Strategic advice & funding for housing, care & support providers

Contact us now to discuss your requirements

    Small charities are spending more than they have coming in, according to the report released today by SCVO, and are disproportionately affected by the funding cuts.

    Since 2009, larger charities and housing associations have found a modest growth in income. However, for other charities it has still not improved since 2009 and a large proportion are spending more than their income.

    The main findings from the report when compared with the previous year are:

    • Annual income up to £4.5 billion in 2011 which has grown marginally from £4.4 billion in 2010, and Expenditure up to £4.3 billion. Across the board many charities saw a sharp drop in income in 2011. This also included some larger charities that lost contracts and major trusts which earned less interest on their investments, and if you exclude credit unions and housing associations, the turn over level has not yet equalled that in 2009.
    • Staff numbers increase to 138,000 however Full Time Equivalent employees has gone down to 83,350 – The third sector is employing more people, but on less hours. There is less money available to meet staff costs, but rather than shedding jobs, the sector is reducing hours for staff, more temporary contracts and fewer full-time worker
    • Assets rise to £8.6 billion but Assets of smaller charities shrink, and the majority of smaller charities spend more than their income – Major deficits for many of our sector’s smaller charities is masked by modest return to income growth for larger charities and housing associations which make it look as though the sector’s reserves are healthier than they are really.
    • Smaller charities have got less cash reserves in the bank to fall back on as income sources dry up, despite the sector as a whole’s assets and reserves have increased slightly. Larger charities and housing associations have had a small growth in assets which hides the major drop of assets held by smaller organisations

    Martin Sime, Chief Executive, Scottish Council for Voluntary Organisations, said:

    As income falls short of expenditure, particularly for smaller charities, organisations are being forced to use what assets and reserves they have left to keep their doors open for as long as possible. With limited reserves, which many organisations already dipped into last year, charities are running out of ways to compensate for the funding drain.

    Organisations are working hard to maintain the high quality services they provide to communities across Scotland and keep their staff. With ever growing demand set to skyrocket as the UK welfare cuts kick in, third sector organisations are facing an impossible conundrum. Something will have to give to secure a sustainable future for the sector.

    Read full report from SCVO

    Read our related articles:

    Have your say on Small Charitable Donations Bill

    Economic Secretary to the Treasury, Chloe Smith introduced the second reading of the Small Charitable Donations Bill in the House of Commons on Tuesday 4 September 2012…

    Global Hearts for Children charity forced to shut

    An 18 year old charity, Global Hearts for Children, has been forced to go in to liquidation due to a drop in the number of cash donations…

    NAVCA members gloomy about future

    Members are pessimistic about the financial situations; 73% of members think their own situation will get worse and 71% think that the financial position of the local voluntary and community sector will get worse in the next 12 months…

    September 12, 2012 by Louise Byrne Categories: Charity News

    Latest Briefing

    Introduction The National Statement of Expectations for Supported Housing (NSE) was finally published on 20 October 2020, five years after the 2015 Comprehensive Spending Review suggested regulatory and oversight changes were needed, although in 2018 the government >>>


    Customer endorsement

    What are the Future Funding Arrangements for Supported and Sheltered Housing?

    "Really enjoyable presentation, knowledge of presenters was excellent"

    M.D. - Community Integrated Care

    Quick Contact