Survey of local third sector

support providers  

Fifth report
This is the fifth and final report in a series of surveys set up in 2009 by
Capacitybuilders to track the impact of the economic downturn. The surveys
provide valuable information on the sector during a time of considerable change,
both for frontline civil society organisations and those who support them.

Capacitybuilders 77 Paradise Circus Birmingham B1 2DT

T +44 (0)121 237 5100 E info@capacitybuilders.org.uk www.capacitybuilders.org.uk
 Survey of local third sector support providers
Fifth report
 

Contents
 

1. Introduction
2. Key Findings
3. Conclusion
 Survey of local third sector support providers
Fifth report
 

1. Introduction
Capacitybuilders has completed its fifth and final survey of local civil society
support providers. Begun in April 2009, this series of surveys has sought to
understand how support providers (infrastructure organisations) have been
affected by a period of significant political and economic change.

Each survey has covered the following areas:

• changing patterns of demand for support services

• changes in income
• organisational responses to the recession
• the impact of current economic challenges on wider civil society
• expectations for the future.

The five surveys have been conducted at roughly six month intervals. 1

                                                        
1
Survey 1 – May 2009; Survey 2 – October 2009; Survey 3 – April 2010;
Survey 4 – October 2010; Survey 5 – February 2011
 Survey of local third sector support providers
Fifth report
 

2. Key Findings
2.1. Demand for services
The survey results show that the vast majority of support providers continue to see
an increase in demand for their services from frontline voluntary and community
organisations. Previous surveys suggested that support providers had been able to
deal with this increased pressure on resources. While a significant proportion (45%)
still indicate that they are coping ‘well’ or ‘very well’ with increased demand, this is
the lowest proportion reporting this from across each of the five surveys. Perhaps
this is an indication of the challenging environment in which infrastructure
organisations are operating.

Table 2.1.1 Proportion of support providers reporting increased demand for

services over the last 12 months

Survey 1 Survey 2 Survey 3 Survey 4 Survey 5

78% 79% 82% 85% 84%

2.2. Income
Results from the latest survey show significantly more support providers have
reported a reduction in income over the last 12 months, compared to those that have
seen their income rise.
 Survey of local third sector support providers
Fifth report
 

Chart 2.2.1 Change in overall income in the last 12 months

60%
56%

50%
42%
40% 44%
40% 38%

34%
36% Decrease
%

30%
Increase
28%
22%
20%

14%
10%

0%
Survey 1 Survey 2 Survey 3 Survey4 Survey 5

While it has fluctuated, this gap has widened considerably since Survey 3 in April
2010. The latest survey results show four times as many respondents reported a fall
in income (56%), while only 14% saw their income grow during the same period.

In addition, the gap between the biggest ‘winners’ and ‘losers’, i.e. those that have
seen a significant change (+ / - 15%) in their overall income over the last 12 months,
has grown wider. Over a quarter of support providers (29%) have reported significant
loss of income. In contrast only 5% saw a significant increase.

Table 2.2.1 Survey 5 data showing change in overall income over the last 12
months
Significantly decreased (> 15%) 29%
Overall decrease 56%
Slightly decreased (5% – 15%) 27%

Remained the same (+ / - 5%) 31% No significant change 31%

Slightly increased (5% – 15%) 9%

Overall increase 14%
Significantly increased (> 15%) 5%
 Survey of local third sector support providers
Fifth report
 

Chart 2.2.2 (see below) allows us to look more closely at how local support providers
have been affected by changes to specific income streams.

Chart 2.2.2 Percentage of support providers reporting a

reduction in specific income streams

50% 46%
45%

40% 37%
35% 33%
31% 31% Survey 1
28% 28% 28%
30% 26% 26% Survey 2
25% 22% Survey 3
20% 19%
20% Survey 4
15% 16%
Survey 5
15%
10%

5%
0%
Local Govt. Grants / Trusts National Govt.
%

The chart suggests that respondents are increasingly being affected by reductions or
loss of funding from three key sources - Local Government, Grants / Trusts and
National Government Departments:

• nearly half (46%) reported cuts in funding from local authorities – more than double
the proportion from Survey 1
• a third (33%) have received a reduction in income from grant giving bodies / other
trusts
• just over a quarter (26%) report funding cuts from National Government
Departments.
 Survey of local third sector support providers
Fifth report
 

While many support providers across England have clearly been affected by
reductions in public spending already, it is likely that funding decisions, particularly in
local authorities, have yet to be made.

As such, it is possible that even more support providers will either lose – or receive
significantly less – funding over the next spending period. Similar to findings from
Survey 4, there is very little optimism with regard to short-term future income. More
than three quarters expect their overall income to go down during the next 12
months; only 8% feel that it will increase (see Chart 2.2.3).

Chart 2.2.3 Expected change in income over next 12 months

80% 75% 76%

70%

60%

50% 48% Survey 1

46%
44%
Survey 2
40% Survey 3
Survey 4
30% Survey 5
19%
20% 15%
13%
7% 8%
10%

0%
Decrease Increase

A significant proportion of support providers have looked at options around

generating funding for themselves. Results from the latest survey shows that nearly
a third (31%) reported an increase in earned income over the preceding 12 month
period – more than double that from Survey 1 (14%). However, whether this is
sufficient to offset the reduction in funding from other sources was outside the remit
of this survey.
 Survey of local third sector support providers
Fifth report
 

2.3. Actions taken by support providers

Local support providers are taking, or have taken, a range of different actions to
mitigate the impact of a challenging economic situation, while ensuring that services
remain accessible to frontline voluntary and community sector organisations.

Chart 2.3.1 Percentage of support providers taking certain

actions

12%
Cutting staff
52%
Increasing 49%
collaboration
48%
26% Survey 1
Targeting services Survey 2
36%
8% Survey 3
Reducing services Survey4
31% Survey 5
Providing new 38%
services 30%
13%
Planning merger
21%

0% 10% 20% 30% 40% 50% 60%

%

Chart 2.3.1 shows a significant increase in the proportion of infrastructure

organisations which have had to reduce staff numbers over the last few months – up
from 28% in Survey 4, to 52% in Survey 5. ‘Cutting staff’ has now overtaken
‘increasing collaboration’ as the most common action being taken by local support
providers in response to funding cuts.

The chart also shows that just over a fifth (21%) have completed or are planning a
merger.
 Survey of local third sector support providers
Fifth report
 

3. Conclusion
The full effects of the recession are only now beginning to be fully felt by support
providers. More organisations are taking action to respond to a rise in demand for
their services and a fall in their income. We hope this can sustain basic services for
civil society organisations most in need of support, so that they in turn can help their
communities deal with the impacts of the recession.