LATEST DATA ON THE VOLUNTARY SECTOR 5 JULY 2017 Jack Egan - - PowerPoint PPT Presentation

ALMANAC 2017: AN INTRODUCTION TO THE LATEST DATA ON THE VOLUNTARY SECTOR

5 JULY 2017

• Jack Egan

Researcher, NCVO

• Michael Birtwistle

Public Services Policy Manager, NCVO

KEY THEMES

• Income and spending in the sector
• Net worth of the sector
• Contribution to the economy and society
• Policy implications

#NCVOAlmanac

WHAT IS THE ALMANAC?

The Almanac is a report on the state of civil society and the voluntary sector in the UK, looking at:

• Finances – Charity accounts
• Volunteering – Community Life Survey
• Workforce – Labour Force Survey

Two main products:

• Website - data.ncvo.org.uk
• Publication

Published in April/May For enquiries contact the NCVO research team - research@ncvo.org.uk

THE VOLUNTARY SECTOR IN THE UK IS DIVERSE IN TERMS OF BOTH GEOGRAPHY AND SCOPE

Key facts and voluntary sector figures

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

165,801

Voluntary organisations Most common beneficiary groups*: Children and young people

(98,110 organisations)

The elderly

(48,744 organisations)

People with disabilities

(45,978 organisations)

THE MAJORITY OF CHARITIES OPERATE LOCALLY, PARTICULARLY SMALLER ORGANISATIONS

Area of operation of voluntary organisations in England and Wales by income band, 2014/15 (%)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

2 37 60 69 78 79 81 42 26 19 13 12 2 9 7 5 4 3 14 12 8 7 6 5 Super-major Major Large Medium Small Micro Local National National and overseas Overseas

INCOME AND SPENDING IN THE SECTOR

THE LARGEST VOLUNTARY ORGANISATIONS ARE FEW IN NUMBER BUT ACCOUNT FOR 80% OF SECTOR INCOME

Proportion of voluntary organisations in the UK by number and income in 2014/15 broken down by size of organisation

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac Make up

82% of the

total number of voluntary

• rganisations…

… but account for

80% of

total income of the voluntary sector Micro/small organisations (£0-£100k) Large to super-major organisations (£1m+) …but only 5% of total income of the voluntary sector Make up just 3% of the total number of voluntary organisations…

INCREASES IN INCOME AND SPENDING SEEN LAST YEAR HAVE CONTINUED IN 2014/15

UK voluntary sector income and spending, 2000/01 to 2014/15 (£bn, 2014/15 prices)

Source: NCVO, TSRC, Charity Commission

#NCVOAlmanac

5 10 15 20 25 30 35 40 45 50 Income Expenditure

£45.5bn £43.3bn

#NCVOAlmanac

LARGER ORGANISATIONS, PARTICULARLY SUPER- MAJOR, HAVE SEEN THE BIGGEST INCREASES IN INCOME

Total income by size of organisation, 2008/09 to 2014/15 (£bn, 2014/15 prices)

Source: NCVO/TSRC, Charity Commission

4 8 12 16

Major Large Super- major Medium Micro/ small

#NCVOAlmanac

THE NUMBER OF ORGANISATIONS WITH AN INCOME OF OVER £100M IS ALSO INCREASING

Number of super-major organisations, 2008/09 to 2014/15

Source: NCVO/TSRC, Charity Commission

26 29 33 33 33 40 42

5 10 15 20 25 30 35 40 45

THE LARGEST PROPORTION OF VOLUNTARY SECTOR INCOME COMES FROM INDIVIDUALS…

Voluntary sector income sources, 2014/15 (£bn)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

45% 34% 1% 9% 4% 7% Individuals £20.6bn Government £15.3bn National Lottery £0.5bn Voluntary sector £4.0bn Private sector £1.9bn Investment £3.3bn

…AND INCREASES IN INCOME FROM INDIVIDUALS ARE DRIVING THE INCREASE IN TOTAL SECTOR INCOME

Sources of voluntary sector income, 2000/01 to 2014/15 (£bn, 2014/15 prices)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

£20.6bn £15.3bn

Individual Government Voluntary sector

£4.0bn

25 20 15 10 5

DONATIONS PROVIDE THE LARGEST SHARE OF INCOME RECEIVED FROM INDIVIDUALS

Income from individuals breakdown, 2014/15 (£bn, %)

Source: NCVO/TSRC, Charity Commission

37% 12% 30% 21% Voluntary income - donations £7.6bn Voluntary income – legacies £2.5bn

#NCVOAlmanac

Earned income – charitable activities £6.2bn Earned income – activities for generating funds £4.3bn

Earned income total:

51%

Voluntary income total:

49%

SINCE 2010/11 EARNED INCOME HAS GROWN MORE STEADILY THAN VOLUNTARY INCOME

Earned and voluntary income from individuals, 2000/01 to 2014/15 (£bn, 2014/15 prices)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

Total earned income Total donations Legacies

£7.6bn £10.5bn

12 10 8 6 4 2

£2.5bn

INCOME FROM GOVERNMENT MOVES CLOSER TO THE PEAK SEEN IN 2009/10

Government income from grants and contracts, 2001/01 to 2014/15 (£bn, 2014/15 prices)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

5.1 5.2 5.7 6.2 5.2 4.8 4.7 4.2 3.2 3.3 2.8 2.8 2.5 2.9 2.9 4.9 5.4 5.6 5.8 6.9 9.2 10.1 11.3 12.2 12.5 12.8 11.9 12.1 12.2 12.4 2 4 6 8 10 12 14 16 18 Government grants Government contracts

