Charities call for funding protection

20 Apr 10
Third sector leaders have appealed for protection from spending cuts as figures today revealed the increasingly central role voluntary bodies play in providing public services
By David Williams

21 April 2010

Third sector leaders have appealed for protection from spending cuts as figures today revealed the increasingly central role voluntary bodies play in providing public services.

Research from the National Council for Voluntary Organisations shows that charity income from providing statutory services has more than doubled in less than a decade. Charities earned more than £9.1bn from these in 2007/08, up by 128% on 2000/01.

Charities providing education, law and advocacy, social services and housing services all relied on government spending for about half their income on average. Meanwhile, employment charities received 70% of their income from public funds.

NCVO chief executive Stuart Etherington said the data underlined the importance of specialist organisations with detailed knowledge of service users.

‘We should not be seen as a cheap or fluffy addition to core services,’ he said. ‘Our work is with some of the most vulnerable and disadvantaged people and communities in the country and they stand to lose the most if vital services are cut.’

Ralph Michell, head of policy at the Association of Chief Executives of Voluntary Organisations, told Public Finance that the ongoing general election campaign gives the sector reasons to be optimistic.

Charities see health care as a potential growth area, he said. Acevo is in talks with NHS chiefs over how voluntary organisations could help the Department of Health meet its goal of saving £15bn–£20bn by 2013/14.

‘All the main parties see the third sector as core to achieving what they want to achieve – they talk about it in a way that’s not marginal, but key to making things happen,’ said Michell.

But he said there was still a lack of detail about exactly how the third sector could be more fully involved in public services. He added that there was a danger that public sector chiefs could reverse the trend as budgets begin to shrink.

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