Emergency Budget 2010 – What It Means For The Community Sector

Sector umbrella bodies respond to the Emergency Budget of 2010.

The announcement of George Osborne’s Emergency Budget has led to concern among leading sector umbrella bodies.

The budget includes plans to:

• Increase VAT from 17.5 to 20 per cent which is likely to lead to a rise in demand for charities’ services as access to welfare benefits are tightened and unemployment rises.

• Cut 25% from Government departments across the board, with the exception of health and aid spending.

• Cut the welfare budget by £11 billion.

• Substantial charity donors HMRC intends to replace the current rules and will be consulting informally on this through the summer. Full legislation will be published in the autumn.

• Review the current National Lottery taxation arrangements.

Neil Cleeveley, director of policy and communications at NAVCA, said the government needed to provide more information on their ideas for the Big Society:

“This is further evidence of just how tough public spending cuts are going to be. That’s why we need to know the government’s plans for the big society.

“We need to know that local charities and community groups will get the support they need to help communities through these hard times.”

ACEVO chief executive Stephen Bubb agreed that any plans for the Big Society must be as a result of consultation with the sector and showed concern about the rise in VAT:

“The scale of the challenge facing charities as a result of this Budget is enormous. The spending cuts outlined today will impact on frontline services. The vulnerable will likely receive less support, charities will be asked to do more, and will have to do so at a time that their cost base is rising due to the VAT rise.

“The Government has made clear that as it rolls back the state it wants a Big Society to flourish in response. If this is to happen, it is crucial that now the state works with us in genuine partnership, that we are fully engaged in the Spending Review and that it is not a PR process as some Conservatives have suggested.”

The rise in VAT was a concern also for the Charity Tax Group (CTG) who warned that the increase could cost charities £150 million a year.

Helen Donoghue of the CTG said:

“We fully understand the Government’s urgent need to tackle the deficit through spending cuts and tax increases.

“But it has also emphasised the need for fairness and protection for the least well off and, as our research has shown, the impact of this VAT increase will have a detrimental and disproportionate effect on the charity sector.”

The social enterprise sector said the budget lacked detail on the Big Society and did not offer anything directly to social enterprises.

Investment executive at Local Partnerships, Dan Gregory, said:

“If the big society is to mean anything in practice, and not just as a cover story for cuts, then the big spending departments and local authorities will have to take it seriously.”

“A handful of speeches and initiatives emerging from the Cabinet Office, communities or treasury departments will not make the big society, but we haven’t seen any evidence of either in this budget.”

“What is clear, however, is that the days of government throwing another fish over the side to social enterprises a couple of times a year have gone.”

To view the full budget document click here (opens in new window).

HM Treasury, 25/06/2010

NCVO Bursaries for Small Charities

The National Council for Voluntary Organisations (NCVO) is offering 21 bursaries for small charities in England to attend either the Labour, Lib Dem or Conservative Party conferences.

The bursaries will cover entrance to the conference, one night’s accommodation and travel costs.

Additionally the winning organisations will be granted access to MPs, cabinet ministers and research and policy officers.

For more information or to apply click here (opens in new window).

Third Sector Minister Praises Success of Funding Central

It has been revealed that Funding Central has generated £1.5m in grants and contract funding in its first six months.

Thousands of voluntary organisations and social enterprises have benefited from the new website, which also provides valuable advice and information on developing skills to draft winning tenders and successfully apply for grants or loan finance. Of those responding to an on-line survey in January, 100 organisations (16% of respondents) successfully applied for grants and contracts of between £800 and £85,000, with many more applications pending.

A survey of site users shows more than 70 per cent rate the “search” options as good or very good and 63 per cent think the advice section is good or very good. A total of 73 per cent of survey respondents rated a weekly personalised funding newsletter, supplied by Funding Central, as good or very good.

Graham Collins, sustainable funding programme manager at the National Council for Voluntary Organisations (NCVO), which runs the site, said:

“It’s great to see so many organisations using – and successfully securing income – through the website and valuing the advice posted there too. Funding Central is a vital resource for all third sector organisations because it brings together the broadest range of funding and finance opportunities in one place enabling organisations to explore all income options and make informed choices.”

The website is funded by the Office of the Third Sector. Angela Smith, Minister for the Third Sector, said: “OTS is delighted to be funding this great initiative. Funding Central makes it much easier for all voluntary and community organisations to find out about the funding and finance options available to them.

“The site allows comprehensive information to be found in one place and this is especially valuable during the economic downturn as third sector organisations will be able to spend more time on their core functions and less time searching and researching numerous sources of funding.  

