March 2009 - WIC's Feedback from Service Users and Partners: Economic Down Turn Section

Please see the below for the Economic Downturn section of our March 2009 Feedback from Users and Partners:

In March 2009, with funding from Capacitybuilders, we commissioned a  limited survey of WIC’s service users and partners to gain feedback on the Consortium’s
activities in 2008/9. The information gathered is intended to inform WIC’s Strategic and Business Plans for 2009/10.

A pool of fifty contacts was developed predominantly from the voluntary and community sector. 22 organisations were surveyed over a week; 18 voluntary and community organisations and 4 statutory sector partners. Below are the sections from the feedback that relate directly to economic downturn.

3.5 Economic downturn - response from Service Users

14 out of 18 respondents said that their organisation is being affected by the economic downturn. Virtually all are being squeezed financially. Charitable giving is down for most organisations that rely on it. Funding form charitable trusts appears to be drying up and competition for scarce resources increasing. One organisation that sells to the public has seen sales reduced by 5% in the last few months. One organisation has made staff redundant and reduced hours for other staff. Advice organisations have seen demand rise by at least 10% in the last few months.

“There has been a slippage in funding. We used to ask clients to make a contribution for counselling which was gift aided. We have now imposed a formal charge.”

Two organisations cited one charitable trust that had regularly supported their activities, but which has now changed its criteria and will only fund activity in areas at the top end of the Indices of Multiple Deprivation. Local authorities appear to be tightening their budgets although the biggest impact on the sector has been in the change in procurement practice. A perceived move towards countywide provision through single agencies or consortium bidding has put pressure on budgets and particularly on small, local organisations.

“Charitable trusts are over-subscribed. It is difficult to diversify funding. The
procurement process has put additional pressures on already stretched VCS groups.”

“We have cut back on some of our recreational activities for users because we don’t want to charge more. Our sense is that day to day giving is reducing.”

Suggestions for how WIC can support organisations include continuing to provide regular information about funding opportunities and information about how organisations can diversify and develop more enterprising activity in a tough economic climate. A number of organisations also felt that WIC could work to ensure that local authorities understand the pressure VCS organisations are under and work together with the public sector to support the sector where it can.

“WIC need to lobby the local authorities about the pressures VCS organisations are facing and their (LA) responsibility to maintain core funding so organisations can survive the recession. Without core funding, organisations cannot secure match funding, there is no leverage. There is a fear that small organisations will go to the wall and larger organisations either locally based or from outside the area will take on a wider client profile. In the long term this will reduce choice for users and availability of specialist support for vulnerable people.”

“WIC could facilitate a dialogue between the VC sector and the statutory sector about the financial hits local authorities are likely to take and how this can be managed. We need to recognise that we are all having a tight time.”

“There needs to be more and better articulation of the value of the VCS in economic terms and more focus on practical measures to help the sector through the recession."

4.5 Economic downturn - Partners

District based respondents felt that the climate is affecting the way they work with the
voluntary and community sector. One respondent reported that they are trying to
empower the sector to take on more services and have reduced the grants budget. One commented that they are developing their grants policy along the line of Worcestershire’s Investing, Shopping and Giving approach and are looking to VCS organisations to recognise their priorities and bid appropriately.

One respondent felt that the economic downturn is making it harder for VCS groups to
engage in the delivery of LAA targets due to cuts in staff and service. This is also affecting the capacity of VCS organisations to engage in representation work and partnership activity. Support to the voluntary sector in the economic downturn is being developed. The Voluntary Sector Support Unit is working with Worcestershire Partnership to look at the national hardship fund for VCS organisations and whether funds can be accessed for Worcestershire organisations.

The Economy Watch Task Force is aiming to support businesses and voluntary
organisations. However, the recent event was heavily focussed on business. VCS groups were put into a separate workshop and feedback from the event suggests that they would have preferred to be linked with business activity. It is felt that WIC could do more to raise sector issues with the Task Force.

5.4 The Economic Downturn - Observations

Reducing funds from charitable trusts and charitable giving means it is unrealistic of
statutory sector partners to assume that voluntary organisations can continue to make up shortfalls in funding from such sources. Equally the voluntary sector cannot expect to be protected form the budget cuts that local authorities are likely to receive. Both statutory and voluntary organisations are feeling the pinch financially and will need to work together to find ways to manage the impact on services to vulnerable people.






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