VONNE

Surviving not Thriving

Newcastle CVS currently running the Surviving not Thriving survey

Newcastle CVS is working closely with VONNE to monitor the impact of the spending cuts on the voluntary and community sector in the North East.

If you are a third sector organisation operating in the Newcastle area please fill in the survey.

The survey closes at 4pm on Tuesday 31st January.

VONNE has been running the surviving not thriving surveys since 2009, and is currently working on case studies, with the next region-wide survey to take place in the summer. The Millfield House Foundation has funded some additional work and the research will focus on particular geographic areas, one of which is Newcastle.

It is important to have a strong and thriving voluntary and community sector and VONNE has previously used the results from surveys to lobby for additional resources and campaign to highlight the importance of what we do and the impact on those we support.

Latest results from Surviving not Thriving survey - August 2011

During summer 2011, VONNE in partnership with Newcastle Council for Voluntary Service undertook the fifth survey in our continued monitoring of the impact of the economic downturn on the North East's third sector. In the 6 months since the last survey, North East communities and the voluntary and community groups that support them have been hit harder than ever by the continued economic downturn and the current round of public sector spending cuts.

120 organisations responded to the survey representing a broad cross section of third sector organisations in the region, from small neighbourhood groups to large national enterprising charities. Respondents operate right across the region covering every local authority. Between them they supported over 600,000 individuals in the North East, and over 7000 organisations. They employ over 4000 people and rally 50,000 volunteers.

Headline figures

Over the past 6 months respondents said:

73% have seen a decrease in funding
40% have lost staff
59% have experienced an increase in demand for their service
64% are using reserves

Future prospects continue to look bleak:

48% expect to, or are considering closing a service
28% will be, or are considering reducing the number of beneficiaries they support
23% may close in the next 12 months

Sources of funding

There continues to be a heavy reliance on public sector funds, with 81% of respondents sourcing some, or all, of their income from public sector grants. 64% are now using reserves, this is almost double the amount reported in November 2009.

Tracking responses over the years

As this is the fifth survey we now have a body of evidence dating back to Spring 2009. Some worrying trends emerge. There has been a steady rise in the numbers reporting a decrease in funding, now at an all time high of 73%. The numbers of staff being lost has also headed in the same direction with 40% now having lost staff in the past 6 months, compared to 26% in November 2009. There are also deep concerns about the numbers now utilising their reserves with 64% doing so, nearly double the amount doing so 2 years earlier.

It is clear that third sector organisations have faced the brunt of cuts as predicted in earlier surveys. Organisations are facing continued rising demand, but with public sector spending cuts, decreases in funding from trusts and foundations and depending on reserves, they are now in a very fragile state. In 6 months time many organisations in the sector may no longer be robust enough to survive.

As ever the story isn't really about the organisations that completed this survey. It is about the vulnerable people they support in their communities and how they will cope without those organisations and services there provide that help. Despite the loss of staff, services and funding the results show that in the last year those 120 organisations supported well over a half million beneficiaries. It is the impact on those individuals that will be the key issue facing the region in the next 12 months.

Download report with Case Studies (286kb PDF)

How we've used the previous survey results

We will be sharing these results with a wide range of stakeholders and policymakers. The previous results from our series of Surviving not Thriving surveys have been a powerful tool in lobbying for more support for your organisations and beneficiaries.

Not only have the survey results resulted in widespread press, TV and radio coverage they have also been used in the following ways:

Lobbied for a Transition Fund which was eventually implemented by Government.
Report sent to all North East MP's, selected Government ministers and department contacts.
Widespread media coverage both regionally and nationally.
The Regional select committee (North East MP's) raised questions on the results of the survey with the Regional Minister, which led to him writing to HM Treasury to lobby for continuation of the Real Help support programme beyond March 2010.
The Targeted Support Fund used the findings to directly target areas of most need.
VONNE contacted by the Home Office via GONE to look at what support could be implemented at a national level which could support third sector organisations in the region.
The results were used by BBC Local Radio to inform their series of programmes on the potential impact of public sector spending cuts in the North East, with a particular focus on third sector organisations.
Results presented to the regional Skills and Employability Response Group, and the regional network of Local Authority scrutiny officers and members to highlight the issues of the sector and encourage more dialogue.
Organised event to inform the region's third sector of support available to their beneficiaries from mainstream public sector bodies. Event took place on July 2009 and was attended by over 100 individuals.
Articles in Regeneration and Renewal and NCVO's Engage magazine.
Survey results have informed the development of the North East Third Sector Action Plan.

Previous Surveys

Winter 2010 Survey Results - Surviving in a Big Society

During Winter 2010 VONNE took the fourth survey into our continued monitoring of the impact of the recession on the North East's voluntary and community sector. Running through all of the previous studies was an underlying sense that things would be difficult but the majority of organisations would survive the challenges.

With our fourth survey, 'Surviving in a Big Society', the evidence is clear that the optimism has been greatly eroded. Organisations are reporting serious difficulties now, with a fragile future in store. The heavy reliance on public sector funding is likely to lead to large scale closures of services, loss of skilled staff and the ultimate closure of some organisations, when the cuts bite over the next few months. This is at a time when demand for services has never been higher. VONNE warns that the most vulnerable in communities are likely to suffer as services are lost.

Headline figures

Of the 141 organisations who responded:

62% have seen a decrease in funding
Over a third have made staff redundant
Nearly half are using reserves
69% have experienced an increase in demand for their service

The future prospects look bleak for many:

64% expect to, or are considering closing a service
50% will be, or are considering reducing the number of beneficiaries they support
26% may close in the next 12 months

Medium-sized organisations appear to be struggling most:

86% are using reserves
42% may close their organisation

Worse to come - public sector cuts

88% of respondents source some, or all, of their income from grants given by the public sector and 82% from grants from charitable organisations.

Download full survey results (PDF 469kb)

Spring 2010 Survey results - Who will Survive or Thrive past 3/2011?

During spring 2010, VONNE undertook the third survey in our continued monitoring of the impact of the recession on the North East's voluntary and community sector (VCS). During the course of the survey the political landscape changed dramatically, and as the survey results show, the public sector budget cuts have the potential for significant impact on the sector in the region.

Stand-out figures include:

78% of respondents have seen an increase in demand for their services
51% of respondents have seen a decrease in their annual income
92% of respondents receive some or all of their income from the public sector.

Download the results of the survey in our briefing note (Word164kb)

November 2009 Survey results: Still Surviving NOT Thriving

Six months after Surviving Not Thriving we undertook a follow up survey. The results show that our sector is responding to the recession increases in services to meet the additional demand, but a large proportion may struggle to survive it.

The last report, Still Surviving Not Thriving, on the continued impact of the recession on the third sector in the North East can be downloaded here:

Still Surviving NOT Thriving (PDF 1.4MB)

Short briefing note on latest survey results (PDF 109kB)