1. The Role of Charities in Public Service Delivery
Charity Commission/NCVO seminar
November 2011
Karl Wilding, Head of Research
National Council for Voluntary Organisations
Contact: karl.wilding@ncvo-vol.org.uk or www.twitter.com/karlwilding
Evidence|Resources|Policy: www.ncvo-vol.org.uk/psd
2. The estimates in this slide pack refer to the voluntary
sector only – based on the general charities definition
3. Income: £264m
91,000 micro organisations
4,566 major organisations
Income: £26.9 billion
75,000 small/
medium
organisations
Income:
£8.4 billion
The VCS in 2008
4. How to grow by £10bn: donors + delivery
£billions
6. Earned income only: contracts are driving
growth, not sales to people/other sectors
7. Statutory income = £12.8 billion
8
30
55
68
73
22
5
22
35
38 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
10. Proportion of VCOs in each local
authority that receive statutory income, 2006/07 (%) (quintiles)
…so access to statutory income
(and PSD?) varies according to
where VCOs are based…
11. The State
(Public Agencies)
The Market
(Private Firms)
The Community
(Households,
Families)
Associations
(Voluntary/non-profit
Organisations)
Non-profit
For-profit
Formal
Informal
Public
Private
T h i r d
S e c t o
r
Key: Mixed Organisations/ Institutions:
Source: Evers & Laville, 2004
Where next?
12. Discussion points
• Role of charities of wider vol orgs?
• Public spending: a larger slice of a smaller cake?
• The inevitable challenge of scale
• Organic growth, new floorspace and new
entrants/hybrids
• Are we moving towards Lester Salamon’s concept of
how the state and the sector work?
Notas do Editor
The only other real growth area is the voluntary sector: but this is in essence an internal transfer of resources within the sector, so maybe not useful to think of it as such.
The only other real growth area is the voluntary sector: but this is in essence an internal transfer of resources within the sector, so maybe not useful to think of it as such.
Over three-quarters of statutory income to the sector (76%) is received by large and major organisations. This concentration of government funding in national organisations means that it is difficult to analyse geographically where government spending on the sector is distributed.
It is possible to look at which locations have large numbers of organisations that receive income from government. The graph shows the proportion of voluntary sector organisations in each local authority in England and Wales that receive funding from government, although it is worth remembering that sample sizes in some areas will be small. This funding can be
very small, and includes all types of grant and contract income from statutory sources.
The map shows that some local authority areas have very low levels of state funding to the voluntary sector – with as few as 7% of voluntary sector organisations in the area receiving funding from the state.
Other areas have up to three-quarters of voluntary sector organisations (76%) receiving funding from government. However, these extremes are the exception, as half of all local authority areas have between 18% and 33% of voluntary sector organisations receiving government funding.
Looking at the picture for regions and countries, government income is particularly important to voluntary sector organisations based in Yorkshire and the Humber, the East Midlands and Wales.
Income from government makes up more than half of the sector’s income in these three areas. Figures published by the Northern Ireland Council for Voluntary Action also indicate that government funding makes up nearly half of the income of charities in Northern Ireland.