Charities and Public Service delivery
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Charities and voluntary organizations play an important role in public service delivery in the UK. They receive around £12.8 billion in statutory funding each year, about 41% of their total income. The majority of this statutory funding comes from local governments and varies significantly depending on where voluntary organizations are located. There are over 91,000 micro organizations, 75,000 small/medium organizations, and 4,566 major organizations that make up the voluntary sector. While contracts are driving overall growth in the sector, access to public funding and the ability to deliver public services depends heavily on the policies and priorities of individual local authorities. The relationship between the state, private sector, and voluntary sector in providing public services is evolving, with more hybrid models
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Charities and Public Service delivery
- 1. The Role of Charities in Public Service Delivery Charity Commission/NCVO seminar November 2011 Karl Wilding, Head of Research National Council for Voluntary Organisations Contact: karl.wilding@ncvo-vol.org.uk or www.twitter.com/karlwilding Evidence|Resources|Policy: www.ncvo-vol.org.uk/psd
- 2. The estimates in this slide pack refer to the voluntary sector only – based on the general charities definition
- 3. Income: £264m 91,000 micro organisations 4,566 major organisations Income: £26.9 billion 75,000 small/ medium organisations Income: £8.4 billion The VCS in 2008
- 4. How to grow by £10bn: donors + delivery £billions
- 6. Earned income only: contracts are driving growth, not sales to people/other sectors
- 7. Statutory income = £12.8 billion 8 30 55 68 73 22 5 22 35 38 37 36 0 10 20 30 40 50 60 70 80 Micro Small Medium Large Major Total Proportion of organisations that receive state funding (%) % statutory income of total income
- 8. 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
- 9. Local government funds much of this PSD activity…
- 10. Proportion of VCOs in each local authority that receive statutory income, 2006/07 (%) (quintiles) …so access to statutory income (and PSD?) varies according to where VCOs are based…
- 11. The State (Public Agencies) The Market (Private Firms) The Community (Households, Families) Associations (Voluntary/non-profit Organisations) Non-profit For-profit Formal Informal Public Private T h i r d S e c t o r Key: Mixed Organisations/ Institutions: Source: Evers & Laville, 2004 Where next?
- 12. Discussion points • Role of charities of wider vol orgs? • Public spending: a larger slice of a smaller cake? • The inevitable challenge of scale • Organic growth, new floorspace and new entrants/hybrids • Are we moving towards Lester Salamon’s concept of how the state and the sector work?
Editor's Notes
- The only other real growth area is the voluntary sector: but this is in essence an internal transfer of resources within the sector, so maybe not useful to think of it as such.
- The only other real growth area is the voluntary sector: but this is in essence an internal transfer of resources within the sector, so maybe not useful to think of it as such.
- Over three-quarters of statutory income to the sector (76%) is received by large and major organisations. This concentration of government funding in national organisations means that it is difficult to analyse geographically where government spending on the sector is distributed. It is possible to look at which locations have large numbers of organisations that receive income from government. The graph shows the proportion of voluntary sector organisations in each local authority in England and Wales that receive funding from government, although it is worth remembering that sample sizes in some areas will be small. This funding can be very small, and includes all types of grant and contract income from statutory sources. The map shows that some local authority areas have very low levels of state funding to the voluntary sector – with as few as 7% of voluntary sector organisations in the area receiving funding from the state. Other areas have up to three-quarters of voluntary sector organisations (76%) receiving funding from government. However, these extremes are the exception, as half of all local authority areas have between 18% and 33% of voluntary sector organisations receiving government funding. Looking at the picture for regions and countries, government income is particularly important to voluntary sector organisations based in Yorkshire and the Humber, the East Midlands and Wales. Income from government makes up more than half of the sector’s income in these three areas. Figures published by the Northern Ireland Council for Voluntary Action also indicate that government funding makes up nearly half of the income of charities in Northern Ireland.