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The road ahead - he operating environment for the voluntary sector Newham funding summit 2012.ppt


									The road ahead

The operating environment for
the voluntary sector

Newham funding summit 2012

 Karl Wilding
 NCVO Policy & Research | September 2012                       1
The wider context
Demographic and economic                VCS and volunteering trends
                                        •Funding squeeze – especially
•Multiple disadvantage                  driven by reductions in
•Shift in the spatial distribution of   government expenditure
disadvantage                            •Lack of resilience for
•Further polarisation and               organisations that lose contracts
gentrification, and decreasing          or funding
social mix                              •Rising demand for services due
•Increasing needs and demand            to on-going economic downturn
for services in the context of          •Wider social issues for charity
public spending cuts                    clients and beneficiaries –
                                        poverty, access to benefits,
                                        housing, and legal advice
% of charities that had been affected by
the economic downturn, 2008-2010

                                            Source: Charity Commission
The income spectrum

   Donor      Funder    Purchaser    Consumer

    Gift       Grant    Contracts   Open Market
  Economy     Funding

     ASKING                         EARNING
The proportion of adults giving to charity and the total
annual amount donated, inflation adjusted, 2004/05 –
2010/11 (£ billions, %)

                                                    Source: NCVO/ CAF
Changing attitudes: what is the voluntary
sector for in Squeezed Britain?
The impact of spending cuts

Estimated change in government spending on the voluntary sector 2010/11 - 2015/16
(£ millions, 2010/11 prices)
                                                                      Source: NCVO estimates                           based on Office for Budget
                                                                      Responsibility (2011) tables
Grant and contract income from statutory
sources, 2000/01 – 2009/10 (£ billions)

                                             Source: NCVO/TSRC, Charity   Commission
Who gets state funding?
                                    Proportion of total income from state funding,
                                    by size (%)

          Get state   % of
          funding?    income
                      from state
Micro     8%          5%
Small     38%         21%
Medium    56%         35%
Large     69%         38%
Major     76%         41%
Total     25%         38%

                                                               Source: NCVO/TSRC, Charity                    Commission
What can you do about it?

  • You MUST be able to tell your story – and why you
    are effective
  • write better, not more, grant applications;
  • think about income diversification (and its limits);
  • think more about matching income type to beneficiary
  • and address the knotty issue of charging

  • (and for us in NCVO etc: advocacy on behalf of
    communities and make sure we get the story right)
Hidden assets and resources

 What is resource-raising?

 “the practice of raising the
 resources a charity needs to
 deliver its activities through a mix
 of financial and in-kind support.”

 Strategic resource-raising
 organisations are those which
 proactively decide which
 resources they need to raise
 money to pay for and which they
 could potentially secure in-kind.

                                        (from Beaumont C., From Fundraising to Resource-raising’ 2011)
Money is important but…

  …it is only one piece of the puzzle
                             The Militant Optimists

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