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New report shows a big increase in demand for sector support services as a result of the recession

9th July

capacitybuilders.jpgThe report published today by Capacitybuilders shows a big increase in the demand for sector support services, with 78% of support providers reporting an increase in demand for their services over the past 12 months. Over 50% of responders said that they were coping well or very well.

However, the survey also indicated concerns about longer term funding, with 47% of providers expecting to see decreases in income over the next three years.  71% are considering or implementing increased collaboration as a result of this and 38% expect to see an increase in earned income, reflecting a growing interest in a more enterprise-based business model.

The results are from the first of a series of surveys commissioned by Capacitybuilders to gather intelligence on how the economic downturn is affecting third sector support providers across England.

Angela Smith, Minister of State for the Third Sector, said:

“I welcome Capacitybuilders’ research into the impact the recession is having on the support services which give charities, voluntary groups and social enterprises vital back-up as they get on with the job of helping people in need. The findings show a strong sector facing up to the current challenges well. However, we cannot be complacent, the Government will continue to monitor the situation and direct support to where it is needed.”

Of the 289 support services surveyed the reported biggest increase in demand from frontline groups was around the topics of:

Matt Leach, Capacitybuilders’ CEO, commented:

“The  biggest message here is the unprecedented increase in demand the sector is facing,  with 78% of local support providers reporting an increase in demand for services over the last 12 months.  This highlights the importance to frontline groups of effective support and advice services at a local level.  When times are tough high quality support is more important than ever.

“The particularly high levels of demand for support on merger and collaboration, and the incredible level of interest in our Modernisation Fund – with 500 bursaries awarded in the last two weeks – shows how this is growing in importance as an issue for the sector.”

Kevin Curley, Chief Executive of NAVCA, said:

“The rise in demand for sector support services highlighted in this report demonstrates how vital local infrastructure organisations are in bringing together and supporting those affected by the recession. I am pleased, but not surprised, by the evidence that organisations are responding positively to these extra demands.”

The full report can be accessed via the link below: