Surviving not Thriving - impact of the downturn and cuts
Who will Survive or Thrive past 3/2011?
During spring 2010, VONNE undertook the third survey in our continued monitoring of the impact of the recession on the North East's voluntary and community sector (VCS). During the course of the survey the political landscape changed dramatically, and as the survey results show, the public sector budget cuts have the potential for significant impact on the sector in the region.
Stand-out figures include:
- 78% of respondents have seen an increase in demand for their services
- 51% of respondents have seen a decrease in their annual income
- 92% of respondents receive some or all of their income from the public sector.
Download the results of the survey in our briefing note (Word 164kb)
It is evident that the VCS are responding to the challenges amplified by the recession despite increased pressures on their own organisations. Whilst the majority of the sector is coping, just, for how much longer will they be able to cope is questionable.
The announcements of between 25% and 40% budget cuts for the public sector and the changes in policy direction will place greater pressures and challenges on the region in the coming months and years ahead.
We accept cuts will have to be made in public sector budgets and some of this pain will have to be borne by VCS organisations. However at a time when more and more people are turning to the region's VCS for help and support, and where our services will become essential to some of the most vulnerable in society we make the following recommendation:
We call upon public sector bodies, particularly local authorities, to engage voluntary and community sector organisations at an early stage in the decision making process when considering cuts to funding and public sector budgets. Any cuts should be kept to a minimum and not be made disproportionate upon the sector, in an effort to maximise efficiency savings targets.
Tell us how you are being affected - email bigchallenge@vonne.org.uk
Support available
National third sector bodies have gathered together online resources to help organisations cope with cuts in funding:
NCVO includes how you spend and raise your money; how you demonstrate your worth; how you develop and manage your workforce; how you can work with other organisations; how you can innovate; and how to use the Compact.
Compact Voices has tips for public sector bodies and information for voluntary groups.They want to you to tell them what is happening, were you warned or consulted of any cuts?
Cutswatch.org.uk has been set up by ACEVO to provide guidance and support to third sector organisations through public spending cuts. The site provides news, case studies, guides and information on how to positively deal with spending cuts, along with links to events and services.
Funding Central
NCVO and the Cabinet Office have developed Funding Central, which is a website which identified funding opportunities (including grants and contracts) available from a number of funding source including government, local authorities and the European Union amongst others.
Further information can be found on the Funding Central website at www.fundingcentral.org.uk
Business Link
Business Link doesn't just provide support for businesses. For VCS organisations feeling the effects of the downturn there is plenty of support available from finding the right finance, raising productivity to saving money by reducing waste and saving energy.
0845 600 9 006 - Business advice and support
North East VCS Economic Regeneration Forum
The North East VCS Economic Regeneration Forum is currently looking at the potential opportunities and threats that are arising as a result of the current economic climate. Further information on North East VCS Economic Regeneration Forum and its current work, including presentation slides and reports from meetings, can be accessed on the North East VCS Economic Regeneration Forum section of VONNE's website.
