Throughout the course of the pandemic many people have been reliant on the voluntary and community sector to provide support. With local authorities stretched, services in higher demand than ever and individuals making use of support in greater numbers than ever before, the voluntary, community and social enterprise (VCSE) sector has been a lifeline for many.
However, the sector is not immune from the pressures caused by the pandemic. They themselves have been stretched with demand for services increasing, and with income streams having beeen limited many are now facing significant challenges to survival.
The same storm but different boats
The VCSE sector is a varied and vibrant sector, often providing bespoke and specialist support to people in greatest need. Diverse, specialised and adaptable, the sector was quick to respond and able to offer support at the outset of the pandemic. But the sector has also been shown to be vulnerable in the face of tightening finances, reduced volunteer availability and increased demand for services.
Research carried out by NCVO in March 2021 reported that charities and the voluntary sector have had vastly different experiences during the coronavirus pandemic, with the impact of the pandemic being reported across the sector as “uneven and unpredictable”. The research showed that while some organisations have expanded their service offer, others have seen their income shrink drastically, or have found delivering services increasingly difficult due to the restrictions being imposed during the national lockdowns.
Key findings from the research include:
- Nearly half (46%) of those surveyed reported demand on their services increasing, versus just 19% seeing a slowdown.
- 35% say their costs have increased in the past year, while for 34% they have decreased.
- 46% of organisations have had to use their cash reserves to cope with the impact of covid-19 on their organisations.
- 44% of respondents say they could rely on their cash reserves for more than six months, while 9% either have no cash reserves or not enough to last them a month.
A report by Equally Yours, commissioned by the Funders for Race Equality Alliance in April 2021 highlighted the challenges facing the Black and Minority Ethnic voluntary and community sector. This sector has historically experienced specific challenges (such as a high number of organisations being eligible to apply for only a small number of available funds). The research suggests that the pandemic has exacerbated their financial pressures, but also highlighted other challenges, such as regional inequalities in the availability of funding and support, the precarious position of many smaller charities and voluntary organisations who have not been able to access government support, and the challenges of short-term funding, which makes it difficult to create long term plans.
These sentiments were echoed in a separate report from researchers at Centre for Regional Economic and Social Research (CRESR) which looked at the value of smaller charities in responding to the crisis.
A new-found appreciation for the sector
The voluntary sector made up a key part of the UK’s economy before the pandemic, not only as businesses and specialists within their fields, but also as part of the wider fabric of the communities in which they operate. Many within the sector would probably argue that they were not valued enough. Their expertise, flexibility and resilience in the face of challenging funding environments, have characterised the sector long before the pandemic.
During the pandemic, collaboration has been essential. In many areas the VCSE sector have been part of the vanguard of support for the most vulnerable in society, helping to organise local responses to the pandemic and fostering community resilience in the process.
Research published in People, Place and Policy in November 2020 observes that, at the local level, the pandemic has led to a strengthening of pre-existing ‘complementary’ relationships between the VCSE sector and local authorities, with voluntary organisations finding themselves further embedded in local systems of decision making, co-ordination and service provision. The research suggests that there is a newly visible and increasingly ‘complementary’ local role for previously ‘supplementary’ voluntary and charity-based organisations, responding to the needs of vulnerable members of the community.
Supporting the sector to move forward
Grantfinder is the UK’s leading provider of funding information for the VCSE sector in the UK. During 2020 we provided information on emergency Covid-related funding on our website and also offered all local authorities in the UK a free portal to signpost funding support to small businesses in their communities.
As the country starts focusing on recovery, we have recently launched a new funding portal that helps charities and community groups to find funding. My Funding Central is a simple to use tool, which provides users with regular news updates and tailored funding alerts. Annual subscriptions start at £50 and are free for small organisations, offering an affordable way of searching for available funding and connecting to potential funders. Over 1500 charities are already signed up and benefiting from being signposted to funding they may not have been aware of.
The impact of the voluntary sector is threaded through the wider fabric of our communities. As we come to terms with the social and economic trauma of the pandemic, these organisations will have a significant role to play. Ensuring that the sector is suitably valued and resourced will enable it to play as full a role as possible and help communities on the road to recovery.
GrantFinder and the Knowledge Exchange are part of Idox Funding and Information Services.
If you enjoyed this article, you might also like to read:
Levelling up: can charities get a piece of the action?
Pingback: Rethinking and rebuilding the voluntary sector post-pandemic | The Knowledge Exchange Blog
Pingback: The benefits of third sector research for policy and practice engagement | The Knowledge Exchange Blog