a code of good pr
Compact on Relations between
Government and the Voluntary
and Community Sector in England
d the Voluntary and Community Sector in England
ernment and the Voluntary Se
ood practice a code of good practice

Presented to Parliament
by the Secretary of State for the Home Department
By Command of Her Majesty
November 1998
Cm 4100
Compact on Relations between
Government and the Voluntary and
Community Sector in England

Message from the Prime Minister
This Compact between Government and the voluntary and community
sector provides a framework which will help guide our relationship at every
level. It recognises that Government and the sector fulfil complementary
roles in the development and delivery of public policy and services, and that
the Government has a role in promoting voluntary and community activity in
all areas of our national life.
The work of voluntary and community organisations is central to the
Government’s mission to make this the Giving Age. They enable individuals
to contribute to the development of their communities. By so doing, they
promote citizenship, help to re-establish a sense of community and make a
crucial contribution to our shared aim of a just and inclusive society. This
Compact will strengthen the relationship between Government and the
voluntary and community sector and is a document of both practical and
symbolic importance.
The Rt. Hon. Tony Blair MP

Compact on Relations between Government and the Voluntary and
Community Sector in England
Joint foreword by the Home Secretary and Sir Kenneth Stowe, Chair of the English
voluntary and community sector’s Working Group on Government Relations
The voluntary and community sector has a vital role in society as the
nation’s ‘third sector’, working alongside the state and the market. Through
its engagement of volunteers, the services it provides and the support it
gives to individuals and groups, its contribution to community and civil life
is immense, invaluable and irreplaceable.
This Compact is aimed at creating a new approach to partnership between
Government and the voluntary and community sector. It provides a
framework to enable relations to be carried out differently and better than
before. Government and voluntary and community organisations share
many aspirations – the pursuit of inclusiveness, dedication to public life,
and support for the development of healthy communities. The Compact is a
starting point for developing our partnership, based on shared values and
mutual respect.
The voluntary and community sector’s Working Group on Government
Relations carried out a major consultation exercise to determine the
sector’s views on developing the Compact. We are delighted that the
Compact embodies the key considerations which emerged and we should
like to thank the many thousands of voluntary and community organisations
which participated in the process of consultation. We hope that for them
and the many beneficiaries and users of the services of the voluntary and
community sector the Compact will lead to more effective and fruitful
relations with Government.
We shall now carry it forward – developing codes of good practice in key
areas and working closely with the Local Government Association and others
to encourage the adoption of its principles and undertakings at local level.
We look forward to making substantial progress when we make our first
annual report to Parliament in 1999.
The Rt. Hon. Jack Straw MP Sir Kenneth Stowe

Status of the Compact
1The Compact in England has been drawn up in partnership following
extensive consultation with the voluntary and community sector and
Government Departments. The Compact is deliberately not exhaustive
but, recognising the diversity of the voluntary and community sector and
its activities, should be seen as a general framework and an enabling
mechanism to enhance the relationship between Government and the
sector.
2The Compact is a memorandum concerning relations between the
Government and the voluntary and community sector. It is not a legally
binding document. Its authority is derived from its endorsement by
Government and by the voluntary and community sector itself through
its consultation process. The Compact will initially apply to central
Government Departments, including Government Offices for the Regions,
and ‘Next Steps’ Executive Agencies (whilst applying in principle to all
‘Next Steps’ Executive Agencies, in practice the Compact will only have
effect where those agencies have a relationship with the voluntary and
community sector). The Compact will apply to the range of organisations
in the voluntary and community sector. Annex A describes how the
Compact was developed.
3Compacts have been developed in other parts of the United Kingdom. As
part of the implementation process, guidance will be prepared to
address the issues which arise under the Compact in respect of those
Government Departments and ‘Next Steps’ Executive Agencies which
have responsibilities in more than one part of the United Kingdom.
Shared vision
4The Compact arises out of the Deakin Commission Report on theFuture
of the Voluntary Sectorand the policy document Building the Future
Together, prepared by the Government when in Opposition. Both
concluded that Government and the voluntary and community sector
have a number of complementary functions and shared values and that
a Compact to further their understanding and develop their relationship
would be highly desirable. The Compact is an expression of the
commitment of Government and the voluntary and community sector to
work in partnership for the betterment of society and to nurture and
support voluntary and community activity. As part of this process, the
Compact sets out the key principles and undertakings which should
underpin the relationship between Government and the voluntary and
community sector in England.

