50 ensures 2 THE ENVIRONMENT ILLUSTRATION 2.4 as at Chugging and the structure of the charity sector industry structure contributes to inefficiency and agreesion in the United Kingdom's charity sector. The charity sector has become controversial in the United Kingdom. The agressive fund-raising of some charities is epitomised by workers soliciting donations from shoppers on a commission basis. Such is their perceived aggression that these charity workers are known as 'chuggers', compared with the violent street-crime of 'muggers'. In 2008, there were 189,000 charities registered in England and Wales. 95 per cent having annual incomes of less than 500,000. However, about 30 per cent of all charity income is raised by the largest 20 charities, headed by Cancer Research UK [2008 income, 355 to E~390 m; 4532 mi}. According to Charity Market Monitor, in 2008. the top 300 charities averaged a 0.9 per cent increase in income, but the largest 10 managed income grth of 2.3 per cent {excluding impact of mergers}. The United Kingdom government introduced the 2006 Charities Act with the specific intention of assisting mergers between independent charities. This had followed a report of the Charity Jt'lommission, the regulator for charities in England and Wales. which had commented on the charity sector thus: 'Some people believe that there are too many charities competing for too few funds and that a significant amount of charitable resource could be saved if more charities pooled their resources and worked together . . .The majority of charities are relatively small, local organisations that rely entirely on the unpaid help of their trustees and other volunteers. They may have similar purposes to many other charities but they are all serving dif- ferent Communities. The nature of these charities suggests that there are less likely to be significant areas of overlap. . . It is the much larger. protes- sionally run, charities which, because of their size. tend to face charges of duplication, waste and over-aggressive fund-raising. While there are some clear advantages to be had from a healthy plurality of charities, which are constantly refreshed by new charities pursuing new activities, there are also big benefits of public confidence and support to be had from Showing collaborative, as opposed to over-competitive, instincts.' Local authorities in particular were frustrated by duplication and waste, as they increasingly commitF sion local charities to deliver services. With respect to small charities, local authority budgets are relatively large. Cine charity sector chief executive, Carolina Shaw, told Charity Times as she pursued more cooperation between local charities: 'Without a doubt there is increased competition when it comes to [local authority] commission. ing. ..0ur driving force has really been to try to create a more effective service for front line organisations; to offer more projects, more diverse services, more effective services. There's a huge amount [of charities} all fighting for funding. i really think that people should be looking at working more closely together.' During 2003, more than 230 charity mergers were registered with the Charity Commission. its the reces- sion began to put pressure on charitable donations throughout the sector, early 2909 saw the merger of _ two welt-established charities helping the eiderly in I the United Kingdom. Heip the Aged and Age Concern. .- The nevir charity, Age UK, has a combined income of -, around 160 million, including 4? million ayear raised '_ through fund-raising, and over 520 charity shops. = Sources: 'RS la - Collaborative working and mergers: Summary. ' htipdiwww.charitchomrnission.gov.ulo'publicatic-hslrs~a.asp; mart-11' '.' Times, "Strength in Numbers', August 200?: Charm Market Monitad 5 2009. -. Questions 1 1i'iihich of Porter's five forces are creating problems for the United Kingdom's charity sector? 2 1iilhat type of industry structure might the charity industry be moving towards? What would be the benefits and disadvantages of that structure