The document summarizes key findings from the Civil Society Almanac 2010 regarding trends in UK voluntary sector funding and resources during and after the 2008 financial crisis and recession. It finds that [1] while the voluntary sector continued growing in organizations and income, the rate of expenditure growth slowed as fundraising became more difficult; [2] statutory funding remains the largest income source, particularly for large organizations, while smaller groups rely more on donations and earned income; and [3] resources remain heavily concentrated among the largest few organizations, though concentration does not appear to be worsening over time.

1. National Council for Voluntary Organisations
The UK
Voluntary Sector:
funding and resources
Findings from the Civil
Society Almanac 2010
Twitter: #almanac2010
Feel free to share, but please cite NCVO as the source
www.ncvo-vol.org.uk/almanac - comment, analysis, download

2. Most of our charities data cover the credit
crunch, not the (technical) recession
Quarter 2:
Aug: Credit Unemployment
4 starts to rise April: Spending
crunch begins
period 2008-11
begins Dec: End of
3 recession
Per cent change, year-on-year
2 Oct:
Icelandic
1 banks fail
0
-1
Nov: VAT
June: Brown Sept: Northern
-2 Rock fails
cut to 15%
new PM
-3
Dec:
-4 Interest
rates 2%
-5
-6 Almanac data 07-08 UK Giving data 07-08
Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sep Dec
06 06 07 07 07 07 08 08 08 08 09 09 09 09
Quarter

3. The estimates in this slide pack refer to the voluntary
sector only – based on the general charities definition

4. 1. Trends in aggregate funding

5. The slowdown in expenditure growth may
indicate activity levels have peaked…

6. With early filers for 2008/09 confirming this…
70
2007/08 2008/09
60
60%
% reporting an increase
50 2007/08
40
30
20
10
50%
2008/09
0
1 2 3 4 5 6 7 8 9 10
What % of organisations have reported
an increase in income? (By decile)
All sample

7. Many expect no change in income in the
short term…
Will income
change over
the next 12
months?
Charity Commission
recession survey, August
2009 (D/Ks excluded)

8. Some of the increase is still driven by new
establishments
4,685 5,180
established 6,919
established 2008 established
2007 2009
14,880
4,020 6,022 removed
removed removed

9. Reflections #1
• The sector is still growing
• Competition for funds has not been
diminished by widespread merger/closure
• Grant-makers most widely perceived as a
future income opportunity

10. 2. What is driving change in aggregate
funding?

11. How to grow by £10bn: donors + delivery

12. Though charitable giving dipped by 11% in
2008/09
Total Philanthropy
£11.2bn dipped in
Total Total 2007/08:
£10.3bn £9.9bn
£35 £33
£31 £ million+
£30 £29 donations fell
in value from
£25 £1.6bn to
£1.4bn (13%)
£/month
£20
£15
£10 £11 £10
£10
Individual
giving in the
£5
USA fell 6.3%
£0 in 2008
2006/7 2007/8 2008/9
Mean Median
Source: CAF/NCVO

13. Earned income

14. Earned income only: contracts are driving
growth, not sales to people/other sectors

15. Statutory income = £12.8 billion
80
Proportion of organisations 73
that receive state funding 68
70
(%)
60 % statutory income of total 55
income
50
38 37 36
40 35
30
30
22 22
20
8
10 5
0
Micro Small Medium Large Major Total

16. Can we invest to generate more income?
Income from
Intangible Fixed investments &
Assets: £19m cash in bank:
£3.2bn
Investments: Investment
£68.8bn Fixed management
costs: £459m
Assets:
£89.9bn
Tangible Fixed Current
Assets: £21.1bn
Assets:
£21.7bn

17. Reserves
50 Number of months' expenditure (R/H axis) 30
Free reserves estimate (L/H axis)
45
25
40
Free reserves (£bn)
35
20
30
Months
25 15
20
10
15
10
5
5
25.2 20.6 20.2 18.7 20.1 19.3 18.8 19.9
0 0
2000/01 2001/02 2002/03* 2003/04 2004/05 2005/06 2006/07 2007/08

18. Reserves
Research 74.7
Grant-making foundations 44.3
Housing 19.9
Religion 18.2
Environment 9.5
Education 9.2
Health 8.0
Social Services 8.0
Scout groups and youth clubs 6.8
Development 6.7
Village Halls 6.5
Culture and recreation 6.3
Parent Teacher Associations 5.0
Law and advocacy 4.8
International 4.6
Employment and training 4.5
Umbrella bodies 4.1
Playgroups and nurseries 1.4
0.0 20.0 40.0 60.0 80.0
Months

19. Loan finance
£3,500
2,888
£3,000
2,530
£2,500
£2,000 1,776
£1,500
1,060
£1,000
£500
£0
1994/95 2000/01 2001/02 2007/08

20. Reflections #2
• If statutory income growth reverses, are individual
donations realistically the only large-scale
alternative?
• If the organisations continue to grow in number, will
the ‘minor’ sources grow with them?
• It’s difficult to ignore statutory fee income and its
dominance of the funding landscape
• And what of prospects for earning income other than
from the commissioners?

21. 3. How is this aggregate funding
shared-out?

22. 91,000 micro organisations
Income: £264m
Income: £26.9 billion
4,566 major organisations
75,000 small/
medium Income:
organisations £8.4 billion Income is heavily
skewed to the few…

23. But evidence might suggest that this is not
getting any worse…
95
93
91
89
87
85
83
Top decile share (top decile defined each year)
81
79 Top decile share (top decile defined in 1995)
77
75
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

24. Statutory sources Individuals Voluntary sector
Private sector Internally generated National Lottery
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Employment and Training 70% 10% 4% 5%
Education 51% 34% 6% 5%
Law and Advocacy 51% 22% 11% 5%
Social Services 50% 32% 7% 6%
Housing 50% 23% 10% 10%
Umbrella bodies 45% 14% 18% 13%
Health 43% 41% 5% 6%
Development 40% 25% 19% 5%
Culture and Recreation 25% 39% 15% 9%
International 24% 51% 18% 4%
Environment 16% 58% 9% 12%
Religion 15% 62% 8% 13%
Research 7% 50% 11% 24%
Grant-making foundations 3% 41% 6% 38%

25. Individuals Statutory sources Internally generated
Voluntary sector Private sector National Lottery
Micro 64% 5% 17% 10% 2%
Small 48% 22% 13% 12% 2%
Medium 36% 35% 10% 11% 5%
Large 34% 38% 12% 8% 7%
Major 38% 37% 11% 7% 6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

26. Reflections #3
• All formal resources – income, assets,
workforce – are heavily skewed towards the
largest
• Although the public give more to large
charities, micro/small organisations rely more
on charitable donations
• Driving-up charitable giving in itself might not
help these?

27. For a free paper A2 poster of this infographic,
email research@ncvo-vol.org.uk