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Communities and Culture Committee the Funding of Voluntary Sector

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Communities and Culture Committee the Funding of Voluntary Sector Communities and Culture Committee The Funding of Voluntary Sector Organisations in Wales May 2008 An electonic copy of this report can be found on the National Assembly’s website: www.assemblywales.org Further hard copies can be obtained from: Annette Millett Communities and Culture Committee National Assembly for Wales Cardiff Bay CF99 1NA Tel: 029 2089 8429 Fax: 029 2089 8021 E-mail: [email protected] Communities and Culture Committee Janice Gregory Chair Ogmore Peter Black Paul Davies Nerys Evans South Wales West Preseli Mid and Pembrokeshire West Wales Lesley Griffiths Mark Isherwood Dai Lloyd Wrexham North Wales South Wales West Lynne Neagle Joyce Watson Torfaen Mid and West Wales Contents Section Page Number Chair’s Foreword 1 1 Introduction 2 2 Terms of Reference 2 3 Background 3 4 Legislative Framework 6 5 Evidence 8 6 Key Issues 10 7 Recommendations 35 Annex 1 Organisations and individuals who gave 39 evidence in person to the Committee Annex 2 Schedule of Committee Papers 42 Annex 3 Respondents to the Call for Written Evidence 44 Chair’s Foreword This is the first scrutiny inquiry completed by the Communities and Culture Committee. We have received evidence from a cross-section of the 30,000 third sector organisations in Wales; and also from the Assembly Government, local government, various ‘umbrella’ organisations, those responsible for allocating funding from the National Lottery, and those acting as agents for the Assembly Government – including the Arts Council of Wales and the Sports Council for Wales. The third sector encompasses voluntary organisations, community groups, self-help groups, community co-operatives and enterprises, religious groups, and other not-for-profit organisations. Volunteers within the third sector are united by a desire to help their fellow citizens and local communities; by giving freely of their time, experience and expertise. We were impressed by the enthusiasm and dedication of all those who presented evidence to this inquiry. The Committee acknowledges the support currently provided by the Welsh Assembly Government and other funding bodies. Funding for the third sector from the Assembly Government has increased significantly over the past four years; from £79 million in 2002-03 to £174 million in 2006-07. The Assembly Government recently published a strategic action plan; setting out its vision for the third sector to deliver over the next four years, in return for this substantial investment. Our purpose in carrying out this inquiry is not to duplicate or replace the action plan, but rather to highlight key areas where we consider activity should be focused. The Committee is not calling for additional funding, other than the opportunity presented by the ‘dormant accounts scheme’ to be established in the United Kingdom. But we feel there are opportunities to help third sector organisations to make better use of their time and energy; for example, by improving access to information on funding and reducing bureaucracy in application procedures. I am grateful to all those individuals and organisations who took the time to give us the benefit of their experience and advice; either in formal committee meetings or by responding to our call for evidence. I hope that our report will help the myriad of third sector groups to have easier access to funding; with consequent benefits to individuals and their local communities. I anticipate that our report will be widely read within the sector and hope that our recommendations will be accepted by the Assembly Government. I look forward to receiving their response in due course. Chair, Communities and Culture Committee 1 1. Introduction This is the first scrutiny inquiry carried out by the Communities and Culture Committee. We chose this topic because the voluntary (or third) sector affects everybody in Wales; either as volunteers or as recipients of services. The third sector plays a vital role in civic society; not only in the range of services delivered but also in providing opportunities for people to give of their time, experience and expertise for the benefit of others and the enrichment of community life. We are impressed by the enthusiasm and dedication of those we have met during the course of this inquiry. We began this inquiry in October 2007 when Dr Brian Gibbons AM, the Assembly Minister for Social Justice and Local Government, presented a paper setting out the Welsh Assembly Government’s strategy for supporting the voluntary sector. We finished gathering evidence in April 2008. We acknowledge the valuable work carried out by the Assembly Government in funding the third sector in Wales, either directly or indirectly. We endorse the Assembly Government’s strategic action plan for the third sector. Our purpose in carrying out this inquiry is not to duplicate this action plan, but rather to highlight key areas where we consider activity should be focused. We are grateful to all those individuals and organisations who took the time to give us the benefit of their experience and advice; either in formal committee meetings or by responding to our call for written evidence. 