Category Archives: Research News

Rural Development in the Anglo-Scottish Borderlands

Over the past three years, Professor John Mawson (Policy&Practice) and Dr David McGuinness (Northumbria University) have been involved in a large-scale research project exploring the initiation and efficacy of a strategic economic and rural development programme involving local authorities on either side of the England-Scotland Border.

The research explores one of the few initiatives funded by both the Scottish and UK Governments and local authorities operating across a national border.  Given the associated challenges of cross-border engagement it took nearly a decade to come to fruition. The Borderlands Partnership is supported through the Borderlands Inclusive Growth Deal and is worth some £450 million.

The analysis  explores the underlying organisational, management and leadership characteristics which underpinned the ultimate success in securing the Growth Deal.  This has involved thirty interviews with national politicians, council leaders and officers, senior civil servants in the Scottish and UK Governments together with  private sector, and voluntary sector participation.

Extensive documentary analysis was undertaken (including local authority committee reports, partnership papers and House of Lords and Parliamentary Select Committee Reviews) together with attendance and observation at various Partnership events.

Earlier stages of the work involved Professor Keith Shaw* (Northumbria University), Fred Robinson and Jonathan Blackie (St. Chad’s College, Durham University) and Professor Frank Peck (Cumbria University). The aim was to support the Association of North East Councils and South of Scotland Alliance in the facilitation of long-term cross-border relationships.

Ultimately the ambition was to establish a formal partnership designed to foster economic, social and environmental development in the relatively remote and rural Borderlands. These earlier projects were funded by the Institute for Local Governance under the direction of Professor John Mawson.

The more recent research undertaken by David and John has received considerable interest nationally in both academic and professional circles. Emerging findings were delivered at three international conferences and have now been published:  ‘Rural place leadership across the Anglo-Scottish border analysing the evolution, resilience and success of the Borderlands Partnership’ (Contemporary Social Science, 2026, Vol 21, Number 1).

The research is being taken forward by John and David exploring the opportunities and challenges arising in the implementation of this large-scale and complex cross-border development programme which covers an area the size of Wales and a population of over 1 million people.  Looking forward, the work raises interesting questions and insights that may support the UK and Scottish Governments’ intention to engage more actively in the devolution agenda and possibly create further cross-border policy initiatives.

*The Authors are keen to acknowledge the key leadership role played by Professor Keith Shaw in the earlier stages of this project, who sadly passed away recently.

Third Sector Trends in Essex

This report produces statistical analysis of the situation of the local voluntary, community and social enterprise sector (VCSE) in Essex. This forms part of a wider ‘Community Listening Project’ commissioned by Essex Community Foundation which aims to complete a comprehensive audit of the activities of the voluntary sector in Greater Essex. The work has been designed to support planning and preparations for a new NHS Integrated Care Board covering the whole of Essex and (currently paused) proposals for local government reorganisation.

In this report, data are drawn from a combined register of all currently active voluntary organisations England and Wales. The report also uses survey data from Third Sector Trends in 2025 and provides comparative evidence to highlight activities and achievements of the VCSE sector in Essex that are distinctive, effective or particularly challenging. The analysis builds upon findings from a series of national reports from the Third Sector Trends study and a previous study on Essex in 2023.

The statistical analysis was completed in June 2026, but publication was scheduled for October 2026 so that a qualitative study, also commissioned by Essex Community Foundation could be completed. An event to present and debate findings from both studies will take place in November 2026.

The VCSE sector in Essex is large and productive. There are about 5,200 registered voluntary organisations in the county, that is about 2.8 per 1,000 resident population county wide. The density of voluntary organisations is much higher, however, in the county’s most affluent areas such as Uttlesford where there are 5.1 VCSE organisations per 1,000 residents.

In these more social advantaged and less urbanised districts, there tends to be a greater concentration on micro and small organisations than in less affluent urban areas such as Southend-on-Sea where the proportion of larger organisations is more evident and many more of them focus on critical and pernicious social needs.

The focus of the local VCSE sector in Essex reflects its purpose and practices. In more rural areas of north Essex, voluntary organisations tend to concentrate their attention at neighbourhood or village level while in larger urban areas of the county, they are more likely to work across a wider spatial area – often crossing district or local authority boundaries.

