Civil Society financial resources in 2010 Karl Wilding, Head of Research National Council for Voluntary Organisations Contact: [email_address] or www.twitter.com/karlwilding Evidence|Resources|Policy|Opinion|Signposting: www.ncvo-vol.org.uk
The growth in charity numbers, 1960-present
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 £ billions
Statutory income = £12.8 billion
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 local authority 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 (%)
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? Local Government Central Government Commentary A 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
Inefficient resource allocation
Can we cut public spending and maintain capacity to grow the Big Society?
The funding ecosystem: loss of diversity
The gap between ‘here’ (funding) and ‘there’ (finance)
Does more localism just mean more resources for town halls? Or communities of place?
Disappointment: scale is an issue that will not go away
Loss of distinctiveness and independence: why give?
Grassroots resources: the voluntary impulse is strong
Capacity: voluntary organisations are more resilient than a decade ago
Resource allocation: new forms of social finance
Giving: citizen philanthropy
Working Wikily: new technology and open data will power social change/resources
The ferment of ideas produced by the Big Society
Where next: emerging questions for policy
Does Big Government really 'crowd out' Big Society?
How do we address the issue of scaling-up voluntary action? Big charities?
Can the Big Society engage all parts of the community, not just those who shout loudest?
Are we prepared to stay with this for the long-term?
What do VCOs – civil society - want the Big Society to be?