The 2015 project - Support for charitiesPresentation Transcript
Support for charities
How can funding, giving and charity
regulation be made to work better for the
This presentation covers the fourth of NCVO’s 2015 Project:
Support for charities.
It explores three topics – funding, giving and charity regulation.
The 2015 Project aims to stimulate discussion about what role
charities can, and should, have in a number of areas.
The feedback we receive will form the basis of NCVO’s work ahead of
the 2015 election.
The funding environment
A lack of economic growth has
squeezed incomes, and put
pressure on household incomes.
The spending environment for
government and local authority
departments are also
With rising demand, rising costs
and falling income, many
charities are under real pressure.
Source: BBC News
In addition to a reduction in income, many organisations have also
experienced an increased demand for services.
(Food banks) Source: Oxfam
Charities will need to meet these twin challenges – by generating
additional income and through better use of resources to meet demand
– in order to be sustainable in the current funding environment.
Grants and contracts
All political parties appear to support voluntary organisations
delivering more public services.
This could provide opportunities for growth in earned income.
But it will require a wider conversation on the appropriate balance
between grants and contracts.
The voluntary sector has seen a growth in earned income:
• In 2000/1, earned income as a proportion of the sector’s income
• In 2007/8 it was 49.7%
• By 2010/11 this had risen to 55.7%
The growth of social investment
Social investment is another factor to consider when looking at the
It is difficult to predict what the availability of investment for the
voluntary sector will be in the future, and to determine the number
of organisations that may benefit.
Giving levels remain
Median and mean amounts given per donor per month, 2004/05 – 2011/12
How are charities looking to attract new donations?
The growth of technology has made giving easier and
faster for people to give.
- Online sponsorship (Just Giving, Virgin Money)
- Social media campaigns (Movember)
- Charity gifts (Oxfam Unwrapped)
Education in giving
However, an ageing population means the sector has to take
steps to engage more young people in charity, encouraging them
to give time and/or money to the organisations and causes they
One response may be to integrate discussions around giving and
charity into education.
The way charities are regulated
According to charity law charities must have exclusively charitable
purposes, they must always benefit the public and all activities and
resources must go towards furthering these purposes.
The Charities Act sets out the main legal framework for charities in
England and Wales– it is then the role of the Charity Commission to
register and regulate charities.
Photo: Citizens Advice
A charity can campaign to further its charitable purpose and the needs
of its beneficiaries.
Campaigning and political activity can be legitimate and valuable
activities for charities to undertake.
However a charity cannot exist for a political purpose. This means that
political campaigning must be undertaken by a charity only in the
context of supporting the delivery of its charitable purposes.
Trust in institutions – July 2011
Haven't heard of
Quite a lot
The Armed Forces
Scouts and Guides
The Royal Family
The Royal Mail
TV and radio stations
The Fundraising Standards Board (FRSB)
A great deal
“Below is a list of public bodies and institutions. Please indicate, by
ticking in the appropriate column, how much trust you have in each of
Source: Charity Awareness Monitor, Jul 11,
Public trust in charities is high
The accountability of charities is one of the pillars that uphold the high
levels of public trust in voluntary organisations.
Transparency, integrity and honesty are vital for the sector to maintain
these high levels of public trust and support for their organisations.
In order to maintain these high levels of support and trust in the
charity brand, organisations will need to continue to further their
levels of transparency and integrity.
Getting our houses in order
There seems to be a narrative in the political and public spheres for
charities to ‘get their houses in order’ – to ensure that they are as
transparent, accountable and responsible as possible.
More transparency about how our organisations are run can only
serve to improve the levels of public trust and support for the
organisations they donate time, and money, to.
So what does this all mean?
Some food for thought.
What does the voluntary sector need to do so it is more sustainable
in the years ahead?
What role should social investment play in funding the voluntary
What can voluntary organisations do to attract a new generation of
How can charities ensure they are as transparent and accountable
How can the sector best promote the legitimacy and importance of
its campaigning role?
If you have 2 minutes - We’d love to hear your ideas in relation to
these big debates – contact email@example.com
If you have 10 minutes – Please read our discussion papers on each
topic, and respond to the questions.
• How can we ensure a sustainable funding environment for
• How can we increase giving to charities?
How does charity law and regulation currently work for the
voluntary sector, and what does the future hold?
Just Giving - http://www.justgiving.com/
The Pennies Foundation http://www.pennies.org.uk/
NCVO Almanac – Giving http://data.ncvo.org.uk/tag/charitable-giving/
NCVO Almanac – Funding
NCVO Almanac – Income
Charities Act 2011 - http://www.legislation.gov.uk/ukpga/2011/25
The Charity Commission – http://www.charitycommission.gov.uk/
The Transparency of lobbying, non-party campaigning and trade union
administration bill - http://www.legislation.gov.uk/ukpga/2011/25
NCVO amendment suggestions to Lobbying Bill http://blogs.ncvo.org.uk/2013/11/29/no-silver-bullets-but-eight-little-bullets-toimprove-the-lobbying-bill/