January 2001
What is the Compact?
The compact is an agreement between Newcastle City Council and the voluntary and community sector in the city.
The compact describes the relationship between the two. It is not a legally binding document. The authority of the compact comes from the fact that the City Council and the voluntary and community sector have made an agreement to work together in the way the compact describes.
Newcastle City Council and Newcastle Council for Voluntary Service have worked together to develop this compact. It is based on the compact between the national government and voluntary and community groups that was agreed in 1998.
Shared vision
The idea behind this compact is that voluntary and community activity is central to developing a democratic, socially inclusive city. This compact is an expression of the commitment of the City Council and voluntary and community groups to work together for the benefit of communities in the city.
Voluntary and community groups, as independent, non-profit-making organisations, bring particular value to Newcastle and fulfil a role that is distinct from statutory agencies and the private sector. This role includes:
- Giving individuals the chance to contribute to public life and the development of communities by providing opportunities for voluntary action. In doing so, engaging the skills, interests, beliefs and values of individuals and groups.
- Making a major contribution to Newcastle’s social, cultural, economic and political life by:
- providing important services;
- helping people who use statutory services get involved in their design;
- acting as advocates.
and in doing so voluntary and community groups also promote equality and diversity and challenge social exclusion.
Shared principles
1. The shared principles which support this compact are set out below.
1.1 Voluntary action is an essential part of a democratic society.
1.2 An independent and diverse voluntary and community sector is central to the wellbeing of society.
1.3 In developing and delivering public policy and services, the City Council and voluntary groups have very distinct but complementary roles. The main difference between these roles is that the City Council is mainly driven by statutory duties and government policies, while voluntary groups are driven by their charitable aims.
1.4 There is added value in working in partnership with others towards common aims. Meaningful consultation between the City Council and voluntary and community groups will:
- build relationships;
- improve policy development; and
- improve the design and delivery of services and programmes.
1.5 The City Council and voluntary and community groups have different forms of accountability and are answerable to a different range of stakeholders. But both need to be impartial, accountable, open, transparent, honest and able to take a lead role.
1.6 Voluntary and community groups are entitled to campaign within the law to promote their aims.
1.7 Among other things, the City Council plays a significant role as a funder of some voluntary and community groups. Funding can be an important part of the relationship between the City Council and the voluntary and community sector.
1.8 Both the City Council and voluntary and community groups recognise how important it is to promote equal opportunities, regardless of race, age, disability, gender, sexuality or religion.
1.9 Sharing of good practice and common standards is of benefit to the City Council and the voluntary and community sector.
1.10 The role of advocacy for users of statutory services is best carried out by independent agencies.
1.11 Volunteers bring considerable added value to Newcastle.
The City Council's undertakings
2. The undertakings by the City Council are set out below.
Value
2.1 The City Council recognises the value of the voluntary and community sector to Newcastle’s wellbeing, and understands that this value is not limited to those organisations that it grant aids.
Independence
2.2 The City Council recognises and supports the independence of the voluntary and community sector. This includes the right of voluntary and community groups to campaign within the law, to comment on local and central government policy and to decide upon and manage their own affairs. This is the case regardless of whether or not the City Council gives grant aid.
Funding
2.3 The City Council will take account of the recommendations made in the Better Regulation Task Force’s report ‘Access to Government Funding for the Voluntary Sector’. This report referred to the need for greater equality, targeting, consistency and transparency in the way that government funding is distributed. The City Council will pay particular attention to the idea of strategic funding, making sure that voluntary and community groups can continue to respond to government and local authority schemes and local needs.
2.4 The City Council will work with the voluntary and community sector to develop a code of good funding practice, within its duties under ‘Best Value’. This code of practice will promote:
- the distribution of resources in line with clear and consistent criteria, including value for money;
- funding policies which take account of voluntary and community groups’ aims and their need to work efficiently and effectively;
- common, transparent arrangements for: agreeing aims, setting targets and measuring performance; organising prompt payment of funding; reviewing financial support; consulting on changes to funding and informing about future funding as early as possible (normally before the end of the current grant period); and
- the value of long-term, multi-year funding, where this is appropriate, to help with long term planning, stability and sustainability.
2.5 The City Council recognises the importance of infrastructure to the voluntary and community sector and to volunteering. The City Council will support the development of this infrastructure where appropriate.
2.6 The City Council will take account of the role of the voluntary and community sector when responding to government initiatives, and when producing strategies that could affect voluntary groups’ funding.
Policy development and consultation
2.7 The City Council will assess new policies and procedures, particularly at the development stage, so that it can identify as far as possible the implications for voluntary and community groups.
