Where charity fits and why this matters.

As the Scottish Enlightenment philosophers observed, the communities we live in are made up of are defined by three distinct yet interdependent forces: government, business and civil society. Adam Fergusson’s “An essay of the history of Civil Society” marks a watershed moment in this idea’s development.

Government makes and enforces the rules. It takes many forms. For example in Scotland we are governed by the Houses of Parliament, the Scottish Parliament, our Local Authorities and a range of other regulators and organisations deriving authority from central government.

Business is the driver for economic growth. It creates wealth within the constraints set by government.

Civil Society operates in the space between the market and the state. It covers what we, as a society, choose to do to improve the lives of our communities and it is in this space that philanthropy firmly sits.

The respective strengths of each force change over time and from nation to nation.

In authoritarian countries like North Korea the business and 3rd sector pillars are almost non-existent. The State is all. In contrast with failed states, like Haiti in 2010 after the earthquake, when both government and business were destroyed all that was left was civil society and the population became wholly dependent on their own resources and international aid.

After the American war of independence the newly formed United States quickly developed a strong civil society which continues to this day. Since the first European settlers had colonised the States they had learned that they couldn’t rely on government, the church or “their superiors” to solve their problems. They had to rely on themselves. Indeed it was the wish to escape such reliance that had driven so many of the first settlers to risk crossing the Atlantic in the first place.

The story in Britain is rather different. Following on from the Reformation in the 16th Century came the decline of the monasteries and the breakdown of the pre-reformation church and  mediaeval society structure. Many of the institutions that had been responsible for charity became defunct. Responsibility for the poor passed from the Church firstly to Civil Society and then to the State which has since evolved to become the one we know today.

As the governance of Scotland is distinct, with its own devolved administration, legal system, and historically its own Calvinistic Reformation, the Scottish business environment and its civil society inevitably reflect this.

The post-war consensus of a mixed economy with the nationalisation of major industries, the establishment of the National Health Service and the creation of the modern welfare state continues to evolve and the lines between the 3 pillars are often blurred. Increasingly Government is contracting out what were regard as its universal obligations. For example care for the elderly, the rehabilitation of offenders and the provision of social housing are just 3 examples where charities are now expected to act as government contractors.  Sometimes it works to good effect, occasionally its a disaster.

Why does this matter? It matters because the balance between the 3 pillars is constantly changing and charities need to adapt to reflect those changes if they are to remain relevant.

We all know that pressure groups can highlight the threats of the climate emergency but change will only happen through the efforts of Governments and business. The same is true in respect of nearly all major shifts. The stars need to align.

When philanthropists are looking at third sector organisations to partner with they should make sure those organisations understand the dynamic they work in and the need to work with, not against government and business.