£15.3bn £15.7bn

THE LARGEST PROPORTION OF GOVERNMENT CONTRACTS GO TO SOCIAL SERVICE ORGANISATIONS

Government grants and contracts received by sub-sector, 2014/15 (£m)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Social services Health International Law and advocacy Employment and training Education Housing Culture and recreation Development Environment Government contracts (£m) Government grants (£m)

FOR THE FIRST TIME IN A DECADE, INCOME FROM CENTRAL GOVERNMENT IS HIGHER THAN FROM LOCAL

Government income local and central government, 2004/05 to 2014/15 (£bn, 2014/15 prices)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

1 2 3 4 5 6 7 8 9 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Central Government Local Government

£7.1bn £7.3bn

SMALLER ORGANISATIONS ARE THE LEAST LIKELY TO RECEIVE FUNDING FROM GOVERNMENT

Income from Government as a proportion of total income by size of organisation, 2014/15 (%)

Source: NCVO/TSRC, Charity Commission

16 29 33 42 29 25 50 75 100 Micro/small Medium Large Major Super-major

#NCVOAlmanac

CHARITIES SPEND THE MAJORITY OF THEIR MONEY ON DELIVERING THEIR MISSION

Spending breakdown, 2014/15 (£bn, %)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

NET WORTH OF THE SECTOR

THE NET WORTH OF THE SECTOR HAS GROWN STEADILY OVER THE LAST FOUR YEARS

Voluntary sector assets, 2000/01 to 2014/15 (£bn, 2014/15 prices)

Source: NCVO/TSRC, Charity Commission

20 40 60 80 100 120 140

#NCVOAlmanac

£112.7bn

SMALLER ORGANISATIONS ARE FAR LESS LIKELY THAN OTHERS TO HAVE FIXED ASSETS OR RESERVES

Proportion of organisations with tangible fixed assets by size of organisation, 2014/15 (%)

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

15 63 87 91 98 25 50 75 100 Micro/small Medium Large Major Super-major

44%

• f micro/small organisations

have no reserves

CONTRIBUTION TO THE UK ECONOMY AND SOCIETY

LEVELS OF BOTH REGULAR AND LESS REGULAR VOLUNTEERING REMAIN STABLE

Rates of formal volunteering, 2001 to 2015/16 (%)

Source: Citizenship Survey, Community Life Survey

#NCVOAlmanac

5 10 15 20 25 30 35 40 45 50 At least once a month At least once a year

41% 27%

HALF OF THOSE WHO HAVE VOLUNTEERED IN THE LAST YEAR DID SO AROUND SPORTS OR ACTIVITIES

Organisations/clubs/groups to which respondents who had formally volunteered at least once in the last 12 months gave unpaid help, 2015/16 (% of respondents)

Source: Community Life Survey

10 20 30 40 50 60 Sport/exercise Hobbies/recreation/arts/social clubs Religon Children's education/schools Youth/children's activities Health, disability and welfare Local or community groups The elderly The environment/animals Education for adults Safety, first aid Citizen groups Other Justice and human rights Trade union activity Politics

#NCVOAlmanac

A LACK OF AVAILABLE TIME IS A KEY DRIVER OF PEOPLE STOPPING VOLUNTEERING

Top five reasons for stopping volunteering in the last year, 2015/16 (%)

Source: Community Life Survey

10 20 30 40 50 60

Not enough time - due to changing home/work circumstances Due to health problems or old age Not enough time - getting involved took up too much time It was a one-off activity or event Lost interest

#NCVOAlmanac

IN TERMS OF HUMAN CAPITAL, THE VOLUNTARY SECTOR EMPLOYS AN INCREASING NUMBER OF PEOPLE

Number of employees in Tesco, the voluntary sector, and the NHS in 2016

Source: Labour Force Survey, Tesco, NHS

#NCVOAlmanac Since 2015, the voluntary sector’s workforce has increased by

VOLUNTARY SECTOR EMPLOYEES ARE MORE LIKELY TO BE FEMALE AND WORK IN SMALL ORGANISATIONS

Gender of employees (% of total workforce)

Source: Labour Force Survey

65% 35%

#NCVOAlmanac

THE VOLUNTARY SECTOR CONTINUES TO MAKE A SIZEABLE CONTRIBUTION TO THE UK ECONOMY…

Source: World Bank, Office for National Statistics (ONS)

#NCVOAlmanac

£22.6bn

…AS WELL AS HELPING TO BUILD A MORE SOCIAL ECONOMY

Key facts and voluntary sector figures

Source: NCVO/TSRC, Charity Commission

#NCVOAlmanac

165,801 853,000 14.2million

Workforce Voluntary Organisations People volunteered at least once a month in 2015/16

WHAT ARE THE IMPLICATIONS FOR VOLUNTARY SECTOR POLICY?

#NCVOAlmanac

WE ARE AT THE START OF A NEW SPENDING CYCLE

Index of departmental spending (RDEL) and charity government income (2007/08 = 100)

• 400
• 200

FORMAL RESOURCES FROM GOVERNMENT ARE UNLIKELY TO INCREASE, ESPECIALLY LOCALLY

EARNED INCOME IS THE KEY GROWTH AREA, AND WE NEED TO ENABLE CHARITIES TO GENERATE IT

Path of real terms donations, earned income from individuals and median household income (indexed, 2007/08 = 100)

USEFUL LINKS

Almanac website: data.ncvo.org.uk NCVO Manifesto: https://blogs.ncvo.org.uk/2017/05/0 4/ncvos-general-election-message- charities-and-volunteering-make- britain-great/