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Working with Local Infrastructure Organisations to engage smaller VCFSE organisations: Good practice guide

Working with Local Infrastructure Organisations to engage smaller VCFSE organisations: Good practice guide
This good practice guide sets out some simple, practical steps that councils can take to work with infrastructure organisations in order to strengthen and engage effectively with smaller Voluntary Community Social Enterprise (VCSE) organisations.

Foreword

Smaller voluntary and community sector organisations play a vital role in our local areas, providing support and services that reach deep into communities and often reaching residents that other organisations struggle to. The recent series of crises and challenges that the country has faced – from COVID-19, through refugee arrivals from Syria and Ukraine, to flooding and the cost of living crisis – have seen many councils engaging effectively with smaller and grass-roots Voluntary Community Social Enterprise (VCSE) organisations. That joint working has helped to deliver food packages to vulnerable people during lockdown, to ensure that there is support and a welcome for refugees arriving in communities, or assisted with tailoring cost of living support packages to maximise their impact.

Outside that crisis response, many councils have excellent working relationships with smaller VCSE organisations. However, sometimes the mismatch of size, resource and knowledge can mean those relationships either don’t form or don’t work as well as they could. Local infrastructure organisations can be an effective bridge between councils and the full ecosystem of VCSE organisations, overcoming those mismatches, helping to bring the full range of VCSE voices to the table, and empowering smaller organisations to work effectively with councils. 

This good practice guide sets out some simple, practical steps that councils can take to work with infrastructure organisations in order to strengthen and engage effectively with smaller VCSE organisations. It is based on a large number of real-life conversations with councillors, infrastructure and VCSE organisations. The recommendations are underpinned by some inspiring case studies of how strong relationships based on trust and partnership working have delivered real benefits for residents in many parts of England, in areas as diverse as public health, asylum hotels and grant-giving.

I hope you will find this guide a useful resource and that the examples of innovative working will inspire councils to think about how effective working with infrastructure organisations can help to secure a thriving VCSE ecosystem that is an effective partner in delivering for our communities.

Cllr Heather Kidd MBE

Chair, LGA Safer and Stronger Communities Board

Introduction and about this guide

This good practice guide aims to offer guidance and examples of good practice to inform council officers and elected members how working with local voluntary, community, faith and social enterprise (VCFSE) infrastructure support organisations (LIOs) can assist councils to work in partnership with small (VCFSE) organisations. These partnerships bring benefits to local councils including reaching and engaging with communities furthest from council services, building the capacity of VCFSE organisations to deliver activities and services for local residents, offering flexibility and agility to respond to crisis situations and meeting the needs of minoritised communities.

Evidence to contribute to this guide was gathered by NAVCA (National Association for Voluntary and Community Action) between November 2023 and March 2024 through interviews with councillors, council officers, staff of LIOs and local VCSE organisations. 

Two workshops gathered specific information on culture, practice, mechanisms and barriers to partnership working. The project was overseen by a steering group comprising three local councillors, representatives from small VCFSE organisations in receipt of council funding, LIOs and other partner organisations. The seven case studies featured demonstrate how local councils can benefit from engagement with small VCFSE organisations facilitated by LIOs, with significant ultimate benefits for residents and communities. They reflect some of the more difficult challenges that councils face reaching those furthest from council services.

The current funding pressures on all councils present challenges for the VCFSE sector delivering on behalf of the council, and for LIOs providing networking, convening and support for the VCFSE sector. Although councils are not the sole funder of VCFSE organisations, many see their close connections and partnerships with councils as critical to delivering activities and services for beneficiaries and representing their needs to the council. Reduced funding across the board for VCFSE organisations poses a risk to the sector as a whole in the local area, and as council funded or delivered services are reduced, VCFSE organisations also see an increasing demand to which they are not resourced to respond. This resource is therefore published within this complex and difficult environment for all.  

Why work with the VCFSE sector?

