nfpSynergySummer Insights

Wednesday 16th June 201020 Cavendish Square

State of the Third Sector 2009Michele Madden

Key points

• Fundraising is the key skills gap and challenge

• Successful investment in the sector is not just about money

• Organisational size affects views of the sector

• Survive or thrive

• What does the new government hold?

What are the three biggest challenges facing your organisation? Please pick the top 3

Base:618State of the Third Sector Survey, 2009, nfpSynergy

47%

31%

26%

22%

13%

14%

22%

48%

76%

0% 20% 40% 60% 80% 100%

Finding and keeping volunteers

Attracting high quality staff

Keeping high quality staff

Sorting out our back office functions (eg IT, finance,etc)

Securing funding from government

Creating an effective board

Communicating the importance of our work

Growing our voluntary income

Creating a sustainable funding base

Biggest Challenges for Charities

10%

18%

19%

19%

21%

22%

22%

23%

24%

24%

26%

30%

31%

32%

34%

34%

42%

0% 10% 20% 30% 40% 50%

Service delivery

User perspective

Financial management

Management

Human Resources

Campaigning

Internal Communications

Information Technology

Leadership

Legal expertise

Evaluation skills

Web/Digital Media

External Communications or PR

Marketing

Governance/Trustees

Strategic planning

Fundraising

Base:585State of the Third Sector Survey, 2009, nfpSynergy

Which five of these skills or expertise are you finding in short supply, or would ideally like to have more of, in your charity?’

Biggest Challenges for CharitiesSkills

Theme 1: Funds, funding and fundraising really matter

• Many of our charity respondents were concerned with the need to make ends meet

• The sector wants to grow other sources of income in order to make up the shortfall from government

• Promotion of volunteering has received a healthy dose of funds, while fundraising development has received negligible funds

• This will need to be redressed

65%

54%

53%

17%

27%

47%

21%

30%

64%

73%

0% 20% 40% 60% 80% 100%

The National Compact

Local voluntary sector Compacts

Office of the Third Sector

Ministerial interest in the Third Sector

The Charity Commission

Promotion of volunteering

Futurebuilders

Capacitybuilders

Big Lottery Fund

Gift Aid

Impact for better

Money to the Sector

Supporting the Sector

‘Please tell us which government initiatives relating specifically to the third sector you think either have had, or will have, the biggest impact on your charity.’

Base:653State of the Third Sector Survey, 2009, nfpSynergy

Perceived impact of Government initiatives

Theme 2: The sector needs ideas as much as investment to thrive

• Initiatives which make a broad and high-profile contribution to sector funding have been the most positively received - Gift Aid Big Lottery Fund

• Charity Commission, the Compact and Capacitybuilders all have a

disproportionately positive response for the level of their funding

• A positive image doesn’t always mean that they have been successful

• How can initiatives be created and supported which benefit the sector, without simply handing out more money?

• Non-profit organisations are based on ideas that will make a difference, and the sector needs a few more of these in the decade ahead.

17%

28%

47%

60%

51%

62%

28%

38%

71%

73%

17%

17%

52%

54%

55%

66%

19%

19%

64%

85%

68%

62%

33%

20%

46%

33%

18%

54%

58%

63%

0% 20% 40% 60% 80% 100%

The National Compact

Local voluntary sector compacts

Office of the Third Sector

Ministerial interest in the third sector

The Charity Commission

Promotion of volunteering

Futurebuilders

Capacitybuilders

The Big Lottery Fund

Gift Aid

More than £6m

£1-5m

Less than £1m

Money to the Sector

Supporting the Sector

Base: 272 charities with turnover less than £1m, 137 £1-5m, 151 more then £5mState of the Third Sector Survey, 2009, nfpSynergy

‘Please tell us which government initiatives relating specifically to the third sector you think either have had, or will have, the biggest impact on your charity.’ – Impact for the better

Perceived impact of Government initiatives By size (annual turnover)

