Shared services in Scottish charity sector are boon to Annodata

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Annodata says persistent budget cuts and more competition for donations have given rise to new forms of collaboration in the back-office

Managed service provider Annodata has signed up its 400th customer in the Scottish charity sector, through its collaboration with the Scottish Council for Voluntary Organisations (SCVO).

Annodata says persistent budget cuts and more competition for donations have given rise to new forms of collaboration in the back-office, an area it specialises in.

Consulting firm PwC has conducted an extensive review of charities following the economic downturn in 2008. The latest 2015 research report shows that 34 percent of charities collaborate in some way on service delivery, while five percent report sharing back office functions.

Annodata says this growing trend towards greater collaboration between not-for-profit organisations and the sharing of back-office functions “holds the key” towards creating a “more efficient and sustainable Third Sector”, and should therefore be encouraged.

Joe Doyle of AnnodataCommenting on the opportunity, Joe Doyle (pictured), marketing director at Annodata, said: “Our partnership with the SCVO means that we have seen first hand some of the challenges that the Third Sector has had to adapt to in recent years. Reductions in public sector funding, squeezed income from donors, and an increased demand for their services have radically changed the landscape in which they operate and has necessitated the development of new operational structures.”

The SCVO has played a critical role supporting Scottish charities by providing services including litigation, payroll services, procurement, HR and consulting to improve charity performance. Its partnership with Annodata is a key relationship to improve efficiency in managed services across all types of charities.

John Ferguson, director of development at the SCVO, said: “Establishing preferred suppliers is an important part of our work to support organisational change in the charity sector, so that they can focus on what they do best – whether that’s supporting the most vulnerable people in communities across the country or conducting cutting-edge research. Increasing the use of shared services in the charity sector in Scotland is an important objective for us.”