Submission to the International Development Committee

Harnessing the Power of Small International Development Charities

Introduction

The Small International Development Charities Network (SIDCN) represents over 2,400 UK-based small charities advancing sustainable development and social justice globally. These organisations, part of over 10,000 registered small charities in the UK, provide critical, community-driven solutions to some of the world’s most pressing challenges. Despite their pivotal role, small charities face systemic funding constraints and insufficient governmental recognition.

We urge the International Development Committee to investigate how the Government can better support, fund and harness the power of small charities for vital international development work that is more inclusive and, above all, more effective.

Why Should the Committee Examine this Subject?

Small charities play an indispensable role in grassroots international development, leveraging local knowledge, deep community engagement and cost-effective operations to deliver high-impact outcomes in the Government’s mission to eradicate extreme poverty and improve development.

However, studies have revealed significant funding disparities in the sector, with two-thirds of total sector income directed to approximately 25 large organisations (with annual incomes exceeding £40M) and the rest distributed among smaller charities (below £40M annual income). These funding challenges limit the capacity of small charities to scale effective and innovative approaches to international development.

Additionally, Official Development Assistance (ODA) has declined in recent years and may revert to 0.5% of Gross National Income (GNI) in 2024. While we commend the new Government’s pledge eventually to restore the UK aid budget to 0.7% of GNI, we urge the Committee to hold the Government accountable for making this commitment meaningful. We expect wide support for directing ODA through small charities, which, according to the Charity Commission, enjoy a stable and high level of trust.

Why Now?

The 2023 White Paper on International Development recognised the UK’s vibrant civil society sector and committed to reinvigorate partnerships with Civil Society Organisations (CSOs). However, it lacked specifics on funding and timelines. This omission risks sidelining small charities critical to addressing global challenges such as climate change, inequality, and health crises.

A focused inquiry can bridge these gaps, ensuring that tailored, long-term financing and capacity-strengthening support for small charities are realised.

Why is Parliamentary Scrutiny Needed?

Parliamentary scrutiny can promote transparency and inclusivity in funding, addressing systemic barriers faced by small charities to empower them to advance the Government’s efforts to eradicate extreme poverty and improve development.

This inquiry would enhance the UK’s reputation as a leader in community-driven development and align policy and spending with the Sustainable Development Goals (SDGs).

Recommended Policy Actions to Investigate

1. Increase and Ring-Fence Funding: Expand funding streams like the Small Charities Challenge Fund with clearer timelines and sufficient resources to meet demand.
2. Operationalise Commitments: Develop time-bound frameworks to deliver tailored support for small CSOs.
3. Simplify Processes: Streamline grant applications and reduce administrative burdens to ensure accessibility.
4. Strengthen Collaboration: Foster partnerships between small charities, larger organisations and government bodies to amplify impact.

Conclusion

The Committee’s inquiry would hold the Government accountable for ODA commitments and previous policy pledges while promoting the inclusion of small charities in UK development policy.

Additional Information about SIDCN for the Committee

1. Have you ever engaged with Parliament before (e.g. made a submission to a select committee)?

Yes. SIDCN made a submission to the FCDO & Civil Societies Inquiry in 2024.

2. Do you have personal or field experience related to international development issues?

Yes. The members of SIDCN have extensive experience in international development.

3. If you are invited to pitch your idea to the Committee, would you be able to travel to London and back within the same day?

Yes. Representatives of SIDCN will be able to attend.

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