�ʶ�����

This Scheme is made under Section 74 of the Government of Wales Act 2006 which requires �ʶ����� Ministers to make a scheme setting out how they propose, in the exercise of their functions, to promote the interests of relevant voluntary organisations. Section 74 is set out below. This Scheme uses the term “third sector” instead of voluntary sector and the term “third sector scheme” instead of voluntary sector scheme.

Section 74

1. The �ʶ����� Ministers must make a scheme (“the voluntary sector scheme”) setting out how they propose, in the exercise of their functions, to promote the interests of relevant voluntary organisations.
2. In this section “relevant voluntary organisations’’ means bodies (other than local authorities or other public bodies) whose activities:
   1. are carried on otherwise than for profit, and
   2. directly or indirectly benefit the whole or any part of Wales (whether or not they also benefit any other area).
3. In determining the provision to be included in the voluntary sector scheme, the �ʶ����� Ministers must consider how they intend to exercise such of their functions as relate to matters affecting, or of concern to, relevant voluntary organisations.
4. The voluntary sector scheme must specify:
   1. how the �ʶ����� Ministers propose to provide assistance to relevant voluntary organisations (whether by grants, loans, guarantees or any other means),
   2. how the �ʶ����� Ministers propose to monitor the use made of any assistance provided by them to relevant voluntary organisations, and
   3. how the �ʶ����� Ministers propose to consult relevant voluntary organisations about the exercise of such of their functions as relate to matters affecting, or of concern to, such organisations
5. The �ʶ����� Ministers:
   1. must keep the voluntary sector scheme under review, and
   2. may from time to time remake or revise it.
6. Before making, remaking or revising the voluntary sector scheme, the �ʶ����� Ministers must consult such relevant voluntary organisations as they consider appropriate.
7. The �ʶ����� Ministers must publish the voluntary sector scheme when they make it and whenever they remake it; and, if they revise the scheme without remaking it, they must publish either the revisions or the scheme as revised (as they consider appropriate).
8. If the �ʶ����� Ministers publish a scheme or revisions under subsection (7) they must lay a copy of the scheme or revisions before the Assembly.
9. After each financial year the �ʶ����� Ministers must:
   1. publish a report of how the proposals set out in the voluntary sector scheme were implemented in that financial year, and
   2. lay a copy of the report before the Assembly.

This legislation requires �ʶ����� Ministers to make a Scheme. The Third Sector Scheme is a statement of �ʶ����� Ministers’ intent in taking forward their relationship with the Third Sector and the 2006 Act does not provide that it has any binding effect. There may be circumstances where the intentions cannot be met.

The Scheme was last formally revised in 2004. Following a �ʶ�����consultation; Continuity and Change: Refreshing the Relationship between �ʶ�����and the Third Sector in Wales, (May-August 2013); this Scheme and its Annex have been revised to bring the policy framework that underpins this relationship up to date.

�ʶ����� Ministers expect all Cabinet members, Deputy Ministers and officials to promote the interests of the Third Sector in their work and decision making and will:

• maintain arrangements for meaningful engagement and consultation with the Third Sector (Chapter 3)
• maintain arrangements for supporting communities and volunteers (Chapter 4)
• maintain arrangements for supporting structures that allow the Third Sector to flourish (Chapter 5)
• seek to adhere to the Code of Practice for Funding the Third Sector contained as an Annex to this Scheme
   

The �ʶ�����recognises that its Third Sector policy framework must include measures for assistance for the sector as set out in sub-section (4) (a) of the legislation above. The level of financial resources available will determine the extent of such assistance which is provided by way of grants etc., and funds will need to be targeted according to �ʶ�����priorities. The �ʶ�����also recognises its role in seeking to ensure that the Third Sector has fair and reasonable access to public funds.

Across the range of its functions, the �ʶ�����is committed to establishing and maintaining procedures to ensure accepted best practice in the administration of its grant schemes and those of agencies, which administer funds on its behalf.

The �ʶ�����will maintain, use and promote the Code of Practice for Funding the Third Sector at Annex A, which, sets out the key principles that will underpin �ʶ�����funding for the Third Sector as well as what the Government expects from the Third Sector in return.

The Code of Practice for Funding the Third Sector and the terms and conditions issued at the time a grant is made provide the mechanism by which the �ʶ�����will monitor the use made of any assistance provided by it to relevant organisations.

The Code of Practice for Funding the Third Sector is monitored by the Funding and Compliance Sub-Committee of the Third Sector Partnership Council.

The Code of Practice for Funding the Third Sector is an integral part of the Scheme. Accordingly, any re-making or revision of the Code must be done in accordance with the statutory requirements of section 74.

Section 74 of the Government of Wales Act 2006 (as set out in Chapter one above) defines ‘relevant voluntary organisations’ as:

…bodies other than local authorities (or other public bodies) whose activities:

• are carried on otherwise than for profit, and
• directly or indirectly benefit the whole or any part of Wales (whether or not they also benefit any other area

‘The Third Sector’ is used in this Scheme and by the �ʶ�����as an inclusive and overarching description of a very diverse range of organisations that share a set of values and characteristics. It is widely accepted that Third Sector organisations are:

• independent, non-governmental bodies
• established voluntarily by people who choose to organise themselves
• ‘value-driven’ and motivated by social, cultural or environmental objectives, rather than simply to make a profit
• committed to reinvesting their surpluses to further their social aims and for the benefit of people and communities in Wales

Even with this common values-based approach, there is a broad range of organisations which make up the fabric of the Third Sector including community associations, self-help groups, voluntary organisations, charities, faith-based organisations, social enterprises, community businesses, housing associations, development trusts, co-operatives and mutual organisations.

The Wales Council for Voluntary Action’s 2013 Almanac shows that the Third Sector in Wales encompasses:

• 33,000 organisations
• 230,000 trustees
• 1.13m volunteers and people helping out in their community
• 51,000 employees

WCVA’s research demonstrates that the Third Sector had an income of £1.6 billion in 2013 and was supported by 2.4% of the budget of the �ʶ����� Government.

The structures, forms and legal identities of Third Sector organisations also vary considerably. They include unincorporated organisations, registered and unregistered charities, companies limited by guarantee (which may also be registered charities), and community interest companies, charitable incorporated organisations and Industrial and Provident Societies.

Whilst individual organisations may call themselves voluntary organisations, community groups or social enterprises, the distinctions between such categories are often blurred and there remains a strong argument for viewing them collectively as a distinctive Third Sector that makes a hugely important contribution to �ʶ����� life.