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Local charities threatened by funding uncertainty

Fundraising | Ian Allsop | 7 Feb 2008

Grassroots voluntary sector organisations remain concerned about their income levels despite the government’s recent commitment to increase funding at a local level, according to two new pieces of research.

The National Council of Voluntary Child Care Organisations (NCVCCO) said many small children’s charities were facing an uncertain future and one in ten may have to close. And a recent survey of NAVCA’s 360 members revealed that they experienced a 14 per cent cut in income last year, from £195.6m to £172m.

NCVCCO’s report, Under the Radar, is part of its Supporting Small Organisations project, and draws on a survey of over 100 small voluntary and community sector children’s organisations. It also found that almost half of all small organisations had experienced a negative change in funding over the previous 12 months.

Ninety per cent of small organisations believe there is a need for more support and training around financial management.

The findings, according to NCVCCO, show that despite the government’s commitment to the third sector, many smaller organisations are in a vulnerable position and have to continually function under extremely precarious funding conditions.

Many are under threat of closure or may need to cut back services to stay afloat. The report calls for longer-term funding, the provision of grant funding by all local authorities, greater access to training for small organisations and for the government to monitor and evaluate how policy is implemented at a local level.

Joe Levenson, director of policy and communications at NCVCCO, said: “If the government is serious about giving all children the best start in life then it needs to address this worrying situation and do more to provide long-term funding and support for smaller organisations, many of whom work with some of the hardest-to-reach and most vulnerable children.

“While the government is to be commended for recently allocating £130m for smaller organisations [through the Grassroots Grants scheme], there is a danger this may be too little and too late for some children’s charities.”

Meanwhile, Kevin Curley (pictured), NAVCA chief executive, said the decline in its members’ income was a major concern. “As a result many of our members may be forced to make hard choices about what services they can continue to offer. It will be local groups that will suffer.

“In this increasingly competitive environment with an increased emphasis on public service delivery, the need for effective support is greater than ever.”

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Who's Who: Kevin Curley | Ian Allsop