It is estimated that the total value of sector energy expended was about £1.3bn in 2025 and that it produced about £2bn in fiscal, economic and use value for the county. When intangible aspects of social value are added into the equation, it is estimated that total sector contribution was £4.6bn which represents about £35,600 per 1,000 resident population.

Working relationships within the VCSE sector in Essex is strong and suggests a well-embedded culture of cooperation: 76% of VCSE organisations work together in informal ‘complementary’ ways, 68% in semi-formal ‘collaborations’, and 32% work in formally constituted ‘partnerships’.

Relationships with the private sector are widespread: 39% of VCSE organisations are given money by business to help them work, 32% are provided with free use of facilities or provided free goods, 21% get employer volunteer support and 26% were in receipt of pro bono expert advice from businesses.

Public sector relationships are also strong. 89% of VCSE organisations feel valued by public bodies and 67% feel well informed about issues that affect them. Fewer feel involved appropriately in the development and implementation of policies that are relevant to them (46%) but 48% of VCSE organisations believe that local public bodies act upon their opinions or responses to consultations.

In response to questions about local devolution, 62% of VCSE organisations in Essex feel that opportunities for effective collaborative working have increased and 43% feel that public bodies are now giving more notice about new initiatives. Furthermore, 49% believe that public sector bodies are working together more effectively. These baseline data will be useful for comparative purposes if the five prospective unitary authorities in Essex are, ultimately, established.

An event has been organised by Essex Community Foundation on 19th November in Chelmsford to debate the findings from this study together with those from the wider Community Listening  Project.

The report by Tony Chapman and Jonathan Wistow is available here: The contribution of VCSE organisations to place – a study of Essex in comparative context (October 2026)

 

Third Sector Trends in Devon and Cornwall

This report produces statistical analysis of the situation of the local voluntary, community and social enterprise sector (VCSE) in Devon and Cornwall. This research is set in the context of the clustering of Integrated Care Board (ICB) areas of Devon and Cornwall & Scilly Isles in September 2025. This forms part of a longer-term national initiative to reduce the number of ICBs from 42 to 26 clusters across England.

As this report draws upon comparative data for the whole of South West England, evidence from two other ICBs is also included: Bristol, North Somerset and South Gloucestershire (formerly two ICBS) and Somerset, Dorset and North East Somerset, Swindon and Wiltshire (previously three ICBs).]

Devon is going through the process of local government reorganisation. This has involved a period of consultations about a series of five proposals from existing unitary councils, Devon County Council and county council Districts.] As no Ministerial decision has yet been made about local government reorganisation in Devon, this report retains the current administrative geography of Devon for analytical purposes.

The focus of the local VCSE sector reflects its purpose and practices. In more rural areas, voluntary organisations tend to concentrate their attention at neighbourhood or village level while in larger urban areas, they are more likely to work across a wider spatial area – often crossing district and local authority boundaries.

The report shows that the VCSE sector in Devon and Cornwall is large and productive. There are about 8,400 registered voluntary organisations in the county, that is about 4.7 per 1,000 resident population county wide. The density of voluntary organisations is much higher, however, in the county’s most affluent areas such as South Hams is approaching 8 VCSE organisations per 1,000 residents while in Plymouth and Torbay it is around 3 per 1,000 residents.

In these more social advantaged and less urbanised districts, there tends to be a greater concentration on micro and small organisations than in less affluent urban areas where the proportion of larger organisations is more evident and many more of them focus on critical and pernicious social needs.

It is estimated that the total value of sector energy expended in Devon and Cornwall was about £2.07bn in 2025 and that it produced about £3.2bn in fiscal, economic and use value for the county. When intangible aspects of social value are added into the equation, it is estimated that total sector contribution was £7.36bn which represents about £4.1m per 1,000 resident population.

In this report, which was funded by NHS Devon, data are drawn from a combined register of all currently active voluntary organisations England and Wales. The report also uses survey data from Third Sector Trends in 2025 and provides comparative evidence to highlight those activities and achievements of the VCSE sector in Devon and Cornwall & Isles of Scilly that are distinctive, effective or particularly challenging. The analysis builds upon findings from a series of national reports from the 2025 Third Sector Trends study.

The report by Tony Chapman and Jonathan Wistow is available here: The contribution of voluntary organisations to place: A study of Devon and Cornwall in comparative context

All other reports from Third Sector Trends, including detailed technical papers on analytical techniques and research methodology can be located here.

