ALMANAC 2016:AN INTRODUCTION TO THE LATEST DATA ON THE VOLUNTARY SECTOR

WEBINAR26 MAY 2016

THE VOLUNTARY SECTOR’S ECONOMY IS DOMINATED BY LARGE CHARITIES, BUT MOST ORGANISATIONS ARE SMALL

Income band Micro

< £10k

Small

£10-100k

Medium

£100k-£1m

Large

£1m-£10m

Major

£10-£100m

Super-major> £100m

Number of organisations 81,104 54,477 22,150 4,613 581 40Annual income £0.2bn £1.9bn £6.8bn £12.9bn £14.0bn £8.0bn

There are 162,965 voluntary organisations in the UK with an income of £43.8bn

Source: NCVO, TSRC, Charity Commission

THE MAJORITY OF CHARITIES OPERATE LOCALLYArea of operation of voluntary organisations in England and Wales, by income band (%)Source: NCVO, Charity Commission

THE VOLUNTARY SECTOR EMPLOYS 827,000 PEOPLENumber of employees in Tesco, the voluntary sector, and the NHS in 2015Source: Labour Force Survey, Tesco, NHS

2001 2003 2005 2007-08 2008-09 2009-10 2010-11 2012-13 2013-14 2014-150

5

10

15

20

25

30

35

40

45

50

At least once a month At least once a year

VOLUNTEERING LEVELS REMAIN HIGHRates of formal volunteering, 2001 to 2014/15 (%)Source: Citizenship and Community Life Surveys

42%

27%

2010-2011 2012-13 2013-14 2014-150%

10%

20%

30%

40%

50%

60%

Volunteered at least once in last 12 months Volunteered at least once per month

THE PROPORTION OF YOUNG PEOPLE WHO VOLUNTEER CONTINUES TO GROWProportion of 16-25 year olds formally volunteering 2010/11 to 2014/15 (%)Source: Citizenship and Community Life Surveys

47%

35%

THE VOLUNTARY SECTOR PLAYS A SIGNIFICANT ROLE IN OUR ECONOMYSource: Defra, World Bank

HALF OF THE SECTOR’S TOTAL ASSETS ARE HELD BY 100 ORGANISATIONSSource: NCVO, TSRC, Charity Commission

INCOME AND SPENDING INCREASED FOR THE FIRST TIME SINCE 2009/10UK voluntary sector income and spending, 2000/01 to 2013/14 (£bn, 2013/14 prices)Source: NCVO, TSRC, Charity Commission

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

0

5

10

15

20

25

30

35

40

45

50

Income Spending

£43.8bn

£41.7bn

85% OF VOLUNTARY SECTOR SPENDING WAS ON CHARITABLE ACTIVITIES AND GRANT-MAKINGSpending breakdown, 2013/14Source: NCVO, TSRC, Charity Commission

MOST SOURCES OF INCOME INCREASED IN 2013/14 Sources of voluntary sector income, 2000/01 to 2013/14 (£bn, 2013/14 prices)Source: NCVO, TSRC, Charity Commission

£19.4bn

£15.0bn

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Individual Government Voluntary sectorInvestment Private sector National Lottery

MOST TYPES OF INCOME INCREASED IN 2013/14 Voluntary sector income type, 2000/01 to 2013/14 (£bn, 2013/14 prices)

Source: NCVO, TSRC, Charity Commission

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

0

5

10

15

20

25

30

Voluntary Earned Investment

£16.6bn

£24.1bn

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

0

2000

4000

6000

8000

10000

12000

14000

Grants Contracts

GOVERNMENT INCOME HAS INCREASED SLIGHTLY BUT HAS NOT REACHED 2009/10 LEVELSGovernment income from grants and contracts, 2001/01 to 2013/14 (£bn, 2013/14 prices)Source: NCVO, TSRC, Charity Commission

£12.2bn

£2.8bn

GOVERNMENT INCOME PREDOMINANTLY INCREASED IN THE SUPER-MAJOR CATEGORYChange in government income by income band, 2012/13 to 2013/14 (£m, 2013/14 prices)Source: NCVO, TSRC, Charity Commission

SURPRISED? Sources of voluntary sector income, 2000/01 to 2013/14 (£bn, 2013/14 prices)Source: NCVO, TSRC, Charity Commission

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Individual Government Voluntary sectorInvestment Private sector National Lottery

17

In 2013 NCVO said:

• Many smaller local orgs experiencing disproportionate cuts.

• But some larger orgs winning contacts / benefit from increased public spending.

• Likely to result in divergence of experiences, but forecast along middle line.

FORECAST SCENARIOS

Latest planned real change

Original nominal spending plans, actual inflationOriginal nominal spending plans, original inflation

Chan

ge in

RDE

L sin

ce 2

010/

11(£

bn, 2

015/

16 p

rices

)

Source: IFS, 2015; OBR, 2010. 2014; ONS

• Government cuts frontloaded within spending period.

• Small rise in RDEL in 2013/14.

GOVERNMENT SPENDING PATTERNS

2008/09 2009/10 2010/11 2011/12 2012/13 2013/1460

70

80

90

100

110

120

130

140

Minor Small MediumLarge Major Super-major

THE RISE OF SUPER-MAJOR CHARITIESOverall income by income band, cumulative change, 2008/09 to 2013/14 (2008/09 = 100)Source: NCVO, TSRC, Charity Commission

96% of orgs

4% of orgs

• Changing nature of public service funding• Public service contracts and grants: risk becoming

inaccessible to all but the largest providers• Policy action required to avert (further) loss of

specialist/local expertise• Maintaining public trust and confidence: sector relies as

ever on generosity of those who give time and money• Continued shape shifting: social enterprise, consortia,

social prescribing, spin outs…

POLICY IMPLICATIONS

• There are 163,000 voluntary organisations in the UK• Most charities are small, but the majority of the sector’s

income is held by a limited number of larger organisations• Income and spending has risen for the first time since 2009/10• Most of the rise in income has been seen amongst the very

largest charities• The sector makes a major contribution to the UK economy• Volunteering remains the lifeblood of the sector• Youth volunteering is a continued area of growth• For more data visit data.ncvo.org.uk

SUMMARY

22

NCVO champions the voluntary sector and volunteer movement to create a better society.

We connect, represent and support over 11,500 voluntary sector member organisations, from the smallest community groups to the largest charities.This helps our members and their millions of volunteers make the biggest difference to the causes they believe in.• Search for NCVO membership• Visit www.ncvo.org.uk/join• Email membership@ncvo.org.uk