More voluntary sector leaders optimistic NCVO survey reveals

The voluntary and community sector is showing signs of renewed optimism in the UK economy, the National Council for Voluntary Organisation's (NCVO) latest quarterly Charity Forecast Survey reveals.

A growing number of charity leaders believe economic conditions in the UK will improve over the next 12 months, with overall confidence levels up 28 percentage points compared to the previous quarter (January to March 2009).

However, over one third of respondents (37%), still fear that conditions are set to worsen for their own organisation in the next 12 months.

The forecast, based on responses from Chief Executives, Directors, Trustees and Senior Managers of charities and voluntary sector organisations, also reveals that almost half (46%) of charity leaders plan to increase their services, despite having to balance increased demand and falling resources during the recession.

While the report shows a growing sense of confidence in some areas of the voluntary sector, only a third (31%) of those surveyed plan to increase the number of paid staff over the next three months, with over half (52%) maintaining current staffing levels.

A majority of sector leaders also plan to work more closely with other voluntary groups, with over two thirds (68%) expecting collaboration to increase.

Stuart Etherington, Chief Executive, NCVO, said:

Despite the economic downturn, these results show a sense of cautious optimism emerging within the sector. With almost half of charities planning to increase expenditure over the coming months, it's good to see the sector is showing its determination to weather the economic storm.

While the forecast shows some encouraging signs, the sector faces tough challenges ahead. NCVO will continue to work with Government to help our members unlock the vital resources they need.

Of the 139 sector leaders surveyed, the results also showed that:

Almost a third (30%) of charity leaders believe their organisation's financial situation will improve over the next 12 months - a 21 percentage point increase in net confidence levels compare to the previous quarter.

Only 7% of charities plan to decrease their services during the next three months.

Net confidence levels in the economic conditions in the voluntary sector have increased 18 percentage points compared to the previous quarter.

NCVO