Working with the voluntary, community, faith and social enterprise sector brings many benefits to councils. These include the direct delivery of services tailored to meet specific needs through use of local knowledge and expertise, the ability to reach groups and communities furthest from council services, the delivery of activities and events that would not be possible for the local authority (see the LGA report The state of strategic relationships between councils and their local voluntary and community sector) and as a core partner in developing and delivering council strategic priorities and outcomes. 

The VCFSE sector can be a core partner for councils, part of an ecosystem of voluntary, community and statutory activities and services to which they contribute significant social and economic value (more information on this is available in ‘The value of small: in-depth research into the distinctive contribution, value and experiences of small and medium-sized charities in England and Wales’ 2018). VCFSE organisations use their knowledge, the trust from local communities, and ability to act nimbly and innovatively, to deliver better outcomes for service users and taxpayers. More information on this is available inthe New Philanthropy Capital report Full Cost Recovery in VCSE Contracts: research into the experience of Kent County Council’s VCSE partners in public service commissioning). To explore this in more detail see the LGA toolkit on Partnership working with the voluntary and community sector.

There are hundreds if not thousands of VCFSE organisations in each council area. 80 per cent of registered charities in England are either small (defined as having an income of £10,000-£100,000) or micro (with an income of less than £10,000) VCFSE organisations. Some may be run entirely by volunteers, others with only a few paid members of staff. Faith communities have an important role across society and often provide core services to the most disadvantaged or excluded communities. There are also many community groups that are not formally registered as charitable bodies. This inherent diversity in the sector is of significant benefit to individuals, communities, councils and the statutory sector. This diversity can make it challenging to know how to engage with such a varied group of organisations, each with something unique and valuable to contribute to society as a whole. 

The role of Local Infrastructure Organisations

It is unrealistic for any council to be able to interact meaningfully with all the VCFSE organisations in their area, so working with and through the local VCFSE infrastructure support organisation (LIO) can be crucial. LIOs provide essential functions for councils and the VCFSE sector, delivering outcomes for both. LIOs may be known by various names such as Councils for Voluntary Services (CVS), voluntary action, community action or communities first. LIOs roles include: 

  • act as an effective interface between council and the VCFSE sector, building relationships, facilitating partnerships and collaborations
  • work across specific geographical areas, responding to local needs and interacting with thousands of voluntary and community organisations.
  • work in partnership with local councils, health systems and other statutory partners, bringing knowledge and intelligence of the assets, skills and needs of local communities. This can be described as a boundary spanning, or brokerage role, with LIOs using their own (and the wider VCSE sector’s) skills, knowledge and presence to connect with the community (for more on this, see this LGA report on working with the VCSE sector to increase civic participation). 
  • provide outcomes for both local authorities and the VCFSE organisations they work with.

Sometimes described as the ‘glue’ of the VCSE sector, the work of LIOs may be intangible or ‘invisible’. More about this is available in The National Lottery Community Fund’s Infrastructure Design Lab: Established programme learnings and recommendations and 360 Giving’s 2023 Sector Infrastructure Funding Analysis), especially to those not directly involved in the sector, and can be described through four functions of infrastructure:

  1. leadership and advocacy of and with the VCFSE sector
  2. partnerships and collaboration bringing together VCFSE organisations with each other and with statutory partners including local authorities and health systems
  3. capacity building for the VCFSE sector
  4. support for volunteering.

These four functions contribute to the support, facilitation and networking that the diverse VCFSE sector needs to thrive and work with statutory partners.

The objectives of local authorities, the VCFSE providers and LIOs are ‘ultimately aligned: delivering positive outcomes for people – this is something distinctive to VCSE providers.’  Together councils, LIOs and the VCFSE sector are all working to benefit local communities and deliver the activities, services and the outcomes they need.

Creating a culture that values participation by small VCFSE organisations

VCFSE organisations are key partners in public service delivery. A vibrant and thriving VCFSE sector is able to: 

  • reach communities that are furthest away from council services
  • provide knowledge and insight on the assets, needs and aspirations of communities of place and interest, to inform decision-makers and funders
  • act flexibly, nimbly and in partnership when responding to need and crisis
  • deliver cost-effective activities and services closest to where they are needed most
  • bring funding from other sources into the local area.

