Share

Sector faces 'cliff edge in funding', NCVO chief executive warns

Sector faces 'cliff edge in funding', NCVO chief executive warns
News

Sector faces 'cliff edge in funding', NCVO chief executive warns

Finance | Kirsty Weakley | 1 Mar 2016

The next year is likely to be the “most challenging” for the voluntary sector out of the next five as the government implements spending cuts, Sir Stuart Etherington warned yesterday.

Speaking at the NCVO Funding Conference yesterday, Etherington said that the funding cuts that were announced in the Spending Review will mean that “this year will possibly be the most challenging of the next five” with local government facing a 56 per cent cut over the next five years.

He expects that from April the sector will see “something of a cliff-edge in funding” when current grant and contract agreements come to an end and local authorities overhaul arrangements.

Sir Stuart Etherington said that based on how government cuts were implemented in the last Parliament that: “This year will possibly be the most challenging of the next five.” And predicted that the combination local authority cuts and further devolution would mean “that local commissioning is going to look very different in a year’s time - and without intervention will become increasingly complex for smaller organisations to navigate”

He said that because the sector has already suffered from significant cuts many charities have priotised frontline spending at the expensive of improving back-office, which has “reduced their ability to adapt to the new financial normal, leading to further problems securing new funding sources”.

Ahead of this month’s Budget he urged the government to listen to the sector’s concerns around the devolution of business rates, apprenticeship levy and the impact of the National Living Wage.

Continued media scrutiny

The conference also heard how the charities can expect continued scrutiny from the media over the coming year.

Nick Brooks, head of charities at Kingston Smith, said that he was aware of national newspapers “looking for any the dirt they can dig out on charities” and that this would probably have “some effect on fundraised income”.

Etherington agreed that charities were “vulnerable” to criticism at the moment and said that where reporting was inaccurate is important “to be very robust in defence” but that where the press and public raise issues like executive pay and fundraising methods the sector needs to “address it in a different way” by being able to show impact and “demonstrating value for money”.

But he also said he was disappointed that some of the media coverage of fundraising regulation over the weekend “assumed that nothing had been done” because while “it is not fixed yet it is on the way to being fixed”.

He added that the sector shouldn’t be too pessimistic and that one of its biggest strengths was that: “We can tell stories about what has happened in interesting ways.”

 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Barnardo’s opens 89 charity shops and aims to be ‘biggest chain in the country’

29 Sep 2016

Barnardo’s opened 89 charity shops last year, and has overtaken Oxfam to become the second largest charity...

Heritage Lottery Fund launches £10m to improve youth engagement

28 Sep 2016

The Heritage Lottery fund has today launched a £10m pilot programme and is inviting groups of charities...

TSB bank raised double the amount for charity after switch from national to local focus

28 Sep 2016

TSB has raised £1m for local charities, which is double the amount it was raising when it had a single...

'Stop accusing volunteers of replacing paid staff; those jobs are never coming back'

29 Sep 2016

People should stop moaning about volunteers replacing paid staff because those jobs are never coming back,...

Labour MP wants National Citizen Service to be rolled out in Wales

29 Sep 2016

A Labour MP has urged the Welsh government and Westminster to agree to bring National Citizen Service...

We need the press to investigate the larger charities, says CEO of Media Trust

29 Sep 2016

Caroline Diehl, chief executive of the Media Trust, has said that it is important that charities are scrutinised...

Eduserv agrees £138,000 payment to retiring CEO without telling full board

26 Sep 2016

Eduserv, a charity that provides IT services to the public sector, agreed to pay its retiring chief executive...

Barnardo’s launches ten-year strategy with plans to double fundraising income

22 Sep 2016

Barnardo’s has announced a ten-year strategy which will aim to grow income by a third and change its...

Charities urge donors to give their first plastic £5 note to a good cause

19 Sep 2016

A social media campaign is urging people to donate their first plastic £5 note to charity, after the...

Join the discussion

 Twitter button

@CSFinance