When the going gets tough: Charities’ experiences of public sector commissioning

A new report, When the going gets tough by New Philanthropy Capital (NPC), reveals that charities are cutting services and staff due to decreasing levels of public spending and changes to the way public services are commissioned, including ongoing reforms to the NHS.

The research by NPC, in partnership with insurer Zurich, was carried out among the top 750 charities in England and Wales, with over 100 respondents. It highlights that around two thirds (65%) of charities are cutting frontline services and nearly three quarters (73%) are making staff redundant. Almost one in ten (9%) even risk closing down entirely in the next year.

Three quarters of charities are drafting in more volunteers, nearly half are collaborating more with other charities and most charities (70%) are confident in their skills and capacity to bid for public service contracts. However, 90% of charities surveyed admitted they now face a riskier future in the current commissioning environment, at a time when the government is pushing the Big Society agenda. Well over half (62%) are using or plan to use their reserves to keep going, and NPC warns this will seriously affect the sustainability of the sector in years to come.

For a copy of the report, see When the going gets tough: Charities’ experiences of public sector commissioning