This document discusses funding trends and projections for the voluntary sector in the UK. It finds that voluntary sector spending has not grown since 2006/07 despite increases in income. Government grants and contracts have fallen significantly since 2008/09 due to cuts in government spending. Income from individuals has increased but mostly from fees rather than donations. Projections show that even if individual giving rises, it will not make up for continuing cuts to government funding, threatening the future and role of the voluntary sector.

1. FUNDING AND THE
FUTURE
18 NOVEMBER 2015
Michael Birtwistle, Senior Policy Officer

2. FUNDING
2

3. 3
30.2 29.6
32.6
35.7 36.6
40.1 41.4 42.1 40.6 40.8 41.4 40.6 40.5 40.7
-28.8 29.0
31.4
33.7 33.2
37.7 38.9 38.9 39.4 40.1 39.6 39.3 39.3 39.1
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
INCOME
SPENDING
VOLUNTARY SECTOR HAS SEEN NO GROWTH
IN SPENDING SINCE 2006/07
Voluntary sector income and spending, 2000/01 to 2013/14 (£ billions, 2012/13 prices)
Source: NCVO, TSRC, Charity Commission
Note: Figures for 2013/14 are provisional

4. 4
INDIVIDUALS AND GOVERNMENT ARE THE TWO MAJOR
SOURCES OF INCOME FOR THE SECTOR
Voluntary sector income, 2000/01 to 2012/13 (£ billions, 2012/13 prices)
Source: NCVO, TSRC, Charity Commission

5. 5
0.2
-0.3
-0.4
-0.3
0.1
0.0
-0.7
-0.1
2009/10 2010/11 2011/12 2012/13
Central Government
Local Government
INCOME FROM BOTH LOCAL AND CENTRAL
GOVERNMENT HAS FALLEN
Local and central government spending on the voluntary sector, change from previous year,
2009/10 to 2012/13 (£bn, 2012/13 prices)
Source: NCVO, TSRC, Charity Commission

6. 6
INCOME FROM BOTH LOCAL AND CENTRAL
GOVERNMENT HAS FALLEN
Local and central government spending on the voluntary sector, cumulative change, 2008/09 to
2012/13 (2008/09 = 100)
Source: NCVO, TSRC, Charity Commission
80
85
90
95
100
105
2008/09 2009/10 2010/11 2011/12 2012/13
Central Government
Local Government

7. 7
CHANGES IN GOVERNMENT INCOME DEPEND ON
ORGANISATION SIZE
Government spending on the voluntary sector, cumulative change, 2008/09 to 2012/13 (2008/09
= 100)
Source: NCVO, TSRC, Charity Commission
40
50
60
70
80
90
100
110
120
2008/09 2009/10 2010/11 2011/12 2012/13
Minor + Small
Medium
Large
Major

8. 8
4.9
6.0
2.2
4.8
12.1 12.3
12.1
11.1
0
5
10
15
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
Government contracts
Government grants
GOVERNMENT
GRANTS AND
CONTRACTS HAVE
CONTINUED TO FALL
AS GOVERNMENT
SPENDING IS CUT
Government grant and contract
income to the UK voluntary sector,
2000/01 to 2012/13 (£ billions,
2012/13 prices)
Source: NCVO, TSRC, Charity Commission

9. 9
THE INCREASE IN INCOME FROM INDIVIDUALS IS
ENTIRELY FROM FEES FOR SERVICES
Voluntary sector income from individuals, cumulative change, 2007/08 to 2012/13 (2007/08 =
100)
Source: NCVO, TSRC, Charity Commission
60
80
100
120
140
160
180
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Donations
Legacies
Fees for services
Fundraising

10. THE FUTURE
10

11. 11
INCOME FROM INDIVIDUALS IS NOT MAKING UP FOR
GOVERNMENT CUTS
Voluntary sector income projections from individuals and government sources (£bn, 2012/13
prices)
Source: NCVO, TSRC, Charity Commission
0
5
10
15
20
25
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
Individual income
Individual income (inflation adjusted
projections)
Individual income required to offset
cuts
Government income
Government income (inflation
adjusted projections)

13. 13
BARNET: THE GRAPH OF DOOM

15. LOCAL AUTHORITY FUNDING FOR CORE SERVICES
Source: Original graph from LGA interim report, amended to include LGA-estimated cuts in grants to local
authorities following Spending Review 2015 (adjusted to reflect recent developments).

16. The State
(Public Agencies)
The Market
(Private Firms)
The Community
(Households,
Families)
Public
Private
Voluntary
Sector
Source: Evers & Laville, 2004

17. CONTACT
Michael.Birtwistle@ncvo.org.uk
020 7520 2436
17