76%77%

74%

61%

75%

77%

80%

63%

47%

54%

33%

45%

54%

18%

15%

46%

17%

26%

51%

60%

61%

47%

52%

63%

58%

58%

65%

26%

46%

26%

0% 20% 40% 60% 80% 100%

ACF (Association ofCharitable Foundations)

CFDG (Charity FinanceDirectors Group)

NAVCA

Directory of SocialChange

ACEVO

Fundraising StandardsBoard

CAF (Charities AidFoundation)

NCVO

Sector press

Institute of Fundraising

More than£6m

£1-5m

Less than£1m

‘There are a lot of sector and infrastructure bodies in the third sector. Please tell us which have the biggest impact on you and your work.’

Base: 258 charities with turnover less than £1m, 132 £1-5m, 144 more then £5mState of the Third Sector Survey, 2009, nfpSynergy

Impact of infrastructure bodies By size

Theme 3: The size of an organisation has a huge impact on how it sees the world

• The size of an organisation affects its concerns and experiences

• Perceptions of government initiatives and perceptions of the impact of third sector bodies were highly dependent on the size of the respondent’s organisation

• Many stakeholders in the sector, who have very different needs

• Very few initiatives or activities will affect all organisations equally

• Being clear about who can and should benefit from an initiative is key to ensuring its effectiveness

21%

15%

8%

14%

10%

18%

18%

8%

3%

9%

21%

24%

20%

12%

11%

0% 10% 20% 30% 40% 50%

Had to deliver differentservices or change mission

Had to cut services

Had to cut jobs

Altered structure ordownsized

Reduced income

More than £6m

£1-5m

Less than £1m

The recession has had an impact on the third sector in a range of ways. We want to find out the different ways in which it has impacted on your organisation.

Base: 278 charities with turnover less than £1m, 139 £1-5m, 156 more then £5mState of the Third Sector Survey, 2009, nfpSynergy

Impact of the recession By size

Theme 4: The struggle to survive and thrive

• Accessing and sustaining a stable source of funding is the main

concern for small organisations, while large organisations are more

concerned with growing or sustaining voluntary income – how can

this happen in an era of recession and public spending cuts?

• Small organisations have a special set of needs

o least likely to be reached by sector bodies

o income is most affected by the recession

o while large and mid-size organisations may struggle to grow,

small organisations struggle to survive

Theme 4: The struggle to survive and thrive

• Need clear ideas as to how such organisations can be supported

from survival to flourishing

o painful (forced mergers)

o difficult (the creation of shared back office functions

o radical (sharing peripatetic fundraising support advisors)

• All organisations need to work smarter, to do more with less, and

to see government as providing a level playing field rather than

funds

46%

40%

43%

30%

13%

15%

15%

10%

18%

23%

33%

44%

48%

63%

46%

40%

34%

56%

15%

9%

18%

0% 20% 40% 60% 80% 100%

It would be best for the sector if the Conservatives areelected in 2010

It would be best for the sector if the there is a hungparliament in 2010

It would be best for the sector if the LibDems areelected in 2010

I agree with the Conservative goal of helping the sectorto stand more strongly on its own feet

I agree with the Labour approach of being'interventionist and supportive'

It would be best for the sector if Labour is elected in2010

The Labour Government has done a lot to benefit thesector in the last 12 years

More than£6m

£1-5m

Less than£1m

‘What difference do you think politicians have made and will make to the sector?’ Agree + Strongly agree

Base: 276 charities with turnover less than £1m, 139 £1-5m, 154 more then £5mState of the Third Sector Survey, 2009, nfpSynergy

Sector opinions on politics By size

Theme 5: The sector is uncertain about the Conservative party

• Third Sector has felt positive towards the Labour government, and would have liked another Labour government going forward

• The stance of the Conservative party regarding the third sector has changed - interested and engaged in the sector, it is as much for its potential to deliver Conservative policy ideas- see it flourish in its own right

• Until a new government is in place it is hard to know what the future will hold- budget deficits- recession - coming decade will be very different

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