Level and sources of VCS income

Related drivers

What are the implications?

Higher expectations of evidence due to competition for funds, more strategic funding and increased involvement in public service delivery putting pressure on organisations to demonstrate their outcomes.
Additional skills and resources required for VCOs to negotiate increasingly complex procurement practices associated with government contracts.
Grantmaking trusts and venture philanthropists become more strategic in their giving and engaged with the organisations they fund.
Greater emphasis on organisations to achieve efficiency and value for money.
Increasing competition for funds.
Increasing need for VCOs to understand the full range of funding sources available to ensure a sustainable funding mix – from social enterprise to loan finance.
Increased expectation of VCOs to trade and charge for services to diversify their income sources. (See social enterprise)

Moving forward

How will your organisation cope in a difficult funding environment?

How can you meet the challenge of even stiffer competition for funds.
Are you too reliant on one source of income - how can you diversify your funding stream to reduce the risk if one source of income dries up.
Is your organisation ready to bid for and manage contracts? Do you know what is involved or where to go to find out more about the skills you will need?
Could loan finance be an option for your organisation in the future?

Earned income may help your organisation feel more in control and enable you to plan more effectively for the long term, but it can also require new skills.

Has your organisation considered the costs and benefits of earning more of its income?
What is your organisation’s attitude to earning more money? What culture changes would need to take place in your organisation if you started down this road?
How will the increased expectation of trading and charging for services impact on your organisation?

How will an increase in funders that are more strategic and engaged impact on your organisation?

How do you balance your mission with the aims of funders in order to secure funding?
Do you have a good process for deciding whether or not a funding opportunity is too far off mission?
Would your organisation benefit from a more hands-on relationship with funders and how might you handle the tensions that could result?

Want to know more?

NCVO Civil Society Almanac 2009

Published by: NCVO

Date: Spring 2009

Format: PDF

What is it? A summary of the findings from the NCVO Civil Society Almanac 2009

How useful is this? Outlines the trends in income and expenditure

Other Comments: The in-depth Almanac is available to purchase from the NCVO. The next edition will be published in Spring 2010

UK Giving Survey 2009

Published by: NCVO / Charities Aid Foundation

Date: December 2009

Format: Web

What is it? The key findings from the UK Giving Survey - an annual survey of individual charitable donations.

How useful is this? The survey covers the period of the recession. It shows that there was a major fall in the number of larger donations from members of the professions and explores other trends in UK Giving, reporting an overall fall in individual donations of 11%

Other comments:

Last updated at 11:58 Tue 19/Jan/10.

Recent comments

Subscribe to this topic by RSS

Author	Comment
about 1 month ago Tessa	In a period of recession the level and sources of VCS income may come under threat. This could result in more pressure and demands on funders and commissioners. Mental health service providers as other vcs organising may face increased competition for less funds. Providers may also be faced with looking at developing relationship with a broader range of funders than traditionally. In a time of pressure funders may be increasingly likely to look for collaboration between organisations in order to meet complex needs. Another aspect funders may find increasingly important is evidence of user involvement in the planning and delivery of services. Collaboration can be challenging. Trustees and senior staff may find it useful to consider developing their negotiation and relationship building skills. Does your organisation have a proactive strategy to approaching other organisations with potential collaborations? Would your organisation benefit form reviewing your user involvement strategy and practices? How will any change on the level and sources of vcs income affect your organisation? Do you have an up to date funding / fundraising strategy, and robust plans?

Author

Comment

about 1 month ago

Tessa

In a period of recession the level and sources of VCS income may come under threat. This could result in more pressure and demands on funders and commissioners.

Mental health service providers as other vcs organising may face increased competition for less funds. Providers may also be faced with looking at developing relationship with a broader range of funders than traditionally. In a time of pressure funders may be increasingly likely to look for collaboration between organisations in order to meet complex needs. Another aspect funders may find increasingly important is evidence of user involvement in the planning and delivery of services.

Collaboration can be challenging. Trustees and senior staff may find it useful to consider developing their negotiation and relationship building skills.

Does your organisation have a proactive strategy to approaching other organisations with potential collaborations?

Would your organisation benefit form reviewing your user involvement strategy and practices?

How will any change on the level and sources of vcs income affect your organisation? Do you have an up to date funding / fundraising strategy, and robust plans?

Join the discussion!

How will this affect your organisation? Have you considered it during your strategic planning? Can you share any interesting relevant links?