5The underlying philosophy of the Compact is that voluntary and
community activity is fundamental to the development of a democratic,
socially inclusive society. Voluntary and community groups, as
independent, not-for-profit organisations, bring distinctive value to
society and fulfil a role that is distinct from both the state and the
market. They enable individuals to contribute to public life and the
development of their communities by providing the opportunity for
voluntary action. In doing so they engage the skills, interests, beliefs and
values of individuals and groups. The Government and the voluntary and
community sector recognise and value the vital contribution of
volunteers in our society, and the important role of voluntary
organisations in helping them to make that contribution.
6Voluntary and community organisations make a major and literally
incalculable contribution to the development of society and to the
social, cultural, economic and political life of the nation. They act as
pathfinders for the involvement of users in the design and delivery of
services and often act as advocates for those who otherwise have no
voice. In doing so they promote both equality and diversity.
They help to alleviate poverty, improve the quality of life and involve the
socially excluded. The voluntary and community sector also makes an
important direct economic contribution to the nation.
7The Compact recognises that these attributes are a major benefit to
society and that Government can play a positive role both in promoting
volunteering and in supporting the work of voluntary and community
organisations. The scope and nature of activity by voluntary and
community organisations is such that whenever Government legislates
or regulates it can have an impact on their work, positive or negative.
The Compact will help to make that impact positive.
Shared principles
8The shared principles which underpin the Compact are set out below.
8.1Voluntary action is an essential component of democratic society.
8.2An independent and diverse voluntary and community sector is
fundamental to the well-being of society.
8.3In the development and delivery of public policy and services, the
Government and the voluntary and community sector have distinct but
complementary roles.

8.4There is added value in working in partnership towards common aims
and objectives. Meaningful consultation builds relationships, improves
policy development and enhances the design and delivery of services
and programmes.
8.5The Government and the voluntary and community sector have different
forms of accountability and are answerable to a different range of
stakeholders. But common to both is the need for integrity, objectivity,
accountability, openness, honesty and leadership.
8.6Voluntary and community organisations are entitled to campaign within
the law in order to advance their aims.
8.7The Government plays a significant role, among other things, as a funder
of some voluntary and community organisations. Funding can be an
important element of the relationship between Government and the
voluntary and community sector.
8.8Both Government and the voluntary and community sector acknowledge
the importance of promoting equality of opportunity for all people,
regardless of race, age, disability, gender, sexual orientation or religion.
Undertakings by Government
9The undertakings by Government are set out below.
Independence
9.1To recognise and support the independence of the sector, including its
right within the law, to campaign, to comment on Government policy,
and to challenge that policy, irrespective of any funding relationship that
might exist, and to determine and manage its own affairs.
Funding
9.2To take account of the recommendations of the Better Regulation Task
Force report on Access to Government Funding for the Voluntary Sector
(which referred to the need for greater proportionality, targeting,
consistency and transparency in Government funding frameworks) and
to pay particular regard to the concept of strategic funding, ensuring the
continued capacity of voluntary and community organisations to respond
to Government initiatives.

9.3To develop in consultation with the sector a code of good practice to
address principles of good funding for Government Departments. This
will promote:
(a)the allocation of resources against clear and consistent criteria,
including value for money;
(b)funding policies which take account of the objectives of voluntary
and community organisations and their need to operate efficiently
and effectively;
(c)
common, transparent arrangements for agreeing and evaluating
objectives, performance indicators and their associated targets,
facilitating prompt payment, reviewing financial support, consulting
upon changes to the funding position, and informing voluntary and
community organisations about future funding as early as possible,
normally before the end of the current grant period; and
(d)the value of long-term, multi-year funding, where appropriate, to
assist longer term planning and stability.
9.4To recognise the importance of infrastructure to the voluntary and
community sector and volunteering and, where appropriate, to support
its development at national, regional and local level.
Policy development and consultation
9.5To appraise new policies and procedures, particularly at the
developmental stage, so as to identify as far as possible implications for
the sector.
9.6Subject to considerations of urgency, sensitivity or confidentiality (for
example, in the preparation of advice for Ministers) to consult the sector
on issues that are likely to affect it, particularly where Government is
proposing new roles and responsibilities for the sector, for example, in
the delivery of statutory services. Such consultation should be timely
and allow reasonable timescales for response, taking into account the
need of organisations to consult their users, beneficiaries and
stakeholders.
9.7To take account positively of the specific needs, interests and
contributions of those parts of the sector which represent women,
minority groups and the socially excluded.

9.8To respect the confidentiality of information provided by the sector,
within the constraints of the law and the proper performance of public
duties, when given access to it on that basis.
9.9To develop jointly with the sector a code of good practice covering
consultation, policy appraisal and implementation. This will draw on
central guidance on impact assessment and excellence in consultation
developed by the Cabinet Office.
Better Government
9.10To promote effective working relationships, consistency of approach and
good practice between Government and the sector, particularly where
cross-Departmental issues are concerned.
9.11To adhere to the principles of open government (which seeks to ensure
that whenever possible decisions and findings are made public) and
good regulation.
9.12To review the operation of the Compact annually in conjunction with
the sector.
9.13To promote the adoption of the Compact by other public bodies.

