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National Council for Voluntary Organisations
Resilience, reserves and cuts Can the voluntary sector cope?
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Our charities cover the credit crunch, not the (technical) recession
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Sept 06
Dec 06
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Sept 07
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Mar 08
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Sept 08
Dec 08
Mar 09
Jun 09
Sep 09
Pe
r c
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t c
ha
ng
e, y
ea
r-o
n-y
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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 voluntary sector only – based on the general charities definition
1. Context: has a growing sector become a more resilient sector?
The slowdown in expenditure growth may indicate activity levels have peaked…
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
What do the sector’s assets look like?
Fixed Assets•Intangible assets •Tangible assets•Investments
Current Assets•Stocks•Debtors•Cash
Short-term liabilitiesLong-term liabilities
Net Assetsor
Total Funds
Free reserves = Net Assets minus
• Tangible Fixed Assets (Buildings, Equipment)
• Unexpendable endowments
Free reserves are what voluntary organisations need to cover unexpected changes in income
Reserves
Free reserves
1.4
4.1
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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
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