There's a big debate among those observing the impact of cuts and 'Big Society' about what's happening to the voluntary sector, and whose fault that is. Some say that the Government should stop Local Authorities and PCTs from cutting any charity's contracts, something David Cameron is unlikely - and actually unable - to do.
Others, like Mary Dejevsky, writing here in the Independent recently, think that charities should be wholly funded from donations and that there is something 'uncharitable' about accepting contracts from the state to deliver services.
I don't agree entirely with either position. It's unrealistic to think the voluntary sector can be wholly protected from the harsh economic environment the rest of the country is trying to weather. It's equally unrealistic to think that the public has the money, will and vision to fund everything that charities deliver so well for their beneficiaries.
And let's not forget that the third sector has transformed the way many services are now delivered through our innovation and example - our contracts are awarded because funders believe we're the best organisations to deliver their services, and they learn from what we do.
But for the voluntary sector, this recession has a very long tail. Our recession began when the housing market froze, and our legacy income froze with it. (People didn’t stop dying, but executors couldn’t dispose of estates) Low interest rates have meant less money for charitable Trusts to disburse, and companies have turned much of their charitable budgets into time off for staff to volunteer. That’s welcome support, but it doesn’t pay the bills.
The private sector may be beginning to see the green shoots of recovery, but charities with statutory funding are now facing the second wave of pressures on income. It’s been well documented that the volutary sector is being hard hit by some Local Authorities and PCTs seeking to pass cuts in their budgets down the chain.
And what about the famed generosity of the British public that charities have come to rely on so heavily? We're still giving, but donations from individuals are also now being hit. A friend said to me recently, “I don’t know anyone who isn’t either redundant, at risk of it, or worried they’ll be next. Everyone’s hanging on to every penny they have, and donating to charity is a long way down the list.”
What is most worrying is that that at the same time, life for many of our beneficiaries is getting more difficult day by day. We know that the recession hits our beneficiaries – the most vulnerable in society – the hardest, while limiting our ability to help.
So as we worry about how to continue to support our beneficiaries, about funding and redundancies, let's remember that many charities were born in difficult times. We're a resilient sector because of the vision, strength and passion of our colleagues and volunteers, our members and supporters. One way or another, we'll continue to support our beneficiaries and each other as we go through - and survive - these difficult days.
