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Valuing the Voluntary and Community Sector in North Yorkshire and York

The research was carried out by the Policy Research Institute on behalf of the North Yorkshire Forum for Voluntary Organisations (NYFVO), with the support of the local development agencies in North Yorkshire and York. The research was carried out from January to June 2000. It was funded by NYFVO, North Yorkshire County Council and City of York Council, and focused on the broader voluntary and community sector, from major charities to small community organisations, across a large and geographically diverse area.

The purpose of this project was to provide detailed information about the value of the voluntary and community sector to both the social and economic life of the community. Although it is increasingly recognised that voluntary and community organisations make a significant contribution to social and economic well-being across North Yorkshire and York, there is little specific information available to facilitate an understanding of the sector's position and needs, or a full recognition of its role as a stakeholder.

  • North Yorkshire and York boasts a dynamic and vibrant voluntary and community sector consisting of at least 3000 organisations which provide a vast range of services and opportunities.
  • The sector is a major service provider in health and social care, leisure and recreation, play and youth work, education and life long learning, advice and information, environment, arts, housing, economic and community development, community safety and criminal justice, heritage and animal welfare.
  • The survey indicated that the services of the sector are used 4 million times each year (this figure inevitably includes some multiple use of services by the same individuals).
  • At least 50,000 people volunteer within the sector working a total of over 1 million hours each year. Many others volunteer with statutory agencies.
  • A further 5300 people serve as charity trustees working a total of 200,000 hours each year.
  • Nearly 12000 people are employed in the sector. A third of these work full-time which is about twice the number of those employed full time in agriculture. The total annual salary bill for full and part time staff in the voluntary sector is in excess of £55 million.
  • The total revenue income of voluntary and community organisations for the 1999/2000 financial year was in excess of £109 million.
  • The turnover of the sector is a minimum of £132 million, whilst its contribution to sub-regional GDP lies between 1.0 and 2.5%.
  • For every £1 that local authorities invest in the sector, a further £7 is brought in from elsewhere.
  • Voluntary and community organisations identify their biggest challenges as: maintaining their services for their users, coping with changing demands, finding sustainable funding, and recruiting volunteers.

The context of the research

There is increasing recognition of the value and contribution of the voluntary and community sector by the European Union, the UK government, regional and local agencies. For example, all the local authorities in North Yorkshire and York consider that the sector is an invaluable channel for community involvement in decision-making and the general well-being of the area.

At the same time there are many changes in the economy, society and policy which offer both threats and opportunities to the sector. These include increased competition for funding, a growing emphasis on contracting and value for money in service provision, and the government's promotion of working in partnership with the community.

There has been a shift in the way the sector is funded. Funding through grants has been largely replaced by more demanding contracts or service level agreements. This may cause problems for some small organisations. Voluntary organisations are frequently dependent on volunteers to provide services and there is evidence that recruiting volunteers is becoming more difficult especially in rural areas.

The overarching concern is one of capacity – the ability of the sector to continue to fulfil the increasing demands which are placed on it. This raises issues about the infrastructure in the sector, both within individual organisations and within the sector as a whole.

The voluntary and community sector in North Yorkshire and York faces an additional set of challenges by virtue of its location. Although generally there is low unemployment, there is much under-employment and many pockets of deprivation. The rural nature of much of the area leads to isolation as a result of poor public transport and service fragmentation.

Because little is known about the specific impacts of the sector locally, it has been difficult for voluntary organisations to demonstrate their full value and in particular their contribution to the local economy. The evidence provided by this survey demonstrates that the voluntary and community sector is not only a major provider of essential services, but it is also an important stakeholder in the economy of the sub-region.


The project

A mailing list was created from information supplied by the local development agencies. Following the removal of duplicated organisations, a questionnaire was distributed to voluntary and community organisations across North Yorkshire and York.

A series of focus groups was held, one for each of the local authority areas. These were used to elicit more detailed information about the key themes included in the questionnaire. A cross section of organisations, involved in a range of activities aimed at different beneficiaries, was invited. Further interviews were undertaken with officers (staff) of all the local authorities plus other public sector bodies.

The final report presents a thematic over view of the contents and a breakdown by local authority area. By taking a holistic approach including the nature of the organisations, their activities, clients, funding, staffing, marketing, partnerships, training needs and future role, a broad but in-depth snapshot has been provided, offering maximum benefit to all concerned.


The sample and extrapolation of findings

The response received to the questionnaire was slightly less than 50%. However, it is reasonable to extrapolate for the sector as a whole by doubling the information from respondents. The justification for this is:

  • The profile of organisations who did not reply is likely to be very similar to that of those who did.
  • A number of organisations not listed on the database were subsequently identified.

The figures above were reached in this way. The statistics below refer directly to the sample responding to the questionnaire.


Organisations, their activities and clients

More than half of all respondents (57%) were registered charities. Over a quarter were local voluntary organisations, whilst a fifth were branches of national voluntary organisations. 16% were informal community or neighbourhood groups which had a constitution or a set of rules, only 4% were community groups which did not.

The largest groups of organisations were involved in welfare/social care, leisure and recreation, or play/youth work. Organisations were most likely to consider their most important areas of work to be in welfare/social care, village halls, play/youth work, or leisure and recreation. The most important user groups were (respectively) elderly people, families, children under 16, young people 16-24, and children under 5. However, substantial numbers of organisations also catered for other groups, including women, disabled people, people with mental health problems or learning difficulties, carers and unemployed people. 44% of all organisations offered information and advice, 34% provided a direct service.

Larger voluntary organisations were most likely to consider their prime working relationships to be with statutory agencies offering contracts in health and social care, whilst smaller voluntary and community organisations have closer links with district councils. In the City of York Council, both roles exist alongside each other.


