The final reports from the Third Sector Trends Study has now been published. This longitudinal study provides a unique insight into the state of the voluntary and community sector in the North East over five years from 2008/09 to 2014. The report, funded jointly by Northern Rock Foundation and the Community Foundation, Tyne & Wear and Northumberland shows that the voluntary sector has in large part managed to sustain its work, despite enormous challenges and funding pressures over the last five years.

However, a key finding, which has significance for all public and charitable funders of the sector, is that although the majority of voluntary organisations are keeping income levels stable and in some cases seeing some rises in income, this isn’t an even picture across the region. Voluntary organisations located in the poorest areas are 4 times more likely to have lost significant levels of income in the last two years when compared with the richest areas – 30% compared to 7%. Medium sized organisations (those with an income of £50,000 – £250,000) are the hardest hit.

At a time when grants are becoming fewer, with the expected closure of Northern Rock Foundation, voluntary organisations are also reporting increasing reliance on grants, and a decrease in their contract income. Only 16% of voluntary organisations are actively engaged in bidding for or carrying out contracts, reflecting the fact that in general only larger organisations are in a position to be involved in delivering public sector contracts.

These findings highlight serious pressures on voluntary organisations working in the most deprived parts of the region and the danger of major contraction and closure of services for vulnerable people. Penny Wilkinson, Chief executive of Northern Rock Foundation said: “The Third Sector Trends Study is a major part of the legacy of Northern Rock Foundation. Our investment in this study provides the evidence to help policy makers and funders make informed decisions about where and how to fund and support voluntary organisations in the future.”

Tony Chapman , author of the report said : “Charities have borne the pressures of austerity better than many expected over the last five years, but those which are based in the poorest areas are definitely struggling more to maintain funding than charities in rich areas: this is a matter of real concern as they generally deliver to the most needy.”

Rob Williamson, Chief Executive of the Community Foundation  said: “Over seven years, the Third Sector Trends Study has provided invaluable data, and the Community Foundation was pleased to co-finance this last research round. Its findings present challenges for funders, policy-makers and voluntary organisations themselves. With Northern Rock Foundation’s expected closure, the Community Foundation is working with it and others on ways of addressing the sector’s needs. One area of particular focus, especially in the light of these findings, will be continuing to build funder relationships that may result in more resources coming to the region from London and elsewhere. We also hope to be able to enable research on the sector to be maintained in the future.”

The reports are available at this website: http://www.nr-foundation.org.uk/third-sector-trends.php