Undertakings by the voluntary and community sector
10The undertakings by the voluntary and community sector are set out
below.
Funding and accountability
10.1To maintain high standards of governance and conduct and meet
reporting and accountability obligations to funders and users. Where
applicable, to observe the accounting framework for charities.
10.2To respect and be accountable to the law, and in the case of charities
observe the appropriate guidance from the Charity Commission,
including that on political activities and campaigning.
10.3To develop quality standards appropriate to the organisation.
Policy development and consultation
10.4To ensure that service users, volunteers, members and supporters are
informed and consulted, where appropriate, about activities and policy
positions when presenting a case to Government or responding to
Government consultations, and to communicate accurately the views put
to them in the course of such representations.
10.5To respect the confidentiality of Government information, when given
access to it on that basis.
Good practice
10.6To promote effective working relationships with Government, other
agencies and across the voluntary and community sector.
10.7To involve users, wherever possible, in the development and
management of activities and services.
10.8To put in place policies for promoting best practice and equality of
opportunity in activities, employment, involvement of volunteers and
service provision.
10.9To review the operation of the Compact annually in conjunction with the
Government.

Issues relating to community groups and Black and Minority Ethnic
organisations
11Although the principles and undertakings contained in the Compact
apply across the voluntary and community sector, particular
consideration needs to be given to the specific needs, interests and
contribution of community groups and Black and Minority Ethnic
voluntary and community organisations.
12Community groups,as associations of people who come together to
pursue a common cause or interest, often on a mutual basis, are usually
run entirely by volunteers for people like themselves. If they have a
relationship with Government for the most part it will be with local rather
than central Government. However, they may well be affected, directly or
indirectly, by Government legislation, regulation and changes in social
policy. It is important that the distinctive needs and interests of
community groups are taken into account as their perspective and
concerns may differ from those of other voluntary organisations. A code
of good practice will be developed to facilitate and reflect this.
13Despite their work with a diverse range of groups and communities,
many Black and Minority Ethnic voluntary and community
organisationsfeel outside the traditional structures of the voluntary and
community sector. The Compact provides a framework for ensuring that
support for, and involvement of, these organisations are mainstream
issues for both Government and the voluntary and community sector. In
particular, resources need to be targeted at Black and Minority Ethnic
infrastructure organisations, whose aim is to increase the effectiveness
of the Black and Minority Ethnic voluntary and community organisations
at national, regional and local level. Equally, steps will need to be taken
by both Government and the voluntary and community sector to ensure
that Black and Minority Ethnic organisations have the opportunity to be
directly involved in partnerships, consultation and decision making. This
will help these organisations to develop and realise their potential. These
concerns will be addressed through a specific code of good practice
which will reflect the distinctive needs and circumstances of Black and
Minority Ethnic voluntary and community organisations.
Resolution of disagreements
14
The Compact sets out a general framework for enhancing the
relationship between Government and the voluntary and community
sector. As far as possible disagreements over the application of that

framework should be resolved between the parties. To assist this
process, where both parties agree, mediation may be a useful way to
try to reach agreement, including seeking the view of a mediator.
Where behaviour which contravenes this framework constitutes
maladministration, a complaint may be brought to the Parliamentary
Commissioner for Administration in the usual way. The Government
will, in the light of experience, consider whether there is a need to
strengthen the complaints and redress process in relation to the
Compact.
Taking the Compact forward
15The Compact, as a framework document, is a starting point not a
conclusion. The Government and the voluntary and community sector
are committed to working together to develop its application and
effectiveness. As part of that process, codes of good practice will be
prepared in the areas of funding, consultation and policy appraisal,
volunteering, community groups, including those which are faith based,
and Black and Minority Ethnic organisations.
16As part of the process of making the Compact work, there will be an
annual meeting between the Government and representatives of the
voluntary and community sector to review the operation of the Compact
and its development. The report of that meeting will be published and
placed in the Library of the Houses of Parliament.
17As noted in paragraph 2, the Compact will initially apply to central
Government Departments, including Government Offices for the Regions,
and ‘Next Steps’ Executive Agencies. The Government intends to
encourage actively its extension to other public bodies, for example,
Non-Departmental Public Bodies, and to local government, who will be
invited to adopt and adapt the Compact to suit their relationship with the
voluntary and community sector.

