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Navca income has almost halved in the last year

Joe Irvin, CEO of Navca
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Navca income has almost halved in the last year

Finance | Niki May Young | 15 Nov 2012

Navca has seen its income drop by 43 per cent in the last financial year.

The membership organisation, whose members voted yesterday to merge with Community Matters, has suffered an overall drop of almost £1.38m of funding, taking its income from £3.2m to £1.827m in the year ended 31 March 2012.

A significant proportion of the income loss has been the result of cuts to grants. Navca had a last run of funding totalling £637,962 from the now-defunct Capacitybuilders in the year to March 2011. A number of other organisations providing funding in that year also discontinued these grants in 2011/12 and in total over £1m was lost this way. 

Of the funders that have continued their support, the majority lowered their awards, reducing Navca's income by a further £500,000. This includes a £223,000 drop in funding from the Big Lottery Fund and an £80,000 drop in strategic partner funding from the Office for Civil Society.

Members not spending on services

Incoming resources from members also dropped. While membership took a mild hit of less than £7,000, membership services provided just over £55,000 for the organisation - a drop of more 50 per cent on the previous year. Meanwhile Navca increased the value of grants issued to its members from £108,500 to £124,906.

Some new funding helped to buffer cuts. Children England more than doubled its grant to the umbrella body for its training services to support and development organisations on child poverty and business planning, providing nearly £100,000. The Home Office, while discontinuing a £108,000 grant to the organisation, provided a new grant of £160,000 to help fund Navca's support of the Safer Future Communities initiative which will allow community groups to play an active role in the new arrangement for police and crime commissioners, who are being elected in communities across England today.

Staff feel the force of cuts

Staff at the organisation were not immune to the cuts, having dropped from an average of 37 employees in 2011 to 20.5 in 2012. Eight of these staff were lost across representation, learning and development and support services to members.

Acknowledging the difficulties faced, Navca trustees said in its accounts: "Navca continues to work toward a more secure and sustainable financial position. A more sustainable financial base will allow Navca to make longer-term plans which will increase its efficiency and effectiveness in delivering its strategic aims.

"The new chief executive (Joe Irvin) is undertaking a strategic review to ensure that Navca has the vision, mission, structure and resources needed to deliver its strategic aims. The strategic review will be completed in July and the recommendations implemented as appropriate."

Since submitting these accounts, Navca and Community Matters announced the intention to merge, which has now been approved by both sets of members. The organisations hope to be officially working as one in the spring of next year. 

 

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