National Council for Voluntary Organisations

The UK Voluntary Sector: funding and resources

Findings from the Civil Society Almanac 2010

Twitter: #almanac2010Feel free to share, but please cite NCVO as the sou rcewww.ncvo-vol.org.uk/almanac - comment, analysis, download

Most of our charities data cover the credit crunch, not the (technical) recession

-6

-5

-4

-3

-2

-1

0

1

2

3

4

Sept 06

Dec 06

Mar 07

Jun 07

Sept 07

Dec 07

Mar 08

Jun 08

Sept 08

Dec 08

Mar 09

Jun 09

Sep 09

Per

cen

t cha

nge,

yea

r-on

-yea

r

Quarter

Dec: End of recession

Dec09

June: Brown new PM

Aug: Credit crunch begins

Quarter 2: Unemployment

starts to rise

Dec: Interest

rates 2%

Nov: VAT cut to 15%

Oct: Icelandic banks fail

April: Spending period 2008-11

begins

Sept: Northern Rock fails

Almanac data 07-08 UK Giving data 07-08

The estimates in this slide pack refer to the volun tary sector only – based on the general charities definit ion

1. Trends in aggregate funding

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

With early filers for 2008/09 confirming this…

What % of organisations have reported an increase in income? (By decile)

0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8 9 10

% r

ep

ort

ing

an

in

cre

ase

2007/08 2008/09

60%2007/08

50%2008/09

All sample

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)

4,685established

2007

5,180established

2008

4,020removed

6,022removed

14,880removed

6,919established

2009

Some of the increase is still driven by new

establishments

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

2. What is driving change in aggregate

funding?

How to grow by £10bn: donors + delivery

Though charitable giving dipped by 11% in 2008/09

£29

£33£31

£10£11

£10

£0

£5

£10

£15

£20

£25

£30

£35

2006/7 2007/8 2008/9

£/m

on

th

Mean Median

Total £10.3bn

Total £11.2bn Total

£9.9bn

Philanthropy dipped in 2007/08:

£ million+ donations fell in value from

£1.6bn to £1.4bn (13%)

Individual giving in the USA fell 6.3%

in 2008

Source: CAF/NCVO

Earned income

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

Statutory income = £12.8 billion

8

30

55

68

73

22

5

22

3538 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

Tangible Fixed Assets: £21.1bn

Investments: £68.8bn

Intangible Fixed Assets: £19m

Fixed Assets: £89.9bn

Current Assets: £21.7bn

Income from investments & cash in bank: £3.2bn

Investment management costs: £459m

Can we invest to generate more income?

Reserves

25.2 20.6 20.2 18.7 20.1 19.3 18.8 19.90

5

10

15

20

25

30

35

40

45

50

2000/01 2001/02 2002/03* 2003/04 2004/05 2005/06 2006/07 2007/08

Fre

e r

ese

rve

s (£

bn

)

0

5

10

15

20

25

30

Mo

nth

s

Number of months' expenditure (R/H axis)

Free reserves estimate (L/H axis)

Reserves

1.4

4.1

4.5

4.6

4.8

5.0

6.3

6.5

6.7

6.8

8.0

8.0

9.2

9.5

18.2

19.9

44.3

74.7

0.0 20.0 40.0 60.0 80.0

Playgroups and nurseries

Umbrella bodies

Employment and training

International

Law and advocacy

Parent Teacher Associations

Culture and recreation

Village Halls

Development

Scout groups and youth clubs

Social Services

Health

Education

Environment

Religion

Housing

Grant-making foundations

Research

Months

Loan finance

1,060

1,776

2,530

2,888

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

1994/95 2000/01 2001/02 2007/08

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?

3. How is this aggregate funding

shared-out?

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…

But evidence might suggest that this is not

getting any worse…

75

77

79

81

83

85

87

89

91

93

95

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Top decile share (top decile defined each year)

Top decile share (top decile defined in 1995)

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

38%

34%

36%

48%

64%

37%

38%

35%

22%

5%

11%

12%

10%

13%

17%

7%

8%

11%

12%

10%

6%

7%

5%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Major

Large

Medium

Small

Micro

Individuals Statutory sources Internally generated

Voluntary sector Private sector National Lottery

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?

For a free paper A2 poster of this infographic,

email research@ncvo-vol.org.uk