Building the Compact
1The impetus for the Compact stems from the recommendations of the
Deakin Commission Report on theFuture of the Voluntary Sectorand from
the policy document Building the Future Together, published by the
Government when in Opposition. The Deakin Commission concluded that
Government should recognise the legitimacy of the voluntary and
community sector’s diverse roles and its own responsibility to promote a
healthy sector. It proposed a ‘concordat’ drawn up between
representatives of Government and the sector, laying down basic
principles for future relations. Building the Future Togetherconcluded that
a Compact, underpinned by a set of principles, was necessary as the
basis for a partnership between Government and the sector.
2A Ministerial Group chaired by a Home Office Minister will oversee the
implementation of the Compact within Government. The following
Departments are represented on the group: the Home Office,
Department for Culture, Media and Sport, Department for Education and
Employment, Department of the Environment, Transport and the
Regions, Department of Health, Department of Social Security, Scottish
Office, Welsh Office and Northern Ireland Office. The Charity Commission
has observer status. The aim of the Group is to oversee and monitor the
implementation of the Compact; encourage its adoption by other public
agencies; promote consistency within Government Departments on
voluntary, volunteering and community issues; and promote good
communication between the Government and the voluntary and
community sector.
3A voluntary and community sector Working Group on Government
Relations was set up to consider ways of enhancing relations between
the sector and Government in England. It is comprised of representatives
from leading voluntary and community sector umbrella bodies, including
representatives from community groups and organisations, volunteering
organisations, Councils for Voluntary Service, the National Council for
Voluntary Organisations and Black and Minority Ethnic organisations.
It is chaired by Sir Kenneth Stowe, Trustee of the Carnegie UK Trust.
4The aim of the voluntary and community sector’s Working Group was to
examine in detail the nature of the Compact, to consult with other
voluntary and community organisations over its proposed content and to
liaise with Government. A Reference Group was also set up, with
membership drawn from 65 voluntary organisations, to act as a
sounding board to the activities of the Working Group before and during
discussion with Government. The feedback from the Reference Group Annex A

was used to prepare a draft consultative document which was then
made widely available to the voluntary and community sector for
consultation, backed up by a series of seminars and consultation events
throughout England. The consultation process was seen by the Working
Group as crucial to its standing and acceptability.
5The consultative document was circulated widely across the voluntary
and community sector for comment and, as part of a twin track process
to develop the Compact, the Government also carried out its own
consultation across Departments. The structure and content of the
consultative document formed the basis of the Compact drawn up
between Government and the voluntary and community sector.
Specific consultation
6The number of community groups is estimated to run into the hundreds
of thousands. They include include membership bodies where members
of the community are able to offer their services to others, campaigning
bodies, self-help, leisure and arts groups. The Community Sector
Coalitioncarried out a specific consultation among representatives of
community groupsand their national bodies which showed that these
groups, while being diffuse, have a particular importance to an
independent, democratic and free society. While seeing many areas of
common interest with the traditional voluntary sector the consultation
identified many areas of divergence due to the different priorities,
organisation and ethos of community groups.
7The consultation showed that although much of the work of community
groups is at a local level, decisions at a national level can often have an
impact on the environment within which community groups work. In
particular, it was felt that appropriate procedures and consultation
processes, issues of proportionality and capacity building, and the lay
management nature of community organisations necessitated specific
understanding and recognition within the Compact, and the need for a
specific code of good practice. The consultation process revealed that
many community groups felt that their particular nature and
circumstances required recognition as a separate sector.
8A specific consultation process was also carried out by Sia,the national
development agency for Black voluntary and community organisations.
This showed that the black voluntary and community sector is made up
of a diverse range of organisations and groups which provide various
services and support networks. It was felt, however, that these
organisations had encountered a number of barriers to their

development and had been hampered by a lack of recognition of their
role and potential. Inadequate funding and a perception that other
organisations excluded Black voluntary and community organisations
from partnerships were of particular concern. Some felt that their
aspirations would be best met through a separate Compact between
Government and Black voluntary and community organisations. They
were keen to be fully engaged in consultation processes with
Government and for the Compact to take account of their distinctive
needs and circumstances. The findings of the consultation were
applicable to the development of the Compact at both national and local
level. A report of the consultation is available from Sia(Winchester
House, 9 Cranmer Road, London SW9 6EJ).

This publication and further information
is available on the Compact website at
www.thecompact.org.uk
or at
www.homeoffice.gsi.gov.uk/comrace/active/compact/publications.html
Or for hard copies of this or other publications, please contact:
Compact Working Group
c/o NCVO
Regents Wharf
8 All Saints Street
London N1 9RL
Tel: 0207 520 2454
E-mail: compact@ncvo-vol.org.uk
Active Community Directorate,
Home Office
3rd Floor
Allington Towers
19 Allington Street
London SW1E 5EB
Tel: 0207 035 5397
E-mail: public_enquiry.acu@homeoffice.gsi.gov.uk

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