Since the economic downturn 2 years ago VONNE has been measuring the impact of the recession and the subsequent public sector spending cuts on the North East’s Voluntary and Community Sector, through 6-monthly surveys. At times it has made for grim reading. Running through all of the previous studies was an underlying sense that things would be difficult but the majority of organisations would survive the challenges.

With the fourth survey, ‘Surviving in a Big Society’, the evidence is clear that the optimism has been greatly eroded. Organisations are reporting serious difficulties now, with a fragile future in store. The heavy reliance on public sector funding is likely to lead to large scale closures of services, loss of skilled staff and the ultimate closure of some organisations, when the cuts bite over the next few months.

This is at a time when demand for services has never been higher. VONNE warns that the most vulnerable in communities are likely to suffer as services are lost.

Findings

Of the 141 organisations who responded:

* 62% have seen a decrease in funding
* Over a third have made staff redundant
* Nearly half are using reserves
* 69% have experienced an increase in demand for their service

The future prospects look bleak for many:

* 64% expect to, or are considering closing a service
* 50% will be, or are considering reducing the number of beneficiaries they support
* 26% may close in the next 12 months

Medium-sized organisations appear to be struggling most:

* 86% are using reserves
* 42% may close their organisation

Read the findings >>

Voluntary organisations find demand soaring as they continue to be squeezed by the recession according to the results of a new survey into the impact of the recession on the third sector in the North East.

The survey, the largest of its kind, was conducted by VONNE, the North East voluntary sector umbrella body.  It builds on the results of a previous survey carried out six months ago, which reported charities struggling to cope with demand alongside falling funding. These latest results show that the situation has worsened for charities and the vulnerable people they support.

Over two thirds of the organisations surveyed reported an increase in demand for their services as a result of the recession – often essential services for the most disadvantaged.  At the same time, the majority of organisations report a decrease in funding. A quarter have reduced staffing levels this year and 10% expect to close down within the next twelve months. Small organisations are the most at risk with 33% expecting to close in the coming year.

Jo Curry, Chief Executive of VONNE, says that it is the region’s most vulnerable and disadvantaged that will lose out.

“The outcome of our follow up survey, ‘Still Surviving?’ is predictably depressing. As the impact of the recession begins to bite for the voluntary and community sector, the picture painted gets increasingly bleak,” she said.

“So far as it is possible to predict, the situation will get considerably worse before it gets better. Already we are beginning to see savage local authority cuts announced for the third sector. Northumberland County Council and Stockton Borough Council have announced cuts of 20% for next year and we are told that the sector there is, not surprisingly, ‘reeling’. Whatever the outcome of next year’s general election, there will be further huge cuts in public sector spending and this will quickly filter down to the voluntary and community sector.

“We ask the public to imagine what they would do without their local charities, as sadly this picture is becoming increasingly real. Go out and volunteer, give generously and ask of our region’s leaders to do all they can to support the life blood of our communities in this difficult time.”

Hardest hit are charities advising on family support, rural organisations, black and ethnic minority organisations and volunteering groups.

The main findings of the survey, entitled ‘Still Surviving?’, are:

• more than half of organisations report a decrease in funding
• over two thirds of organisations have experienced an increased demand for services
• a quarter of organisations have made staff redundant and a further quarter predict doing so in the next 12 months
• over a third of organisations are already operating on their reserves
• a third of organisations expect to close an existing service in the next 12 months.

Mike Worthington, Chair of VONNE, said:

“VONNE is committed to monitoring the situation and campaigning for funding to retain essential services. This follow up survey lists a number of recommendations which we will endeavour to implement on the sector’s behalf.”

More information:  Still Surviving? >>