Free market economists for charities

A new organisation has been established to engage and inform charities and economists about the worth of economic analysis to third sector organisations.

While many charities have an increased need in the current economic climate, and more professionals are volunteering, Pro Bono Economics (PBE) hopes to address a long term failure to provide charities with support for economic analysis, and to broker volunteers to provide these services.

“Even at the height of the boom there was a significant need for the services that Pro Bono Economics can broker,” said Lucy Heady, a trustee of PBE.

As well as informing economists about the need that charities have for their skill-sets, PBE will provide a mechanism by which they can contribute to a well functioning charitable sector. PBE also aims to have wider benefits:

“If you are a Whitehall economist, it will help your career as the Treasury wants people who have had experience elsewhere,” said Martin Brookes, co-founder and trustee of PBE. “Also, the government wants to use charities more to deliver public services and economists with experience of working with charities will enable more informed policy decisions.”

The Office of the Third Sector (OTS) is currently working to address a lack of measurement and evidence of charities’ work, and has published a new guide to social return on investment. PBE’s approach is intended to complement government and other third sector research.

The charities supported by PBE must show the ability and intention to engage with and apply the results of the analysis provided.  PBE will work to monitor the results of engagement with charities over time.

“We want to see the impact of the work down the road otherwise the interest of economists in offering their services won’t last,” said Brookes.

Initial pilots have already begun and the trustees have applied for charitable status. PBE was co-founded by Martin Brookes, chief executive of New Philanthropy Capital (NPC), and Andy Haldane, executive director of financial stability at the Bank of England.