A culture that values participation by small VCFSE organisations is created through the quality of relationships between VCFSE organisations, LIOs, council officers and elected councillors. These relationships will be both formal and informal and need to have consistency and transparency. These relationships also need to be part of a continuous dialogue, not just one off or occasional, which requires resources to maintain as well as start. 

Effective long term relationships are facilitated by open and transparent communications in both directions, aimed at building trust, in an environment which recognises that all parties have something unique and valuable to bring to the table, in particular that smaller VCFSE organisations may be able to offer unique insight on issues faced by local communities and that LIOs have a role in helping the council navigate to those insights. This can be enabled by providing space for council, VCFSE and LIO to meet together regularly through a strategic forum or framework that enables partnership working and decision making  an example of how this can work is showcased by Suffolk County Council.

Such a space can help to agree shared objectives and outcomes and facilitate the adoption of co-design or coproduction processes to identify shared objectives or solve local problems. An environment in which there is equality of status helps to ensure problems are openly and honestly shared and facilitates constructive challenge. Further, relationships based on trust and information sharing help to ensure that clear expectations are set and that all actors understanding each others’ constraints, such as the current funding environment. 

Effective relationships can also be built between local authorities and the VCFSE sector are when the LIO and council have working relationships that extend from chief executive and council leader level to on the ground development and delivery teams.

This is demonstrated very practically in Westmorland and Furness and strategically in Suffolk. These multi-layered relationships mean that vital information, knowledge and learning can be shared and acted on quickly, and trust is built across many frequent interactions.

Many council departments already benefit from strong partnership with LIOs and the VCFSE sector. Other council departments which do not have the same levels of interaction with the sector, may not be as knowledgeable and or aware that the VCFSE has a contribution to make to the outcomes they are seeking to deliver. Council officers and elected members who have experience of working with the VCFSE have a role in helping colleagues to learn more about the value of working with VCFSE organisations and how to do so effectively, as demonstrated by East Riding of Yorkshire Council. Effective ways to assist council departments with less knowledge of the VCFSE include:

  • identifying cross-departmental projects where experience of working with VCFSE can be shared
  • the strategic influence of a senior council officer or portfolio holder, sharing knowledge and understanding of the sector and identifying primary contacts
  • inviting council staff to participate in joint events with council and VCFSE organisations
  • a series of ‘get to know you’ sessions with a few VCFSE organisations as part of staff wellbeing sessions
  • LIO acting as a broker, facilitating introductions between the council departments and relevant VCFSE organisations. 

A culture that values participation by the VCFSE is also about understanding the context and environment that each party is working within. For example, that VCFSE organisations may have limited human capacity to engage with council initiatives or local VCFSE forums without investment. Similarly, the VCFSE sector may have limited knowledge and understanding of a council's democratic, constitutional and financial responsibilities. LIOs can help to bridge this knowledge gap in both directions. 

These sorts of limitations inevitably contribute to power imbalances within relationships, particularly for LIOs and VCFSE organisations in receipt of funding from the council and who may fear, reasonably or not, funding being lost. This can be exacerbated by either the requirement to innovate, carry out new activities for every grant application, or very short-term funding arrangements. For example, one VCFSE organisation delivering core council services reported only receiving six months of funding at a time. Although the contract was renewed regularly, there was often a gap of a few months between funding, and this meant the organisation subsidising delivery from other sources and losing some staff due to the uncertainty created. Relationships that recognise when power imbalances occur, or when poor practices prevent good working relationships, allow for honest conversations and more effective decision making and delivery. 

Power imbalances can be minimised through creating spaces and forums where council, LIO and VCFSE actors can engage on an equal footing (as in Suffolk), or through working with LIOs to ensure that areas where such imbalances arise, such as procurement, are specifically addressed through engagement with LIOs to co-produce processes so they do not disadvantage smaller VCFSE organisations.

Creating a culture that values participation by small VCFSE organisations recognises that the VCFSE are often able to innovate and work flexibly to achieve outcomes in different ways.