New interactive Third Sector Trends’ data portal

Third Sector Trends is a longitudinal and comparative study which explores the structure, dynamics, energy, purpose and impact of the voluntary sector in the context of change.  

The core elements of the Third Sector Trends Study from across England and Wales in 2025 have now been completed and published.  To draw this round of the study to a close, a seminar was organised by Community Foundation North East, the project’s core financial backer.

Chaired by the Foundation’s Chief Executive, Rob Williamson,  presentations on the research evidence were made by Professor Tony Chapman of Policy&Practice and Hannah Mackay-Christie, Senior Policy and Public Affairs Advisor at Community Foundation North East.

Respondents to the findings, Jo Curry of Sir James Knott Trust and Martin Brookes of Voluntary Organisations Network North East (VONNE) pin-pointed key issues arising from the research and made valuable observations about their usefulness from both funders’ and voluntary sector infrastructure organisations’ perspectives.

Community Foundation North East’s interactive data portal communicates core findings from the study. It is now live and can be accessed here:  Third Sector Trends Interactive Data Portal.

The new site uses data visualisation tools to bring the study’s key findings to life across England and Wales, with a particular focus on North East England, including a breakdown for the North East Mayoral Strategic Authority.

Users can select areas of interest, such as employee numbers, volunteers, purpose, beneficiaries served, or social impact, and explore the results through graphs, maps, and infographics drawn from data gathered since the triennial surveys began in 2010.

“It’s a treasure trove for the sector, for funders, for researchers and for policy-makers – who need to take heed of the economic as well as the social value of what charities and community organisations do across the country,” said Rob Williamson, chief executive of Community Foundation North East

More detail on they history of the study and an annotated list of research publications can be located here: Third Sector Trends

The new evidence portal was featured in a number of sector press articles: Third Sector,  UK Fundraising, Charity Times.

 

Supporting voluntary sector capacity, vitality and impact in the context of place

In recent years, there has been a resurgence of interest in place-based investment by government, local and combined authorities, the NHS and charitable trusts and foundations. Their aims vary, but at root most focus upon securing or reaffirming trust, hope, confidence and self reliance; together with engagement in local decision making and voluntary action so as to engender wellbeing and pride in place amongst people in hard-pressed communities.

Investment in place-based programmes can be enormously expensive and there is a growing recognition that the burden cannot be carried by a single funder – not even government. Consequently, those funding agencies and institutions that wish to help improve local community life are thinking more and more about how their efforts can connect – whether in complementary, collaborative or in formal partnerships.

Investing in hard-pressed communities never starts from scratch. There are always institutions already established in place and working to improve people’s lives. And so, when new funding schemes are mooted, there should always be a strong desire to assess what is currently on the ground and to consider ways of ‘working with what’s there’ rather than starting from scratch.

This report draws on Third Sector Trends in England and Wales 2022 data to help those agencies which are interested in investing in place to identify ‘what’s there’ on the ground and to assess how to support existing capacity. To do that, the analysis cannot show what is happening in ‘every’ place – that would be an impossibly labyrinthine task. Instead, the report looks at a set of ‘types of places’ to hold up as a mirror to ‘real places’ and help identify local strengths and weaknesses in current voluntary sector capacity.

The report was supported by Lloyds Bank Foundation England and Wales and is available here: Strengthening voluntary sector capacity, vitality and impact in the context of place (September 2026)

A blog on the policy context and core implications of the research is available here: Strengthening voluntary sector capacity, vitality and impact in the context of place

Third Sector Trends in Thames Valley

This report by Tony Chapman and Jonathan Wistow of Policy&Practice produces statistical analysis of the situation of the local voluntary, community and social enterprise sector (VCSE) in Thames Valley. This research is set in the context of the establishment of geographically reconfigured NHS Integrated Care Boards (ICBs) across England.

NHS Thames Valley Integrated Care Board was established on 1st April 2026 to plan and oversee health and care services. The Board covers Berkshire, Buckinghamshire and Oxfordshire an area comprising over 2.5 million residents. NHS Thames Valley ICB exists to oversee the area’s £5.6 billion health budget by considering the needs of local communities and deciding where services need to be focused in coordination with hospitals, GP practices, community services, councils and VCSE organisations and groups.

As this report draws upon comparative data for the whole of South East England, evidence from several other ICBs areas will also be reported, including: Kent and Maidenhead ICB, Surrey and Sussex ICB (given the large population of this area, data on ceremonial counties will be reported) and Hampshire and the Isle of Wight ICB.

