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Third sector access to finance

The research organisation SQW Limited published a report of its research into third sector access to finance in May 2007. The research was commissioned by the Office of the Third Sector to feed into policy development within which it was carrying out the third sector review. The findings of the report aim to help improve understanding of current and potential future demand for external finance to support the establishment and development of third sector organisations.

The study reports that the third sector is facing a significant transitional period where many organisations are moving from grant funding to contract-based income or to more independent income generation and debt finance.

It also reports that debt finance is still widely perceived to be high risk, and that use of equity is non-existent.