CFDG welcome Public Services (Social Value and Social Enterprise) Bill

22nd November 2010

CFDG welcomes Chris White MP’s Private Members Bill which promotes the inclusion of social value measurements in public sector commissioning.  The Public Services (Social Enterprise and Social Value) Bill, which had its second reading on Friday, would require public authorities to consider how procurement contracts could be used to “improve the economic, social or environmental well-being of the relevant area”. 

CFDG has led the way in building awareness around the need to recognise the wider impacts of public investment, maintaining that lower cost services do not always coincide with the best value for money in terms of quality and impact.  CFDG Policy Manager Megan McInally said “with calls for a drive towards transparency, accountability and efficiency, there is an even greater need for charities to develop ways of communicating the value of their services through demonstration of wider impact.  CFDG is working with our members and the wider sector to develop initiatives for promoting improved skills in impact reporting and providing practical support for charities in this area.” 

CFDG’s own research project on impact reporting, which is being conducted in partnership with CASS Business School, found that many charities are providing information on their social outcomes within their external accounts.  However, very few are providing the same level of information on long term impact, despite the fact that over half of survey respondents are collecting this information for their own use. 

Unlike private companies, charities are set up to deliver a public benefit, and almost all see impact reporting as an important way of showing the extra value they deliver. If it is passed, this new requirement on commissioners would allow charities to be recognised for the valuable impact they can have on society. However, it is important that Government interventions in this area do not place undue burdens on charities.

Megan McInally added “CFDG research has shown that there is not one universally applicable model of impact reporting.  The social value added by a charity working in International Development to say, a hospice, is wildly different.  Any legislation should not be too prescriptive or bureaucratic but should encourage commissioners to recognise a variety of forms of impact reporting in any assessment of social value.”

Megan McInally continued “we hope to work with Government on developing legislation and guidance in this area.  The research base on social impact is growing and charities are becoming more and more aware that funders and the general public want clear demonstration of impact from investment.  Senior charity finance professionals are well placed to look strategically at how their organisation can embrace these themes.”     

- Ends -

Notes to Editors:

1. CFDG is the charity that promotes best practice in charity finance management, supporting finance managers with conferences, training and a wealth of web-based information.

2. CFDG’s circa 1,650 members are responsible for the finances of charities with a wide variety of income levels.  Between them our members manage some £17.53bn in charity income per year.  For further information please contact on 0207 250 8347.

3. CFDG are currently conducting research with CASS Business School into the take up of impact reporting and the barriers associated with it.  This working group is due to report findings in the next few months.


  • Email
  • Twitter
  • Facebook
  • Linkedin

© Charity Finance Group / © Charities Resource Network / Registered Office: 15-18 White Lion Street, London, N1 9PG.
A Company Limited by Guarantee. Registered in England No. 3182826, Registered Charity No. 1054914, Registered VAT No. 945 6038 09.