Westminster’s voluntary groups “not aware” of the threat posed by the recession and future spending cuts, according to a new VAW report.

Download The Recession Yet to Come

Four threats

The report identifies four main threats facing local voluntary and community organisations:

• Cuts in public spending following the 2009 financial crisis
• Increased numbers of people using services as the recession begins to bite
•  The growing use of a free market approach to commissioning and procuring public services
•  The move to personalised health and social care services

“Any one of these issues in isolation would present a significant challenge. Taken together, there’s the threat of real damage to the local voluntary sector,” said Bernard Collier, Chief Executive at VAW and author of the report.

Many groups unaware

But with the years ahead looking increasing threatening, many local voluntary groups are unaware of the potential risks to their organisation. “We found little evidence that organisations are thinking strategically about how their organisation will be affected, and how they can best respond,” said Bernard.

Threat to medium-sized organisations

The report suggests that medium-sized organisations, with an income of £25,000 to £1million, are particularly vulnerable. More reliant on grant funding than their larger cousins, medium-sized organisations risk being hit hard by any cuts in grant spending. “These groups play a vital role in building strong local communities, and bring in significant amounts of external funding. That’s why VAW is so concerned about the threats they face.”

Planning for the future

Planning now is the best way of navigating the challenges ahead, according to Bernard. “Organisations need to think carefully, and radically, about how their organisation will deal with the challenges ahead.” The report recommends that local voluntary groups:

• Be clear about their reason for existing: what need do they serve?
• Look afresh at what organisational form will best achieve their aims
• Think about what extra they can offer service users, in an increasingly competitive market
• Find funding from a variety of sources, including through earning income through trading.

Support

Local support organisations like VAW have an important role to play in supporting voluntary groups to plan for the future. “VAW can offer a range of advice on strategic planning, fundraising and social enterprise. All are free, and tailored to the needs of local groups.”

Contact

For more information about how Voluntary Action Westminster could help your organisation, contact us on 020 7723 1216 or email general@vawcvs.org