In order to help them fight poverty and social breakdown, the think tank Centre for Social Justice (CSJ) says that dormant insurance policies and pension funds worth £400m should be given to third sector organisations.
The CSJ’s report, entitled Enabling Grass-roots Charities to Tackle Poverty, published recently, recommends using the dormant funds to establish a new fund to develop new third sector ideas, support charities and fight poverty.
The report suggests that existing support for third sector organisations tends to be limited to the delivery of services, rather than helping organisations to develop and refine their practices.
It says that the fund, which would be called the UK Social Innovation Fund, would be focused on taking the most innovative ideas and developing them into commissionable public services.
Christian Guy, director of the CSJ, says in the foreword to the report: “By channelling assets that are currently sitting in dormant accounts, we can establish a war chest for social action that can help to develop and scale the most effective ideas that are being developed in communities.”
The report also highlights “cold spots” where vulnerable people struggle to access help. For example, the Cotswolds has 6.9 registered charities per 1,000 people, in contrast to Blackpool, which is the sixth most deprived area in the UK, and has only 0.8 charities per 1,000 people.
“Still we find areas of the country, often with the greatest needs, where there are fewer charities and philanthropic resources,” writes Mr Guy. “This imbalance must end.”
The team at Nicklin have extensive experience in working with charities, which means that we are able to offer expertise in all financial issues affecting this sector, including those relating to making the most of dormant assets. For more information, please contact us.