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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 [email protected]