for being involved.
• Many initiatives aimed to improve access and fairness - some did this by offering better value for money,
others by ensuring that the needs of their beneficiaries are known and taken into account; and some
combined both approaches.
• Being involved in multiple ways and for multiple reasons can be challenging if organisations are pulled in
different directions and if rationales for involvement compete. It is particularly a challenge for larger
organisations and could be, in the current context, increasingly difficult for organisations looking for
alternative funding sources to statutory sources.
• An organisation’s values can provide an effective means of checking and challenging the appropriateness and
effectiveness of the services and goods provided.
14

15. on mission
Majority activity Prime target
Grant /donation Primary trading
funded
requires subsidy makes money
Subsidised activity Non-primary trading
Stay out! Proceed with caution
off mission
National Council for Voluntary Organisations
Sustainable Funding Project

16. AM 7
Trade offs? Achieving your mission
in the consumer market
Chair: Olof Williamson, Sustainable Funding Manager, NCVO
National Council for Voluntary Organisations
Sustainable Funding Project