Membership income at NCVO increased by over a quarter in 2025-26, as the sector umbrella body reported difficulties in growing income via its commercial services.
NCVO’s latest annual report and accounts show its membership income increased by 27% to £2.22m in the year to March 2026, driven by an increase in subscription fees.
Published this week, the accounts say this income source “has continued to flourish”, with membership numbers remaining relatively flat at 17,020 (2024-25: 17,025).
Income from charitable activities remained static at £4.11m, while total income increased marginally from £9.35m to £9.56m.
Conversely, growing income via commercial services, including conferencing venue hire, training and consultancy, “has been more difficult”, the accounts say.
Services and partnerships income fell by 20% to £1.83m during the year, while income from trading activities slightly decreased to £2.71m.
The accounts say the team managing Society Building (NCVO’s headquarters) worked hard on renting space for conferences and longer-term tenants in an “increasingly competitive market”.
“The year ending 31 March 2026 saw continued pressures across our operating and financial environment,” the accounts read.
“Similar pressures face the whole voluntary sector, including rising costs and a challenging income landscape.”
Higher costs from restructure
NCVO’s total expenditure increased from £8.84m in 2024-25 to £9.28m in 2025-26, with salaries and other staff-related items representing 65% of those costs (£5.93m).
The increase in costs was driven by higher spending on “engagement and influence”, which more than doubled to £2.85m, and on “transformation”, which nearly doubled to £1.98m.
The accounts say NCVO made “some difficult but necessary decisions to reshape parts of the organisation to ensure we have an even greater impact for our members in the future”.
During the year under review, it completed an organisational restructuring programme to align its staffing structure with its strategic priorities and future operating requirements.
This included reshaping teams, investing in new leadership capacity and strengthening digital, data and strategic intelligence capabilities.
As a result, NCVO incurred redundancy and other termination payments of £196,000 (2024-25: £104,000). At the year-end, redundancy pay of £81,000 (2024-25: nil) was outstanding.
“These decisions weren’t easy,” the accounts say. “They required us to balance investment in the future with the realities of operating in a challenging financial environment, while continuing to deliver high-quality services and support for our members.”
The charity had 80 full-time equivalent employees on average during the year, up from 75 in 2024-25.
‘Transformation requires difficult choices’
Writing in the accounts, NCVO’s chief executive Kate Lee said “as our members evolve, their needs of NCVO also do – and we must keep up”.
“But, like so many charities, NCVO has spent several years responding to a sequence of crises,” she said.
“This year gave us space to ask some fundamental questions: what does civil society need from us now? Where can we have the greatest impact? And are we organised in the best possible way to deliver it?
“The answers have shaped our new strategy and the transformation needed to deliver it. We’ve invested in our technology, strengthened our financial resilience, modernised our ways of working and reviewed our structures, capabilities and capacity.
“This is about ensuring we have a strong position from which to grow.”
Lee said “transformation requires difficult choices”, acknowledging that some of the changes NCVO made prompted questions about its direction and what they meant for staff, members and partners.
“Change inevitably brings uncertainty, but every decision has been made with one goal: ensuring NCVO is in the strongest possible position to fulfil its purpose and create lasting change for civil society,” she added.
“Because the reality is, if we don’t stand up for civil society, who will? Our goal is now clear. Our organisation is now focussed, and ready to meet the moment.”