“It’s very promising that so many organisations are using the site and making the most of the opportunities available to them.”

The Reader Organisation secured an 18-month contract worth £135,000 through the website to run ‘Get Into Reading’, their innovative social outreach project, in libraries, community centres and GP surgeries in Wigan. This was the first time the charity won a tender outside Liverpool. Get Into Reading runs weekly read-aloud groups, which improve public mental health and wellbeing.

Chris Catterall, national development manager at The Reader Organisation, said:

 “Funding Central was easy to use and has given us a great opportunity we might not otherwise have found.

“This opportunity to work with Wigan Council on their Worklessness Strategy has been achieved by developing unique health and culture partnerships to serve the local community and bring people together each week.”

Funding Central is free for all voluntary and community organisations to use, including social enterprises, and provides access to more than 4,000 funding and finance opportunities, such as grants, contracts and loans. This is supported by practical advice, information and easy-to-follow tips to submitting successful applications.

For more information contact Jenny Legg in NCVO’s press office on 020 7520 2469 or email jenny.legg@ncvo-vol.org.uk. For calls outside office hours, please ring 07714 243942.

NCVO, 11/03/2010

NCVO and CAF Release Report On Charitable Giving During The Recession

The latest report from the Charities Aid Foundation (CAF) and the National Council for Voluntary Organisations (NCVO) UK Giving series has been released this week and reveals what has happened to charitable giving during the recession.

The annual publication, which seeks to provide an overview of the latest trends in individual charitable giving, reported that the economic downturn has caused an 11% decrease in charitable donations throughout the UK, returning figures to those reported in the 2006/07 financial year.  Currently, 54% of adults donate in an average month, down two percent from 56% in 2007/08.

Some charitable giving factors have not been impacted by the recession, however.  The methods by which people choose to donate to charity have remained relatively stable, with most opting to give cash.  Similarly, the types of causes people are keen to support remain the same – with religion and medical research coming out on top.

In terms of moving forward in order that charitable giving and the third sector as a whole might weather the economic storm, the report points towards the maximizing of Gift Aid to help offset falls in donations and the simplification and improvement of the system of tax relief on donations for higher earners.  Planned giving, which would allow charities to predict their income more effectively and plan strategically, was also flagged up as an important measure and calls were made to government and the sector to enhance and promote these mechanisms.

For further information and to download a copy of the publication visit the NCVO website: http://www.ncvo-vol.org.uk/research/index.asp?id=15262.

Source: NCVO

NCVO Warn Against Government Cuts in Public Services Spending

A report released today by umbrella body the National Council for Voluntary Organisations (NCVO) has warned that government cuts in public service delivery contracts could spell disaster for the voluntary and community sector throughout the UK.

The report, The State and the Voluntary Sector – Recent trends in government funding and public service delivery – details the significance of public service delivery by voluntary sector organisations on behalf of the government and estimates that sector income from these endeavours currently totals £12 billion.  It also reveals that up to 25,000 voluntary organisations in the UK depend on statutory sources and public service contracts for up to three-quarters of their income. 

Worryingly, sector experts fear that voluntary and community organisations and the public service contracts aligned to them could be seen as an easy target for government cut backs.  This catastrophic blow could come despite the fact that many of the organisations which will be effected are currently delivering local, front-line services in social care, employment and training, law and advocacy, education and housing and providing much-needed support to recession hit communities.

Stuart Etherington, CEO, NCVO said:

“Public sector funders must avoid a knee jerk reaction.  Ill thought out cuts would ravage communities across the UK.  When developing spending plans, government, nationally and locally – must understand the vita contribution projects run by voluntary and community organisations make.  These services are not just nice add-ons; they are critical of the well-being of communities across the UK”.

For further information visit the NCVO website:

http://www.ncvo-vol.org.uk/

Source: NCVO, 04/09/09

NCVO Launch European Network for Voluntary Organisations

A fifteen strong network of voluntary sector organisations from across Europe have joined forces with NCVO to create the European Network of National Associations (ENNA).

The ENNA project, spearheaded by NCVO and involving organisations from countries such as Austria, Cyprus, Estonia, Portugal and Scotland, will bring together voluntary and community bodies from throughout Europe in order to engage in discussion about the current economic climate.  It is hoped the network will also serve to promote the sharing of best practice on capacity-building for the third sector, develop recession-beating tactics and resources and establish a European Charter, similar to the UK Compact.

Stuart Etherington, CEO of NCVO, commented:

“This is a momentous occasion and I am proud that so many countries are represented and we look forward to more joining. It is a critical time for the voluntary sector across Europe which makes it all the more crucial that we have come together to share experiences and look for ways to deliver far reaching benefits to communities across the Union”.