The role of LIOs in facilitating local council working with small VCFSE organisations

LIOs should seek to develop transparent and trusted relationships with both the council and the local VCFSE sector. LIOs must act impartially on behalf of the VCFSE sector and be seen to do so, without benefit to itself. Providing clarity on the work that the LIO is tasked to do when funded by the council is necessary so that it is clear in whose interests the LIO is acting at a point in time. 

LIOs have a role to support councils to expand their knowledge of the diversity, distribution, strengths and capacity of the VCFSE sector and what they can offer to council priorities, an example of this is the City of Cambridge (see for example the City of Cambridge case study below)  to understand how to work with small VCFSE organisations in practice.

LIOs can help to ensure that the VCFSE sector is represented on strategic boards and forums, and in consultation and other engagement; in developing partnerships and collaborations with health systems, other strategic partners and VCFSE organisations; and acting as a convenor in the local area bringing together the council with relevant partners such as health, education, emergency services and the VCFSE sector.

As demonstrated in Sandwell, LIOs can help councils to effectively and practically achieve service delivery outcomes through the smaller-scale, diverse VCFSE sector with additional benefits for communities, instead of procuring through a single, large-scale contract. Similarly, LIO input could be valuable in ensuring that national and local funding pots are adapted to enable small VCFSE organisations to participate, and in avoiding the creation of highly competitive or complex funding processes or overly onerous reporting for VCFSE organisations by developing collaborative and straightforward approaches.

LIOs provide support to small VCFSE organisations through:

  • representing the skills, strengths and challenges of the VCFSE sector to the council, health systems and other statutory partners
  • advocating for the VCFSE sector with the council, offering encouragement and support for the council in working with the sector, as well as constructive challenge around processes and practices
  • facilitating partnerships and collaborations between small VCFSE organisations to play to mutual strengths and respond to opportunities to deliver funded projects together, as shown in Sandwell 
  • developing the skills and capacity in the small VCFSE sector needed to work in partnership with the council to deliver activities and services
  • acting as a facilitator of contacts between VCFSE organisations and the relevant council department, officer or portfolio holder, for example with Oldham Council
  • providing regular, timely communications to the VCFSE sector about the work of the council and opportunities for partnership working or funding.

Identifying and dealing with barriers to partnership working with the VCFSE

Barriers actual or perceived, often arise when there is a lack of trust, openness or poor communication. They also arise in relation to a lack of time and resources, both financial and personnel. Relationships that are built on mutual respect and with a knowledge and understanding of the other parties are less likely to encounter problems. However, barriers to partnerships working include a lack of capacity on all sides to build and sustain productive relationships, sometimes leading to a lack of knowledge and understanding of LIOs and the VCFSE sector on the part of council officers responsible for relationships and commissioning of the sector – and vice versa. 

These knowledge gaps can lead to unrealistic expectations on both sides: unrealistic expectations of the VCFSE – including that their services are free, or they exist only to deliver council services; or unrealistic expectations of the council – that funding, officer time and partnerships will always be available.

Further barriers to sustained partnership working can include a focus on short-term funding and outputs over longer term agreements and outcomes, or relationships that are framed only in the context of commercial considerations, with an emphasis on competitive tendering rather than working to develop partnerships. This can include a perception that procurement teams apply rules over-zealously and in risk averse ways, potentially seen as inappropriate to the size of contract or bidding organisation, without challenge from commissioners.

More prosaically, barriers can arise from difficulties in finding the right responsible officer or from a high turnover of staff, either within the council or within a VCFSE organisation, limiting relationship development.

Overcoming barriers is very much a multi-way process so that consistency and transparency are essential as are moves to build trust and confidence. Finding a common purpose to achieve shared mutual outcomes for residents and communities, also helps break down barriers where one party might be operating in a space of anger and resentment.

