...Charities are outmoded institutions that have no contribution to make to modern society. What is needed are social enterprises. Discuss. Introduction In this essay I will start by looking at definitions of both “Charities” and “Social Enterprises” before going on to look at a short history of the development of the voluntary sector in the UK. I will then move on to examine the arguments suggesting that charities have become outmoded and the perceived benefits of social enterprises as an alternative approach. In the final section I attempt to critically assess these arguments and to draw some conclusions. Some definitions Charities are essentially organisations established to provide some form of public good, with most of their funding being generated through donations from individuals, companies or government departments. In the UK a charity must be registered with the Charity Commission and the purposes of the charity must meet the “public benefit requirement”. Its purposes will be defined in its governing document or constitution, and ALL of its purposes must be exclusively charitable. This is the main distinction between charities and social enterprises. This latter term is used to describe a wide range of organisations which are run as businesses (and often constituted as companies rather than charities) but don’t exist purely to make money for their stakeholders. Instead they have other goals such as to benefit the community, the environment or any other social interest...
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...SOCIAL INNOVATOR SERIES: WAYS TO DESIGN, DEVELOP AND GROW SOCIAL INNOVATION DANGER AND OPPORTUNITY CRISIS AND THE NEW SOCIAL ECONOMY Robin Murray 2 TITLE ACKNOWLEDGEMENTS This essay was written while the author was a Visiting Fellow at NESTA and forms part of a series of publications on methods of social innovation led by the Young Foundation with the support of NESTA. I would like to thank NESTA for their support, and in particular Dr Michael Harris, as well as my colleagues at the Young Foundation, Julie Caulier-Grice and Geoff Mulgan, all of whom have given valuable comments on the text. Published September 2009 CONTENTS 1 CONTENTS 1. The argument 2 5 9 23 39 52 54 55 2. The context of crisis 3. The emerging economic landscape 4. Can the new social economy respond? 5. Social innovation and the crisis of policy Bibliography Weblinks Endnotes 2 DANGER AND OPPORTUNITY CRISIS AND THE NEW SOCIAL ECONOMY 1 THE ARGUMENT The rise of the new social economy This pamphlet argues that the early years of the 21st century are witnessing the emergence of a new kind of economy that has profound implications for the future of public services as well as for the daily life of citizens. This emerging economy can be seen in many fields, including the environment, care, education, welfare, food and energy. It combines some old elements and many new ones. I describe it as a ‘social economy’ because it melds features...
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