Funding

The most important sources of funding were (respectively) fees/charges/subscriptions, fundraising, contracts, and external grants/funds. Contracts are a very important source of income for some organisations, but equally unimportant for others. This indicates the division within the sample between large organisations undertaking functions which have been contracted out by statutory agencies, and smaller organisations who are unlikely to do this kind of work.

Fundraising in a variety of traditional and more innovative ways, still makes up the largest part of the funding of the voluntary sector. The questionnaire responses indicate that for every £1 which the sector attracts from local authorities, it levers in an additional £7 from other sources.

Much of the funding which is received by voluntary and community organisations is short-term in nature, with optimistic assumptions being made about the longer-term sustainability of projects. Much time is spent making repeated bids for funding from different agencies to ensure that work can be continued. This is damaging to the continuity of a service and causes anxieties for both its users and its staff.


Employment

The organisations responding employed a total of 1951 full-time staff and 4006 part time staff. More than half of the voluntary and community organisations responding to the questionnaire spent less than £50,000 on salaries in a year. More than a quarter paid no salaries at all.


Volunteering

The organisations responding had a total of 24,936 volunteers, working a total of 527,910 hours in a year. It appears easier to obtain volunteers in the more urban areas compared to the most rural ones. Many contracts held by voluntary and community organisations are dependent on the availability of volunteers for fulfilment. Smaller populations, poor public transport and the need to travel some distance to undertake the work all militate against volunteering. This leads many organisations to feel that they are competing with each other for the same small groups of volunteers.


Contracting out

It is primarily the larger voluntary organisations which are involved in contracts, either with North Yorkshire County Council, City of York Council, or other statutory agencies. Contracts are offered and sought in a variety of ways and for different reasons. Some voluntary organisations argue that there is a need for a more consistent approach to contracting which is sensitive to the characteristics and diverse nature of the sector. Some voluntary organisations provide services under contracts that would not be economic for commercial or other providers.


Partnerships and perceptions

Issues raised both by voluntary and community organisations and representatives of other organisations flagged up a mismatch in the expectations and understanding each has of the other. The views of joint-working with the sector held by statutory bodies varied widely. This reflected the differing views of the sector itself and the understanding of its present situation held by the officers involved. It also, especially within some local authorities, reflected the lack of a 'corporate voice' in dealing with the sector.

Some officers criticised voluntary representatives for being unable to attend meetings regularly, for being reluctant to represent the whole sector, and for not responding quickly. Representatives of voluntary organisations questioned the nature of 'partnership' and 'consultation', pointing out the gap between 'rhetoric and reality' and the scarcity of their human resources to meet these demands.

The needs and perceptions of larger charities varied from those of their smaller relations. They employed more staff and volunteers, and had a greater capacity to take on contracted work, and fulfil the expectations of partnership arrangements.


Training and development

The majority of organisations provide training for their staff and volunteers, although they are less likely to provide training specifically for trustees. This training is most likely to be delivered in house, but almost two thirds have also sent staff to courses elsewhere, such as those provided by NYFVO.

The areas in which voluntary and community organisations were most likely to consider they needed more training were:

  • Fundraising.
  • Bidding for contracts.
  • Project management.
  • Personnel management.
  • ICT.

The major barrier to receiving training was the lack of sufficient local and affordable training of a suitable quality.


The future role of the voluntary and community sector

Regarding the future role of the sector, the three major challenges cited by voluntary organisations were:

  • Ensuring that services provided continue to meet users needs.
  • Finding new sources of funding and maintaining current sources of funding.
  • Finding, recruiting and keeping volunteers.


There is a recognition within the sector that it must adapt to changing circumstances. However, many organisations feel unsure and even threatened by this. They are unsure of what is required of them, of the current policy framework, and of their role within it.


Conclusions

The findings of this research clearly show that the voluntary and community sector is making a substantial, and often unrecognised, contribution to the local economy. However, the contribution of the sector relates to far more than its economic value. It is also a key stakeholder in all aspects of life, with a rapidly expanding role.

A series of issues emerged from the research, although the relative significance of these varies from district to district.

  • The increasing dependency on volunteers to ensure services are delivered successfully.
  • Long term financial planning is limited by the nature and duration of the funding available.
  • The ability to sustain services in the sector.
  • Contracting can compromise the valuable core functions of voluntary/community sector organisations and their role as pressure groups.
  • The representational role of the sector, its accountability and its ability to adapt to changing circumstances.
  • Capacity issues and the ability to balance many competing demands - core and contract work, working in partnerships, fund-raising and bidding for contracts, and quality assurance issues.

By taking a holistic approach in this research, and placing it within the current policy context, the findings will provide a firm foundation for the advancement of the voluntary and community sector in North Yorkshire. The research has raised a series of issues which must be addressed together by the voluntary/community sector, local government and other statutory agencies if successful joint working, quality service provision and community representation are all to be ensured.

November 2000.


Download all or part of the research

All or part of the research can be downloaded using the links below. These files are in Adobe Acrobat's Portable Document Format (PDF). Help with downloading files.

Executive summary

Volume 1 (detailed report on findings across North Yorkshire and York) (includes executive summary)

Questionnaire used in the research

Volume 2 (findings for all of the local authority areas)

Volume 2 is also available in parts, one for each local authority area. Each includes statistical information relevant to that area and findings on the relationships between the voluntary and community sector and the relevant local authority.

Volume 2 - Craven district

Volume 2 - Hambleton district

Volume 2 - Harrogate borough

Volume 2 - Richmondshire district

Volume 2 - Ryedale district

Volume 2 - Scarborough borough

Volume 2 - Selby district

Volume 2 - North Yorkshire county

Volume 2 - York city


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