Third sector and small charities at risk following cuts
- 12 Sep
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:
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...
- 20 Apr
CHARITY WORKS TOWARDS A NATIONAL PLAN TO END HOMELESSNESS
Prime minister, Theresa May and the first ministers of Scotland and Wales congratulated "Crisis" on its anniversary and gave an assurance to work hand in hand with them while on a quest to eradicate...
- 30 Jan
THE FATE OF EU-FUNDED PROJECTS AND ITS EFFECT ON CHARITY SERVICES
In March 2016, forecasts of growth were low and the government's own estimates put the Treasury's coffers £122bn poorer by 2020.The supreme court has also determined that MPs must approve the...
- 15 Jun
INCREASE IN THREATS OF EVICTIONS FROM HOMES
After analysing statistics from the Ministry of Justice, the housing charity (Shelter) found the following:In the past year, the number of people seeking advice from 'Shelter' on their eviction...
- 07 Jun
CHARITIES, THEIR BRANDS, BENEFICIARIES AND HOW TO EFFECT CHANGE
"Most charities exist because their founders believed the future could be different if they mobilised supporters", but Mandy Johnson of the Guardian believes"This vision is being lost."Charities are...
- 17 Apr
Support for veterans to return to work
Places for People hopes to support veterans into the workplace and also benefit from the skills and experience they have to offer, reports 24dash.All veterans applying for jobs in Places for People's...
- 26 Jan
Charity registers as social landlord
It has now registered its housing department as a housing association, Inside Housing reports.The charity set up Golden Lane Housing (GLH) in 1998, which has now registered to be a social landlord...
- 14 Jan
Charity to develop app for people with disabilities
The funding will enable the charity to develop and test the free app, called FlyCatcher, which could be on the market by 2016.The app uses iBeacon technology to send information through smartphones...
- 14 Jan
Young people’s health harmed by fuel poverty
The Department of Energy and Climate Change have reported that 10% of households in England were in fuel poverty.The charity, Turn2us have stated that 75% of the 2,060 adults in the PRS who were...
- 08 Jan
Homelessness in Scotland
Shelter Scotland stated that this percentage is ‘disproportionate' to the sector's size which makes up 13% of all housing in Scotland, Inside Housing reports. It was also mentioned that the number...
- 07 Jan
Homelessness an ‘increasing trend’ in Wales
Cais blames the lack of options available to individuals due to the change in the type of support that can be offered.The Chief Executive of Cais, Clive Wolfendale has described the problem of...
Revenue Optimisation "Coventry Mind has recently worked through a programme of Housing Benefit optimisation with Support Solutions and in particular their specialist Danny Key. Throughout the whole process Danny demonstrated that he has excellent knowledge of the subject and was able to put forward a convincing case for the increase in funding to the Housing Benefit team. Coventry Mind has already and will continue to recommend Support Solutions and in particular this service to other organisations." Steven Hill - Director of Central Services