Uncertain times for public funding
So, what is going to happen to statutory funding of the voluntary sector in the coming years? This is one of the most important questions for the sector at present yet unfortunately there is no simple answer. However, let’s consider some of the issues:
- Political pressure to restore the finances of the nation is acute, but balancing this is continued pressure to maintain economic stimulus through spending
- Local Authorities that currently provide a substantial element of public sector funding for charities are facing substantial budget cuts. The impact will undoubtedly be highest amongst services that they do not have a statutory requirement to deliver
- Looming general elections could see a change in Government. Both Labour and Conservatives state a commitment to support the voluntary sector and utilise them to deliver public services. However whichever party wins next years General Election may find this commitment hard to deliver in practice.
- The agenda to ensure all public procurement is open and competitive continues to put long term grant recipients at risk while also creating opportunities for others
- The agenda towards personalised budgets is putting block grant and contract recipients at risk but again creating opportunities for some
Those are just some of the issues that need to be considered. It is however clear that those charities that depend on a limited number of grants or contracts from statutory agencies need to ensure they are prepared for change. Although the level and nature of public funding cuts is unclear at present, we are facing a period of rapid and substantial change to statutory funding of the voluntary sector.
Ok, so there’s quite a lot to worry about but don’t bury your head in the sand and hope it will all be ok! It is important to take steps to mitigate potential future risks. Here are a few positive steps you can take now:
- Analyse the breakdown of your income and consider the potential risks and impact of losing any of your key funding streams;
- Talk to your commissioners and find out what changes they anticipate;
- Talk to your service users and make sure you are meeting and exceeding their expectations. If you don’t do so already ensure your service users are engaged in the planning and development, monitoring & evaluation of all of your services
- Identify potential changes to future funding that may affect your organisation
- Consider how these potential changes will impact on your organisation
- Assess the positive changes you can implement now to avert future risks.
For organisations that are effective, efficient and committed to their work and their service users, there is every reason to be optimistic. Despite the risks, the future offers many opportunities for the voluntary sector. Those that are proactive and well managed have every opportunity to flourish.
