The document discusses recent trends in government funding of voluntary organizations in the UK and their increasing role in public service delivery. It finds that statutory funding to voluntary organizations has grown significantly over the past decade as they have taken on more contracts to deliver public services, particularly in social care. However, smaller organizations have struggled to win contracts, and the sector remains minor compared to overall public services. The future relationship between the government and voluntary sector is uncertain as government funding levels may decrease.

1. The State and the Voluntary Sector Recent trends in government funding and public service delivery NCVO Research | September 2009 www.ncvo-vol.org.uk/almanac Supported by:

2. Introduction: the VCS in government statistics Joy Dobbs, NCVO Research

6. The big picture Jenny Clark, NCVO Research

7. The voluntary sector has seen unprecedented growth in the last decade… General charities’ income 1990/91 – 2006/07 (£ billions)

8. … and this has been driven by a closer financial relationship with the State. Statutory income to the voluntary sector 2000/01 – 2006/07 (£billions)

9. Statutory income to the VCS has grown with government spending, but is still a small share. Statutory income to the voluntary sector and total government spending (2000/01-2006/07 (2001 = 100)

10. Where does statutory funding come from? And how does it get there? Jenny Clark, NCVO Research

11. Local government is currently the main source of statutory funding for the VCS. Statutory funding to the voluntary sector by ‘tier’ of government, 2004/5 – 2006/07 (£ billions)

12. 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)

13. A shift from grants to contracts has been driven by local government. Voluntary sector grant and contract income from statutory sources, 2000/1 – 2006/07 (£ billions)

14. Where in the VCS does statutory funding go to? Karl Wilding, NCVO Research

15. Funding is largely directed towards VCOs delivering public services. Income from statutory sources by sub-sector, 2006/07 (% of each sub-sector’s income)

16. Over 450,000 VCS paid staff deliver public services. Number of employees in the six largest ‘public service’ employment categories, 2006 (headcount, thousands)

17. Major charities account for 44p in every £1 of statutory funding… How statutory income is shared: the proportion of statutory funding taken by each income band, 2006/07 (%)

18. … but it’s medium and large VCOs that are most dependent on statutory funding. The importance of statutory income to different sizes of organisation: (funding as a % of total income), 2006/07 (%)

19. Some organisations are heavily dependent upon statutory income…but most aren’t. Relative dependence upon statutory income: VCOs categorised according to how much of their income is from statutory sources, 2006/07

20. 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)

21. … 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 (%)

22. Pointers for discussion