All parties are ultimately working to benefit beneficiaries and communities, and this common ground can be a driver for partnership working to address barriers and other problems. Barriers can be overcome by:

  • fostering trust between all parties 
  • co-produced activities and outcomes
  • an understanding of the strengths, expectations and limitations of each party (council, VCFSE organisation or LIO) 
  • open clear communication so that difficult conversations can take place
  • a council recognising that they hold more resources and power in the situation
  • VCFSE organisations recognising that they are often able to act with greater flexibility than councils.

These six points are well demonstrated by the case study below from Oldham Council.

A co-produced strategic framework, whereby councils, LIOs and VCFSE organisations come together to set out their shared aims, objectives, values and commitments to mutually beneficial ways of working can be helpful to prevent some of these issues arising in the first place. Suffolk Collaborative Communities Board provides an example of this, particularly for complex systems.

Geography and rurality may also place difficulties on partnership working and rural proofing will be vital for some councils. A sparse population and longer travel times and distances puts pressure on the provision of public services and strong community engagement. This is compounded by smaller communities having less informal provision such as lunch clubs or social activities, than in larger settlements. In sparsely populated rural areas small VCFSE organisations may usually be very small and / or very locally based, have a limited pool of volunteers, with limited capacity or perhaps interest in scaling activities. This needs to be taken into account and incorporated into commissioning and grant-awarding processes otherwise it could leave those in most need very isolated. here are also contrasting challenges when commissioning in predominantly urban areas, such as more transient populations, communities who do not access council services, volunteer pools that are limited by time poverty and demand for services that is particularly elevated.

The reduced funding that local authorities have available for all aspects of their work has resulted in significant and rising pressures and constraints. This means that funding available for various VCFSE activities and services may be reduced or continued without an uplift for inflation. There can be various unintended consequences for small VCFSE organisations such as delayed decision making resulting in gaps in funding so that service provision either stops or more likely is cross subsidised from other sources. Decisions that reduce the funding available for organisational overheads or training, may have a disproportionate impact on the VCFSE organisation destabilising it financially as it cannot cover its essential costs. There may also be a reluctance to renegotiate agreements particularly when VCFSE organisations recognise the funding pressures on councils. Cuts to VCFSE sector funding may also result in an increase in demand for services still provided by the local council.

Another barrier for VCFSE organisations is complex and time-consuming processes for commissioning processes whether for contracts or grants. Examples include 20 pages of guidance notes on how to apply for £1,000 of funding from a council; a very short time to make an application for funding (two weeks) meaning that other work has to stop for an application to be made; drawn out decision making process of several months; delays in confirming previously agreed renewals of contracts, which impacts on staff wellbeing and retention. Working with LIOs to design more VCFSE-friendly commissioning processes, councils could lower these barriers through measures such as longer application window, ensuring the complexity of paper work and processes is minimised, and offering clear and accessible information on timescales and decision making.

LIOs have a role in overcoming barriers by:

  • helping the council to understand and navigate the VCFSE sector and advocating for its role in delivering the council’s strategic priorities
  • explaining the work of the council, its priorities and policies to the VCFSE sector 
  • helping to create space for co-design and co-production to take place
  • building partnerships and collaborations with VCFSE and council 
  • working with the council to simplify commissioning whether for contracts or grants
  • distributing small grants to the VCFSE sector on behalf of the council, as shown by partnerships in the London Borough of Hackney. 
  • working with the council to rural proof work with VCFSE sector
  • supporting VCFSE organisations to renegotiate funding agreements. 

Achieving a stronger and more resilient VCFSE sector is currently extremely difficult. The sustainability and resilience of VCFSE organisations is challenged within the current economic and social environment. Decisions on reducing funding, or on changing funding arrangements or priorities, would benefit from starting with informal conversations and soundings, where this is legally possible, using the relationships of trust established with the LIO and VCFSE sector, rather than being notified at the point when formal public consultation starts. Involving the VCFSE sector and LIOs from the beginning of discussions to coproduce solutions helps to bring the best outcomes for communities despite the need to make cuts. Similarly, decisions need to be communicated with clarity and clear reasoning. 

