NAVCA has published
Crunch Time, a report showing how the recession is
affecting third sector organisations and the planning activities
being carried out to build resilience.
The report reviews work undertaken by 900 organisations around the
country over the last few months as part of NAVCA's Local
Resilience Action Planning (LRAP) initiative. It provides evidence
of how the recession has impacted on the local third sector and
shows local infrastructure organisations (LIOs) have a critically
important role in supporting the local third sector during the
recession and leading them out of the recession.
The report provides evidence that:
- Demand for services has increased, with reports of up to a 50%
rise compared to previous years. Demand has increased especially
for financial advice, housing support, employment advice and
support on issues relating to domestic violence.
- Organisational income is reducing - donations, sponsorship,
grants from trusts and foundations and earned income have all been
hit.
- There is an increase in volunteers and those seeking
placements. Matching an increased number of volunteers with
appropriate volunteering opportunities is stretching the sector's
resources.
- There is an increased, but not universal, commitment from
organisations to collaborate.
However, the report provides evidence of wide variations in how
organisations are being affected by the recession. In particular it
shows that organisations with income from £10k to £150k are hardest
hit. Crunch Time also shows that already deprived areas are
suffering most in this recession, disproving predictions made by
many economists that this recession would be a 'middle class'
recession.
A further crucial finding is that for some third sector
organisations, particularly those with a reliance on funding from
public bodies, the full impact of the recession is yet to be felt
and it may not be felt until 2010 or even 2011. This means that the
sector needs longer term help than currently planned by the
Government.
Kevin Curley, Chief Executive of NAVCA,
said:
"This report provides hard evidence from over 900 local third
sector organisations in 20 areas of England and shows the recession
is not affecting everyone in the same way. This means third sector
organisations need to avoid just asking the Government for
compensation for a loss of income or funding. Instead we need to
show how our work protects and strengthens communities, helping
people worst hit by the recession.
"The report also presents a challenge for LIOs. With less money
around, third sector organisations need to improve how they use
existing resources. LIOs must be at the heart of helping local
organisations make the cultural and structural changes that will
increase their resilience. Greater collaboration, even merger,
takes time to build. We need support over the medium term to make
this happen."
25 August 2009