charities and public service delivery

The Role of Charities in Public Service DeliveryCharity Commission/NCVO seminarNovember 2011

Karl Wilding, Head of Research National Council for Voluntary Organisations

Contact: karl.wilding@ncvo-vol.org.uk or www.twitter.com/karlwilding Evidence|Resources|Policy: www.ncvo-vol.org.uk/psd

The estimates in this slide pack refer to the voluntary sector only – based on the general charities definition

Income: £264m

91,000 micro organisations

4,566 major organisations

Income: £26.9 billion

75,000 small/ medium organisations

Income: £8.4 billion

The VCS in 2008

How to grow by £10bn: donors + delivery£

billi

ons

Earned income

Earned income only: contracts are driving growth, not sales to people/other sectors

Statutory income = £12.8 billion

8

30

55

6873

22

5

22

3538 37 36

0

10

20

30

40

50

60

70

80

Micro Small Medium Large Major Total

Proportion of organisationsthat receive state funding(%)% statutory income of totalincome

70%

51%

51%

50%

50%

45%

43%

40%

25%

24%

16%

15%

7%

3%

10%

34%

22%

32%

23%

14%

41%

25%

39%

51%

58%

62%

50%

41%

4%

6%

11%

7%

10%

18%

5%

19%

15%

18%

9%

8%

11%

6%

5%

5%

5%

6%

10%

13%

6%

5%

9%

4%

12%

13%

24%

38%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Employment and Training

Education

Law and Advocacy

Social Services

Housing

Umbrella bodies

Health

Development

Culture and Recreation

International

Environment

Religion

Research

Grant-making foundations

Statutory sources Individuals Voluntary sector

Private sector Internally generated National Lottery

Local government funds much of this PSD activity…

Proportion of VCOs in each localauthority that receive statutory income, 2006/07 (%) (quintiles)

…so access to statutory income (and PSD?) varies according to where VCOs are based…

The State(Public Agencies)

The Market(Private Firms)

The Community(Households,

Families)

Associations(Voluntary/non-

profit Organisations)

Non

-pro

fit

For-

pro

fit

Formal

Inform

al

Public

Private

T h i r d

S e c t o r

Key: Mixed Organisations/ Institutions:Source: Evers & Laville, 2004

Where next?

Discussion points

• Role of charities of wider vol orgs?• Public spending: a larger slice of a smaller cake? • The inevitable challenge of scale• Organic growth, new floorspace and new

entrants/hybrids• Are we moving towards Lester Salamon’s concept of

how the state and the sector work?