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The Third Sector: Changes on the Horizon

A crowd of people, that look blurry as they all walk past each other quickly in the street.

Here’s a round-up of some of the higher-level developments in the charity sector. While some of this won’t affect typical charities directly, they do paint a picture of the environment we’re operating in. This Guardian editorial  gives a good recent history and call to action to the government: “A sector which is a proven social and economic asset deserves better than a constant, failing battle to do more with less”.

First, the Charity Commission welcomes Julia Runwin as its incoming chair—a choice widely seen as positive. Runwin is known for caring about charities rather than fighting them, following the change of tone which Mark Simms brought as interim chair. which feels refreshing. Let’s hope for good things from Julia. 

It’s no secret that there have been widespread cuts to infrastructure support for the sector over the last decade+. So it’s interesting to see the Henry Smith Foundation launching its Better Boards programme, aiming to strengthen charity boards and make them more inclusive. Four key organisations—Reach Volunteering, Board Racial Diversity UK, the Young Trustees Movement, and the Association of Chairs—will lead the charge. If you’re not familiar with them, do check them out. Also good to see longer-term core funding from Henry Smith too.

The on-going drumbeat of cutbacks continues. Shelter is facing strikes over pay disputes and working conditions, Marie Curie has cut nearly 100 staff after commissioning income wasn’t able to keep pace with the cost of delivering hospice care, and Oxfam is grappling with leadership challenges and a £20m deficit leading to over 140 staff redundancies. Sadly these aren’t isolated stories—they’re symptoms of a sector under immense pressure.

The government’s Civil Society Covenant is good, in that the government isn’t actively attacking the sector, and let’s hope it brings some actual change. It’s meant to redefine the relationship between the government and the voluntary sector (again).  An oversight board is being put together, chaired by NCVO, but that will hopefully involve people like you, working on the ground. The new Model Grant Funding Agreement may eventually lead to a bit more consistency, and there’s even an opportunity to complain if you’re offered a Government grant that doesn’t use them and doesn’t explain why (* Other Terms and Conditions apply. Of course).

On the legal front, things feel increasingly fraught. Recent changes by the WI and Girlguiding around trans inclusion appear driven by fear of lawsuits rather than legal necessity. And with EHRC guidance still pending, uncertainty reigns. A statement from TransActual outlines how these changes are affecting charities.  Check out Third Sector Against Transphobia | Groups | LinkedIn. I don’t think charity governance is best run on the basis of fear of law suit and associated costs.

Another thing that keeps changing is the use of AI. The fundraising regulator is recommending that charities publish an AI policy improve trust and transparency, and they will be bringing out some guidance, particularly around AI involvement in atuomated decision-making.

So… lots of challenges, as ever. I’m not expecting too many Government ministers to be reading this blog, but hopefully they saw the Guardian one and 2026 might indeed bring about proper investment in our communities.

Photo by mauro mora on Unsplash

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