2. Terms of Reference To carry out a scrutiny inquiry into the Welsh Assembly Government’s strategic approach to the funding of voluntary sector organisations in Wales. The Committee will: ¾ Examine the Welsh Assembly Government’s policy for funding voluntary organisations; ¾ Examine policy directions issued to relevant funding bodies; ¾ Examine procedures for monitoring the outcomes of such funding; ¾ Examine ‘gender budgeting’ issues with regard to such funding; ¾ Examine the ease or difficulty experienced by relevant organisations in assessing funding; and ¾ Submit a report to the appropriate Welsh Minister, with recommendations. 2 3. Background Overview There are over 30,000 third sector organisations in Wales. These include voluntary organisations, community groups, volunteers, self-help groups, community co-operatives and enterprises, religious organisations and other not-for-profit organisations. The Wales Council for Voluntary Action (WCVA) database categorises groups by their main activities and by their area of benefit (national, regional or local). Most third sector organisations (87%) are local, working at local authority or a more local level. There are more than 1.5 million adult volunteers in Wales, mostly working with voluntary organisations. This represents about 62% of the adult population. Each volunteer gives an average of nine hours a month; equivalent to some 90,000 full-time workers. The third sector employs approximately 46,400 people; of whom 24,100 are full-time and remainder part-time. In addition, there are approximately 253,000 trustees or members of management groups involved in the sector. In 2007, according to the WCVA funding survey, the total income for the third sector was about £1.2 billion. About 65% of voluntary organisations in Wales have an annual income below £10,000 and fewer than 2% have an income in excess of £1 million. Public donations have historically been the main source of income for the third sector. But by 2005 this had changed, with the public sector becoming the largest source of income – representing some 43% of total income, including funding from the European Union. Funding from the Welsh Assembly Government has increased significantly over recent years from £79 million in 2002-03 to £174 million in 2006-07. Figures from the Annual Report 2006-07 of the Voluntary Sector Scheme: Funding Body £million Welsh Assembly Government 173.9 Local Health Boards 13.4 Assembly Government Sponsored Public Bodies 14.0 Total 201.3 3 Third Sector Income National Private Sector Lottery 4% 4% Public Donation Grants from 26% Trusts 3% Income from Trading and Investments 20% Europe 4% Local Government and Local Health Welsh Assembly and Boards 17% UK Governments 22% Source: Wales Council for Voluntary Action Welsh Assembly Government The Welsh Assembly Government provides direct financial support for the third sector, as described below. Support for the Generic Voluntary Sector Infrastructure: The Assembly Government has signed a five-year partnership agreement with the WCVA to provide support to voluntary sector infrastructure. The agreement provides core funding for the WCVA, for the County Voluntary Councils in each local authority area, and for the Wales-wide network of volunteer centres; formerly known as volunteer bureaux. In addition to the partnership agreement, other elements of the infrastructure are supported by funding through the Partnership Capacity Building Fund (PCBF) and core funding for the Institute of Fundraisers. The total value of infrastructure support allocated in 2007-08 was £5.2 million. Support for Volunteering: The Assembly Government also supports a range of grant schemes which provide project funding, mainly to extend the number and range of volunteering opportunities. The grant schemes also seek to overcome barriers to volunteering. These competitive grant schemes are in addition to the core funding made available under the partnership agreement. 4 The schemes available include: Volunteering in Wales, Wales the Active Community, Millennium Volunteers, and the Russell Commission Youth Volunteering initiative. The current combined annual value of this funding is about £3 million. In addition, the Assembly Government meets the cost of Criminal Record Bureau checks for volunteers in Wales. The cost of this service in 2007-08 was £373,000. Support for Community Development: The main focus of the Assembly Government’s support for community development is the ‘Communities First’ initiative, soon to be taken to its next stage under the banner of ‘Communities Next’. The third sector is closely involved in the operation of the programme at local level; as members of Community First Partnerships in their own right and also as grant recipient bodies for relevant Communities First funding. Outside Communities First areas, the Assembly Government provides core funding to Community Development Cymru, to give specialist advice to groups across Wales and to take forward their ‘strategic framework for community development’.
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