Most OTS partners at risk from spending cuts

Finance | Tania Mason | 1 Mar 2010

The majority of the Office of the Third Sector’s 40 strategic partners get most of their income from the government, putting them squarely in the firing line for imminent public spending cuts.

An analysis of the accounts of all 40 strategic partners - mostly umbrella bodies who represent frontline charities or other umbrella bodies in the sector - shows that four receive at least 90 per cent of their funding from statutory sources. Almost 60 per cent get at least half of their revenue from government.

Income comes in the form of both grants and contracts and plenty of funding bounces between the partners, for instance several organisations receive grants from v, itself 95 per cent funded by government

While Cabinet Office funding makes up the main chunk of income for only a few bodies – v, Philanthropy UK, Community Development Exchange and Charity Trustee Networks – many more receive grants or contracts from other statutory sources such as central government departments, local authorities, regional development agencies or non-departmental public bodies.

Some of the organisations interviewed about the prospect of seeing their core funding severely reduced in a year’s time, once the 2008-11 spending round ends, were confident they could make up any shortfalls from other areas; others admitted they were highly vulnerable.

Some 8.4 per cent of the £147m annual OTS programme budget (£12.4m) is currently allocated to its 40 strategic partners.

Subscribers to Charity Finance and CivilSociety.co.uk can see the full analysis and league table h ere.

Directory: Charity Finance | Charity Trustee Networks | Office of the Third Sector | v

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