Volunteer recruitment is a rising concern, with 63% of small charities worried, according to a new survey by Pro Bono Economics (PBE) and Nottingham Trent University.
Nonetheless, the survey suggests growing optimism in the sector following months of financial hardship associated with the cost-of-living crisis.
There is, however, rising concern about dwindling volunteer numbers leaving charities in a precarious position.
The latest VCSE Sector Barometer, a quarterly survey found almost six in 10 charities say volunteer recruitment over the past year has been difficult and since November last year, the proportion of small charities ranking it as a main organisational concern has grown from 45% to 63%.
The latest barometer found that more than four in 10 (42%) small charities consider volunteer retention a main concern for their organisation.
Around one in six (17%) charities overall believe the wellbeing of their volunteers has deteriorated in the past 12 months.
A third of charities cited the cost-of-living crisis as an issue for volunteer retention and one in five (19%) said it has made volunteer recruitment more difficult. Nonetheless, a quarter (27%) of charities cited a lack of organisational capacity as a key issue preventing volunteer recruitment and one in six (17%) say they lack the resources to retain them.
Around four in 10 organisations reported they have been unable to meet their objectives over the last 12 months due to a lack of volunteers, while concern about volunteer recruitment has grown among charities of all sizes, especially small charities, since November last year.
This has been driven by a combination of factors, but reflects a wider decline in volunteering across the country over the past decade.
Increasingly positive financial outlook
It also found an increasing expectation among charities that their financial position will improve, alongside a marked reduction in concern about energy costs.
For the first time since the survey series began, in November 2022, more than half of charities of all sizes now expect to meet demand over the next three months.
The survey also found increased confidence in recruitment, with a rise since November in the proportion of charities of all sizes expecting their workforce to grow in the next three months.
This shift in confidence among charities comes against a persistently challenging backdrop. Charity demand remains elevated, with a majority saying it continues to grow. And, while more expect to meet demand, it remains the case that a large proportion do not expect to do so.
Optimism among medium-sized charities has hiked to 28% from 21% in November, while a quarter of small charities now expect their finances to improve, compared to one-fifth in November.
Large charities have recorded the biggest jump in optimism, with a third, 32%, now saying they expect their financial position to improve over the next three months, compared to 17% in November.
The latest Barometer found concerns about energy prices have fallen over the past six months for charities of all sizes, which may be related to the growth in optimism.
Moreover, since November, the proportion of charities of all sizes expecting their workforce to grow in the next three months has increased.
‘There is a lot of ground to make up’
Matt Whittaker, chief executive of PBE said “the first glimmers of hope emerging in the economy” and “the latest survey seems to suggest that the car has at least shifted out of reverse for the social sector”.
“Nevertheless, there is a lot of ground to make up. Demand for charity support continues to rise and finances remain restrictively tight for very many organisations. Against this backdrop, it’s worrying to see concern about volunteer recruitment, retention and wellbeing growing across the sector.”
The survey was undertaken between 9 and 23 May 2023, and is the third in a quarterly barometer series.
The figures reflect the responses of the 1,157 registered charities and other voluntary groups which completed 90% or more of the survey.
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