# ChangeUp and Futurebuilders are not yet "value for money" says NAO

- Link: https://fundraising.co.uk/2009/02/06/changeup-and-futurebuilders-are-not-yet-quotvalue-moneyquot-says-nao/
- Published: 2009-02-06T09:05:01+00:00
- Author: Howard Lake

The National Audit Office (NAO) has published a report on ChangeUp and Futurebuilders,
two programmes aimed at building capacity in the third sector. Both have achieved“
a positive impact on frontline third sector organisations” according to the NAO,
but, although they “will cost £446 million”, neither has “yet demonstrated value
for money”.

 

Both have suffered from “administrative weaknesses” and a lack of initial targets
against which the effectiveness of the programmes could be measured.

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Launched in 2004, both programmes were transferred to the responsibility of the 
Cabinet Office in 2006.

 

According to the report, both programmes have had positive results. The £231 million
ChangeUp programme “has created stronger partnerships among those organisations 
that support frontline third sector bodies”. This has helped some of these organisations
to work more efficiently, spend less time on administration, manage staff and volunteers
more effectively, and improve the service to their users.

 

[Futurebuilders](http://www.futurebuilders-england.org.uk), the experimental £215
million investment fund, has similarly enabled some organisations to improve governance,
strategies and premises and this in turn has helped some recipients of Futurebuilders
loans to win contracts to deliver public services.

 

However, the NAO identified weaknesses in programme management including delays 
in implementing [ChangeUp](http://www.capacitybuilders.org.uk) that created a rush
to spend public money quickly, with some being wasted. Outcome measures and targets
were not established so “no effective evaluation of the impact of the programme 
has taken place”.

 

Similarly, the first Futurebuilders management contract “did not focus sufficiently
on the fund’s objectives”, and some loan recipients were slow to take up and apply
the funding. Also, some organisations received “mixed messages” about whether their
loans would have to be repaid.

 

However, the NAO reports that Capacitybuilders, which has managed the programme 
since 2006, is taking action to address these problems; and the second management
contract for Futurebuilders contains targets that are “more clearly aligned with
the objectives of the programme”.

 

Tim Burr, head of the National Audit Office, said: “Frontline third sector organisations
provide important services to the general public. ChangeUp has made good headway
in improving support for these organisations while Futurebuilders loans have improved
the potential of some to win public service contracts.

 

“But basic flaws in the administration of both programmes have reduced their beneficial
impact to date. Value for money will depend on whether the steps now being taken
successfully address these problems.”

 

www.nao.org.uk

 

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