This report on Thames Valley, as a sub-region of South East England, constitutes one of five area studies – including North East England, Wales, Essex (in the context of East of England) and Devon & Cornwall (in the context of South West England).

Parallel comparative area studies help to make sense of local conditions by holding up a mirror to ‘similar’ or ‘different’ places. This makes it easier to formulate a list of issues about local policy and practice from a ‘position of distance’, which the  voluntary sector (and stakeholders in the public and private sectors which support it) may choose to debate.

Making critical observations from a distance can help people working in the locality to draw back from ‘taken for granted’ beliefs and expectations about what is happening in their area. That can sometimes be an uncomfortable and unwelcome experience. But the observations offered in the report on policy and practice priorities in Thames Valley, we hope, will be taken in the right spirit as ‘talking points’ on issues that might sometimes be overlooked.

The VCSE sector in Thames Valley is large and impactful.

  • There are around 9,430 registered organisations. Sector income is around £2.65bn.
  • Thames Valley VCSE sector produces £4.5bn in added fiscal, economic and use value. When sector energy and intangible value is added, it comes to about £10.3bn.
  • ~49,450 VCSE sector employees in the area – signs of marginal increase rather than decline – but issues with recruitment and retention.
  • ~188,340 regular volunteers deliver 13.6m hours work. Their proxy replacement value is £166m-£258m. 32% of orgs still not recovered volunteer numbers fully from pandemic (38% nationally).
  • Most VCSE organisations’ leaders are confident about their future finances and exhibit real ‘vitality; in their outlook.

The publication of the report coincides with an online event of the Thames Valley VCSE Alliance on 25th June which was attended by over 100 delegates from the public, voluntary and private sector.

The report is available here: https://www.stchads.ac.uk/wp-content/uploads/2026/06/Third-Sector-Trends-in-Thames-Valley-June-2025-1.pdf

The presentation for the Thames Valley VCSE Alliance conference is available here: TSTS Presentation for Thames Valley VCSE Alliance Conference 25th June 2026

All other reports from this year’s study are available here: Third Sector Trends Publications Archive.

 

Third Sector Trends in Wales 2025

This report was commissioned by Wales Council for Voluntary Action as part of a wider research project to build a clear statistical picture on the structure, energy, dynamics, purpose and impact of the voluntary sector in Wales. The study, which draws on data and techniques developed in the long-running Third Sector Trends study shows that the voluntary sector in Wales is large, energetic, productive and impactful.

  • There are over 10,500 registered voluntary organisations in Wales.
  • The voluntary sector has an annual income of around £2.23billion and its expenditure is about £2.16billion.
  • The total financial value of the sector to the economy is estimated at £2.56billion and produces £3.98billion of tangible social value through economic, fiscal and use value.
  • Intangible ‘added value’ is judged to be at least equal to the energy invested in the voluntary sector’s work and this adds up to £9.12billion as the total estimated economic value of the voluntary sector in Wales
  • The work of voluntary organisations in Wales is supported by 212,200 regular volunteers.
  • Collectively, volunteers who regularly give their time to voluntary organisations in Wales deliver 15.3 million hours of work annually which is valued at between £186million (at National Living Wage) or £255million (at 80% of median wage).
  • Voluntary organisations in Wales work effectively together: 76% of voluntary organisations work in complementary ways with others in the voluntary sector; 69% work quite closely but in less formal ways and 34% work in formal partnerships arrangements.
  • There are some good relationships with the private sector: 31% of voluntary organisations receive money from business to help them work; 27% get free use of facilities or free goods and services; 16% benefit from time given by employee volunteers; and 18% get pro bono professional or technical support.
  • The vast majority (86%) of voluntary organisations in Wales (of those which have a relationship with the public sector) feel that their work is valued by public agencies; 65% feel well informed about issues of importance to them; 44% are involved in the development and implementation of policy and 49% feel that public bodies act on their opinions when participating in consultations.
  • Relatively few (8%) of voluntary organisations work ‘for’ the public sector by delivering public services under contracts – although the percentage bidding for or delivering contracts rises dramatically to 51% of the biggest voluntary organisations (with income from £1-25m).

The full report is available here: Third Sector Trends in Wales 2025

A summary report is also available: Third Sector Trends in Wales (Summary Report) 2025 

The full report is also available in English and in Welsh from the  WCVA Cymru website.

