An IT firm set up to improve support to charities and small medium sized businesses and ensure they are not being exploited by providers, has been singled out for praise in a study into the value of the impact economy to the UK.

Fluid IT is one of the highest scoring impact led businesses in the UK and is part of a wider network of charities, socially minded businesses and social enterprises that are worth a total of £428bn to the economy, according to the study by think tank NPC.

Its report details that the firm was “born out of frustration” after “seeing charities in East London being exploited by IT providers – charged thousands of pounds for services they didn’t need”.

Its founder David Schluter “turned his anger into action and built an impact-led business designed to offer charities high quality IT assistance built upon the principles of fairness, transparency, and generosity”, says NPC.

NPC also points out that in its infancy the firm hired a recovering addict through its local rehabilitation programme, who trained through Fluid IT and now works for a local aurthority.

“I believe business can be a vehicle for transformation,” said Schluter, who is quoted in the report.

“Work isn’t just about revenue, it can be the most amazing opportunity to rewrite someone’s identity and giving them hope and a purpose.”

NPC also praised Fluid’s work improving practice elsewhere.

“When a client’s insurer prohibited the use of ex-offenders, Fluid didn’t hide the fact that they employed people with criminal records,” says the NPC report.

“Instead, they raised the issue openly. The client’s desire to work with Fluid IT was so strong, they contacted their insurers and were able to find a way forwards. This loyalty and willingness to collaborate is a unique form of social capital generated as a result of Fluid’s focus on their values and mission.”

Value of the Impact economy

The total value of the impact economy includes £323bn of self-regulated work, where businesses, mutual insurers and friendly services work for the public good but are not legally required to do so. The other £105bn is through the work of the regulated impact economy including charities, universities and housing associations which are set up legally to support society

The total value of the impact economy is now 15% of UK GDP, according to NPC.

NPC chief executive Jonathan Simmons said: “The term ‘impact economy’ represents a shift in mindset: from a disparate set of sectors, often at odds with one another, to a coherent system bound by shared aspirations.

“It is a simple but powerful idea built around intentionality: the intention to have a positive impact and to help solve the challenges we face, together.”

The report has been published two months after the government launched its Office of the Impact Economy to improve philanthropy and social investment. This new unit is housed in the Cabinet Office with Chief Secretary to the Prime Minister Darren Jones as its ministerial lead.

Setting up the Office for the Impact Economy was among recommendations made by a Social Impact Investment Advisory Group earlier this year involving the Treasury and the Department for Culture, Media and Sport.

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