How can we ensure a sustainable funding environment for charities?

Document type
Other
Corporate author(s)
National Council for Voluntary Organisations (Great Britain)
Publisher
NCVO
Date of publication
1 January 2014
Series
2015 project collection
Subject(s)
Social Policy
Collection
Social welfare
Material type
Reports

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Charities have had to operate in one of the toughest economic environments since the aftermath of the Second World War. The financial crisis in 2008 brought on a recession which saw the total value of the UK economy fall by 7.2% - and the UK economy is still smaller than it was in 2008. This has created a double challenge for charities. Firstly, a lack of growth has squeezed incomes, seen businesses tighten their belts and put pressure on the public finances. This has negatively impacted the voluntary sector’s income.

Secondly, the effects of the economic downturn have increased demand for the services that the voluntary sector provides. A survey of 1,000 charity professionals by the Guardian Voluntary Sector network in July 2013 found that 85% expected demand for their services to increase and 35% predicted a dramatic rise in demand. In order to create a sustainable environment for the future, charities will need to meet these twin challenges both through generating additional income and through better use of resources to meet demand for services.

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