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Transcript of Civil society resources
Civil Society financial resources in 2010
Karl Wilding, Head of Research National Council for Voluntary Organisations
Contact: [email protected] or www.twitter.com/karlwilding
Evidence|Resources|Policy|Opinion|Signposting: www.ncvo-vol.org.uk
Current context
The growth in charity numbers, 1960-present
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Tota
l num
ber
of c
hari
ties
-15,000
-10,000
-5,000
0
5,000
10,000
15,000
20,000
Regi
stra
tion
s/Re
mov
als
per
year
Registrations Removals Number of Charities
Income: £264m
91,000 micro organisations
4,566 major organisations
Income: £26.9 billion
75,000 small/ medium organisations
Income: £8.4 billion Income is heavily
skewed to the few…
How to grow by £10bn: donors + delivery£
billi
ons
Statutory income = £12.8 billion
8
30
55
6873
22
5
22
3538 37 36
0
10
20
30
40
50
60
70
80
Micro Small Medium Large Major Total
Proportion of organisationsthat receive state funding(%)% statutory income of totalincome
70%
51%
51%
50%
50%
45%
43%
40%
25%
24%
16%
15%
7%
3%
10%
34%
22%
32%
23%
14%
41%
25%
39%
51%
58%
62%
50%
41%
4%
6%
11%
7%
10%
18%
5%
19%
15%
18%
9%
8%
11%
6%
5%
5%
5%
6%
10%
13%
6%
5%
9%
4%
12%
13%
24%
38%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Employment and Training
Education
Law and Advocacy
Social Services
Housing
Umbrella bodies
Health
Development
Culture and Recreation
International
Environment
Religion
Research
Grant-making foundations
Statutory sources Individuals Voluntary sector
Private sector Internally generated National Lottery
DfES and the Home Office together accounted for 36% of central government’s VCS spending.
Central government departments’ reported spending on VCOs, 2005/06 (£ millions)
Earned income only: contracts are driving growth, not sales to people/other sectors
Access to statutory income varies according to where VCOs are based…
Proportion of VCOs in each localauthority that receive statutory income, 2006/07 (%) (quintiles)
…but there is some evidence that access to funding is related to need.
Proportion of VCOs that receive local authority funding, classified by the index of multiple deprivation, 2009 (%)
Free reserves
1.4
4.1
4.5
4.6
4.8
5.0
6.3
6.5
6.7
6.8
8.0
8.0
9.2
9.5
18.2
19.9
44.3
74.7
0.0 20.0 40.0 60.0 80.0
Playgroups and nurseries
Umbrella bodies
Employment and training
International
Law and advocacy
Parent Teacher Associations
Culture and recreation
Village Halls
Development
Scout groups and youth clubs
Social Services
Health
Education
Environment
Religion
Housing
Grant-making foundations
Research
Months
Cuts…
Statutory funding of the VCS, 2001/01- 2007/08 (£billions). Source: NCVO
Spending back to here?
• Cuts in expenditure take us back to 2003/04: back to pre-Change Up levels • Cuts imply loss in income to the sector of £3.1-£3.2 billions, but assumes a) VCS funded only by unprotected depts, b) political indifference to the sector
How did government respond in 1991-93?
38
20
18
16
13
5
0 5 10 15 20 25 30 35 40
Cut funding
Look on charity as an extension of socialservices
Moved us lower down list of priorities
Became more sympathetic
Moved us higher up list of priorities
Increased rent/charges for facilities
37
19
14
11
9
6
6
0 5 10 15 20 25 30 35 40
Cut funding
Pressure to become service providers
Less sympathetic to aims
More sympathetic to aims
More funding provided
Shifted responsibility from government
Tightened charity laws
Yes33%
No61%
DK6%
Local Government
Yes23%
No64%
DK13%
Central Government
CommentaryA majority report no change in attitude of government to the sector – but where there was a response the most widely cited response was a funding cut.
Statutory funding matters
• £12.8 bn statutory funding is clearly critical to voluntary organisations and the communities they serve
• 25% cut = £3.2bn
• Local authority funding dominates: and this has been characterised by a clear shift from grants to contracts.
• Not all have benefited from this expansion: small organisations have not been successful in winning contracts
Public Service delivery has shaped the sector
• The VCS has geared-up relatively quickly
• Large and mid-sized organisations now rely heavily on contracts to deliver public services, particularly social care
• At least 450,000 paid staff are involved in the major service delivery areas
• But the sector is still a minor player in the public services industry
Resource threats
1. Inefficient resource allocation2. Can we cut public spending and maintain capacity to
grow the Big Society?3. The funding ecosystem: loss of diversity4. The gap between ‘here’ (funding) and ‘there’ (finance)5. Does more localism just mean more resources for town
halls? Or communities of place?6. Disappointment: scale is an issue that will not go away7. Loss of distinctiveness and independence: why give?
Resource opportunities
1. Grassroots resources: the voluntary impulse is strong2. Capacity: voluntary organisations are more resilient
than a decade ago3. Resource allocation: new forms of social finance 4. Giving: citizen philanthropy5. Asset transfer/sharing6. Working Wikily: new technology and open data will
power social change/resources7. The ferment of ideas produced by the Big Society
Where next: emerging questions for policy
1. Does Big Government really 'crowd out' Big Society?2. How do we address the issue of scaling-up voluntary
action? Big charities?3. Can the Big Society engage all parts of the community,
not just those who shout loudest?4. Are we prepared to stay with this for the long-term?5. What do VCOs – civil society - want the Big Society to
be?