Building effective trusted relationships

Trusted relationships are essential for effective partnership working between councils, LIOs and VCFSE organisations. The top six attributes for building effective relationships for council, VCFSE organisations and LIOs alike are:

  1. fostering trust
  2. good communication
  3. an understanding of place and the importance of local relationships
  4. an understanding of strategic priorities across all organisations 
  5. an understanding of the limitations and budgetary constraints of each organisation
  6. effective processes for challenge and negotiation.

These attributes need to be present in all parties for success. The LIO has an essential role in creating working relationships that are effective for both the VCFSE sector and local authorities. First, it is essential to build relationships with the council at all levels from chief executive and council leader to frontline teams.

Second, it is necessary for the LIO to gain the trust and confidence of the VCFSE sector with clear terms of engagement so that there is clarity of expectation on what will be delivered, and the support provided. Communication must be high quality and two way so that the experience, knowledge and information from communities and VCFSE organisations can be shared with the council and other strategic partners; and information from council and other partners shared with the VCFSE sector. 

Thirdly, council officers benefit from building good relationships and gaining knowledge and understanding of the VCFSE sector and LIO, so that they know about the activities and services being delivered for residents and communities, and can appreciate the added value that VCFSE organisations bring, including working with smaller organisations.

Other factors that contribute to effective trusted partnerships include:

  • regular liaison meetings between council and LIO in which issues can be raised and resolved
  • regular opportunities for meaningful strategic engagement by VCFSE with council officers and elected members, facilitated by LIO
  • representation of VCFSE sector on strategic boards e.g. health and wellbeing – with the representative chosen by the sector
  • co-design and co-production of strategies, plans, or problem solving activities with council, LIO and VCFSE sector,  as shown in the City of Cambridge case study
  • recognition that the time to contribute to strategic engagement by VCFSE organisations and LIOs needs to be funded
  • systems and approaches to engagement with VCFSE are understood and adopted across all council directorates.

What does good practice look like?

For a council wanting to work with LIOs to engage smaller VCFSE organisations good practice could be based on this framework.

1. Build long term, high quality, trusted relationships with LIOs, and with as much of the VCFSE sector as is possible. This can be done through:

  • building trust through open and transparent communications
  • recognising that all parties have something unique and valuable to bring to the table
  • creating space for council, VCFSE sector and LIOs to meet together regularly and where constructive challenge or difficult conversations are welcomed
  • adopting a co-design / co-production process to identify shared objectives, solve local problems and deliver for communities.

2. Create a culture where participation by VCFSE sector and LIOs in strategic boards and forums is welcomed. This representation and participation benefits from being part of a continuous dialogue through working relationships between council and LIO that extend from chief executive and council leader level to on the ground development and delivery teams. 

These multi-layered relationships mean that vital information, knowledge and learning can be shared and acted on quickly, and trust is built across many frequent interactions.

3. Make use of the LIO to advise and support the council on:

  • the diversity, distribution, strengths, capacity and limitations of the VCFSE sector and what they can offer to support and deliver council priorities
  • how to work with small VCFSE organisations in practice and the outcomes that can come from this
  • partnerships and collaborations with the VCFSE, health systems and other strategic partners
  • adapting national funding schemes to local needs and where relevant enable small VCFSE organisations to participate (e.g. UK Shared Prosperity Fund)
  • enable commissioning and contracting processes to be most effective for small VCFSE organisations, through incentivising collaborative and simplifying approaches.

4. Where possible invest in infrastructure support for a thriving VCFSE sector to support leadership and advocacy, partnerships and collaborations, capacity building and support for volunteering. This investment can bring significant benefit in the outcomes achieved for residents and communities, additional social value and benefits community cohesion. 

5. Recognise that barriers to good partnership working exist and that they need to be addressed quickly and effectively through:

  • building, or where appropriate rebuilding trust
  • high quality communication
  • using co-design and co-production to identify shared activities and outcomes
  • creating space for difficult conversations to take place
  • recognising the power imbalances in relationships.

6. Co-design and co-produce suitable frameworks to ensure effective working relationships particularly in complex environments.

Case studies