For further information, visit NCVO: http://www.ncvo-vol.org.uk/.

Source: NCVO, 23/07/09

Changes to Big Lottery Giving Receive Mixed Reception From Third Sector

The Big Lottery Fund (BLF) has unveiled its new funding strategy for the next six years.

Following on from the Big Thinking consultation in the Autumn of 2008, which asked stakeholders and the general public how they thought the Big Lottery budget should be spent, the BLF has announced its new funding strategy.   The strategy includes an extra £45 million to help charities hard-hit by the recession and a pledge to give at least 80% of its money to voluntary and community organisations.

The £45 million recession package will be distributed this financial year and will include cash injections for existing funding programmes such as the Reaching Communities scheme, Basis and Awards for All.  

In addition to extra money being made available, the BLF have also outlined new priorities and directions for their grant-making, with projects that reduce isolation and promote community cohesion and front-line services, now at the very top of their agenda.

Voluntary sector leaders have given the new funding strategy a mixed reception.  Ralph Michell, head of policy at Acevo, welcomed the changes and the extra money claiming, “The sector is going through a difficult time and needs all the help it can get”.  Navca’s Kevin Curley and NCVO’s Stuart Etherington, however, were less impressed and urged the BLF to increase its grant-making to voluntary organisations to 100%, citing the current economic climate, which has led to the slashing of available local authority grants and the creation of a difficult environment in which to fundraise, as a key motivation for such action.

Source: Big Lottery Fund

New Cabinet Committee For Third Sector

A new Cabinet sub-committee to tackle barriers to service delivery has been welcomed by the third sector.

The Office of the Third Sector (OTS) has invited representatives from eight Whitehall departments including the Department for Work and Pensions and the Department for Communities and Local Government to join forces with an advisory group of third sector representatives to form a new sub-committee.

The committee has been tasked with removing barriers faced by third sector organisations attempting to win central government public service delivery contracts and will carefully scrutinise the procurement procedures of a range of government departments in order to make them more effective and accessible.

The announcement of the sub-committee has been well received by the third sector.  Peter Kyle, deputy chief executive of Acevo, commented that the creation of the advisory body was a “triumph” and suggested it would have “real clout”.  Ben Kernigham, deputy chief executive of NCVO, also welcomed the committee, but urged them to take relevant and decisive action quickly:

“Voluntary sector organisations have already identified the barriers to their involvement in public service delivery.  We now need the committee to tackle these issues and take appropriate action.”

For further information visit the Office of the Third Sector (OTS) website: http://www.cabinetoffice.gov.uk/third_sector.aspx

Source: Cabinet Office

NCVO to give infrastructure bodies a helping hand

The National Council for Voluntary Organisations (NCVO) has announced it is planning to launch a new toolkit or framework to improve the effectiveness of third sector infrastructure bodies in 2010.

The Common Outcomes Framework for Infrastructure will be a redevelopment of the already existing Perform Framework and will be launched in partnership with Triangle Consulting and the Third Sector Research Centre as part of a £700,000 England-wide push to help infrastructure organisations improve their capacity and impact.

It is hoped the new toolkit will encourage a more outcomes-related, customer-focussed approach amongst third sector infrastructure bodies and will allow organisations access to a wide-range of comparative data about their own achievements and those of other agencies, so that “what works best” conclusions can be drawn.

For further information visit:

http://www.ncvo-vol.org.uk/

Source: Third Sector

New funds for Social Investment Bank?

According to NCVO chief executive, Stuart Etherington, speaking this week at the AGM of social lender, Charity Bank, money repaid to the Futurebuilders England loan fund should be ploughed back into the voluntary and charity sector through the establishment of a social investment bank.

The idea of a social investment bank is not a new topic for the third sector, with the government already previously stating that funding for such a facility would be sourced from the Dormant Bank and Building Societies Accounts Act and targeted towards tackling issues such as youth work and social inclusion.

But the government’s tentative, ‘wait and see’ attitude to this eagerly anticipated initiative, demonstrated by a lack lustre pledge as part of the 2009 budget to carry out a consultation into how the social investment bank might operate if established, has angered third sector members, many of whom believe the bank should be formed as quickly as possible if it is to help those most in need during the current economic climate. 

Etherington claims the sector and the government should look for funding for the bank elsewhere and flagged up the Futurebuilders loan fund as an effective way of making savings and helping third sector organisations without “having to use new money”.  He also called for a substantial £50 million government investment in the bank, in order to attract other sources of capital.

Source: Third Sector