2.8 Depending on urgency, sensitivity and confidentiality, the City Council will consult with the voluntary and community sector on issues that are likely to affect it, particularly where new roles and responsibilities for voluntary groups are being proposed. The City Council will carry out any consultation well beforehand, to allow reasonable time to respond. This will take into account the need of voluntary and community groups to discuss issues with their users, beneficiaries and stakeholders. Consultation should have real room for negotiation, and not simply be a request to agree to something the City Council has already decided.
2.9 The City Council will take account of the particular needs, interests and contributions of those voluntary and community groups that represent women, minority groups and other people who face discrimination and social exclusion.
2.10 The City Council will keep confidential any information provided by the voluntary and community sector, within the boundaries of the law and the City Council’s public duties, when it has been given access to the information on that understanding.
2.11 The City Council will work with the voluntary and community sector to develop a code of practice covering how it will carry out consultation, policy assessment and putting policies into practice. This code will draw on guidance on impact assessment and excellence in consultation developed by the Cabinet Office.
Better Government
2.12 The City Council will promote:
- effective working relationships;
- a consistent approach; and
- good working practices between the City Council and the voluntary and community sector, particularly about issues that involve more than one City Council department.
2.13 The City Council will follow the principles of open government (which aim to make sure that it makes its decisions and findings public whenever possible), and good regulation.
2.14 Each year the City Council will review how the compact is working together with the voluntary and community sector.
2.15 The City Council will encourage other public organisations to adopt the compact.
Voluntary and community sector undertakings
3. The undertakings by the voluntary and community sector are set out below.
Funding and accountability
3.1 Voluntary and community groups will maintain high standards of governance, behaviour, honesty and integrity. They will also meet their reporting and accountability responsibilities to those people who fund and use their services. Where necessary, they will follow the accounting rules for charities.
3.2 Voluntary and community groups will respect and follow the law and, in the case of charities, follow guidance from the Charity Commission (including advice about political activities and campaigning).
3.3 Voluntary and community groups will accept that the City Council can give or refuse grants. It can also put appropriate conditions on the use of grants, click here to see conditions on the use of grants outlined in paragraphs 2.3 to 2.6.
3.4 Voluntary and community groups will develop quality standards that are appropriate to the organisation concerned, and in line with Best Value principles.
Policy development and consultation
3.5 Voluntary and community groups will make sure that people who use their services, and their volunteers, members and supporters are informed and consulted, where appropriate, about activities and policy positions when presenting a case to the City Council or responding to the City Council in the course of such representations.
3.6 Voluntary and community groups will keep confidential information that the City Council gives them, when they have access to it on that understanding.
Good practice
3.7 Voluntary and community groups will promote effective working relationships with the City Council, other agencies, and across the voluntary and community sector.
3.8 Voluntary and community groups will involve people who use their services, wherever possible, in developing and managing their activities and services.
3.9 Voluntary and community groups will put in place policies for promoting good working practices and equal opportunities in:
- activities;
- employment;
- involvement of volunteers; and
- providing services
3.10 Each year, the voluntary and community sector will review how the compact is working with the City Council.
For more information about the Compact please contact
Newcastle Council for Voluntary Service
MEA House
Ellison Place
Newcastle upon Tyne
NE1 8XS
Tel: 0191 232 7445
Social Policy and Strategy Unit
Strategic Support Directorate
Newcastle City Council
Civic Centre
Newcastle upon Tyne
NE1 8PR
Tel: 0191 232 8520 ext. 25892
Glossary of Terms
‘Voluntary and community sector’
This is a collective name for all the groups and organisations which
- Do not exist because of a statutory reason (unlike local authorities, the police, health authorities and so on)
- Do not exist to make private profit (unlike businesses)
These groups may be run entirely by volunteers, or they may employ staff. The management committee will always be made up of volunteers.
‘Social exclusion’
This means the problems faced by some people in society who are not able to get services or be involved in their communities in the same ways as other people. This is because they are discriminated against or because they face particular problems like long-term unemployment.
‘Stakeholders’
These are the people or groups who have an interest in what an organisation does. They might be:
- the people who use its services;
- those who fund its work;
- other organisations it has to work with; or
- other organisations with an interest in its work.
‘Strategic funding’
This means having an overview of the kind of activities and organisations that should be funded to meet particular long term aims.
‘Best value’
This is the legal duty for local authorities to review all of their services over five year periods to make sure they are efficient, effective and giving value for money.
‘Infrastructure’
In the context of this compact, this means independent organisations within the voluntary and community sector that are set up to provide voluntary and community groups with advice and support, bring the wide variety of voluntary and community groups together and represent their interests in dealings with other agencies.
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