Community and voluntary sector at a crossroads

Leaders in the community and voluntary sector joined forces with business groups and universities this month and delivered one message: They pleaded with local politicians to find a way forward for creating a power-sharing government.

With further public cuts proposed in the absence of a Stormont deal, the negative impact such reductions will have on the third sector, along with the vital services it provides for people across Northern Ireland, seem very real.

According to a Funding Watch survey in March this year, run by the Northern Ireland Council for Voluntary Action (NICVA), 88 per cent of the 175 respondents in receipt of statutory funding have either already been alerted to impending cuts, or are at risk of being subject to them.

Almost one in 10 reported that a decrease in resourcing for the next financial year had already been confirmed, while 52 per cent estimated that between one and five jobs were in jeopardy. Almost a third have already put staff on notice due to confirmed or potential savings.

This new Brexit-tinged environment, in which there exists a lack of clarity on funding, puts intense pressure on the entire community and voluntary sector to adapt and find new streams of revenue. 

Certainly the clear strategic direction of travel within Northern Ireland’s government departments is towards third-sector bodies backing their own operations, whilst departments dial back on core financing. There has been a concerted push for organisations to explore social enterprise so that they can become (in theory) self-sustaining.

This has been evidenced by the Invest NI-funded social economy hubs in local communities and the Department for Communities’ funding of the Investment Readiness Programme for organisations to access money not to be provided by government. There are also the aspects of asset transfer and general social economy development, for which Development Trusts NI (DTNI) have been appointed as the Department’s delivery partner for Community Asset Transfer.

Indeed, the Northern Ireland Executive has stated that its objective is for the sector to be made 'modern, enterprising, efficient and sustainable…’

So where does this leave the sector in the wake of Brexit? In the longer term, Westminster will only guarantee European Social Fund capital and other EU sources up until the UK’s exit. There is a fear that no clear course has yet been charted with regards to revenue after this point. Allied with the ever diminishing core funding (if not its outright elimination) from the Executive, in particular the Department for Communities, groups are being asked to rely less on the public purse.

They are increasingly dependent on other outlets such as lottery funds, foundations and trusts, though the lack of multi-year funding makes it difficult to plan for the future.

Some organisations may be able to sustain themselves but many more will not survive. Will we see further collaboration? Shared services including premises, staff, equipment, HR and IT functions, might help some remain viable.

The establishment of the Community Finance Fund offered some recognition that adequate resources were required for stability. That fund was set up to provide a ‘unique and innovative funding opportunity for social investment in Northern Ireland’ and to help improve access to finance for those from across the sector, such as social enterprises and church- and smaller community-based groups. 

Now, more than ever, organisations must lean towards self-sufficiency. Access to financial support will help enhance the level of social benefit delivered to communities.