 

 

 

Third Sector Trends in England and Wales 2025: the contribution of voluntary organisations to place.

Sector structure is shaped by local conditions

This fourth report in the series demonstrates that voluntary sector structure, capacity and interest in tackling issues is shaped primarily by local area characteristics. There is a higher concentration of third sector organisations (TSOs) per 1,000 members of the resident local population in more affluent regions such as South East England (3.6) than in less affluent regions such as North East England (2.6).

The balance between rich and poor areas varies across regions. In South East England, for example, only 6% of TSOs are located in the poorest areas (the least affluent quintile of the Indices of Multiple Deprivation), while 35% are located in the most affluent. In North East England, by contrast, 28% of TSOs are located in the least affluent quintile while only 15% are situated in the most affluent.

Within regions, the structure of the third sector is shaped by local social and economic conditions. In Middlesbrough, in the North East, for example, 65% of TSOs are located in areas of the deepest social deprivation compared with just 10% in Northumberland. At the other end of the spectrum, 27% of TSOs in Darlington are based in the wealthiest quintile compared with just 4% in Sunderland. These variations have a significant impact on how the local voluntary sector is structured, how it works and what it aims to achieve.

Volunteer support varies by region

In England and Wales, regular volunteers working with TSOs number around 4.3 million people who contribute 308 million hours of work valued at between £3.8bn and £5.6bn in 2025. In most regions, there has been a decline in regular volunteers since the pandemic. In North East England, the number of regular volunteers has fallen from 163,900 in 2022 to 148,900 in 2025; the hours worked has decreased from 11.6m in 2022 to 10.7m in 2025.

Reliance on regular volunteers is even higher in more affluent regions. Expectations that TSOs can rely on volunteers on a very regular basis (81%) or for them to work unsupervised (71%) is substantially lower in the North East than in the South East (87% and 80% respectively). Similarly, fewer TSOs in the North East state that they could not keep going without volunteers (82%) than in the South East (91%).

As there are more deprived areas in North East England, that explains why a higher percentage of TSOs report that many of their service users are beneficiaries (74%) compared with just 63% in South East England. In all regions, a substantial proportion of TSOs state that they have yet to recover to pre-pandemic levels of volunteering (~38%). North West England stands out as an area which is struggling particularly (44%).

Beneficiaries served and social impact

In poorer regions such as North East England, there is a much stronger focus on aspects of pernicious and critical social need than in more affluent regions. For example, 32% of TSOs in the North East believe that they have a very strong impact on health and wellbeing compared with a national average of 25%. Similarly high scores are recorded for tackling social isolation (38%) and building people’s confidence to manage their lives (27%).

In other respects, the impact of the North East England’s third sector is little different from other areas. For example, about the same percentage of TSOs feel that they have a very strong impact on the environment or the cultural and artistic life of the community as in other regions.

In some aspects of beneficiary support, other regions stand out. For example, homelessness is featured as a bigger priority in Greater London than in any other region, while emphasis on rural issues is higher in the less urban regions of East Midlands, South West, East of England and Wales. The focus on overseas aid and international development is the lowest in North East England (2% of TSOs) compared with much higher levels of support in Greater London (8%) and the South East (6%).

A potential intensification of competition for grants

While local conditions undoubtedly shape sector purpose, structure, wellbeing and impact, other factors frame TSOs’ prospects such as national-level political decision making. Often the impact can be direct – when, for example, government shifts policy direction and invests heavily in one aspect of social life to the detriment of others.

Government decisions also affect how local public sector agencies are funded, such as the NHS or local authorities, which can have a profound impact on third sector activity. One such challenge, highlighted in this report, is the government’s squeeze on public finances which has had the effect of lowering the value of contracts offered to TSOs to deliver public services. If the present government fails substantially to raise levels of funding to the NHS and local councils so as to facilitate an increase in contract values this will result in even more TSOs withdrawing from this field of work.

It is highly unlikely that leaders of big TSOs which give up on contracts will decide dramatically to reduce the size of their operations, make service-delivery staff and managers redundant and consolidate activity in existing areas of work which are financed by other means.

A much more plausible response is that big TSOs will look for alternative ways of sustaining their activity. Indeed, leaders in 94% of TSOs which were delivering contracts in 2025 stated that they intended to bid for funding ‘to deliver something brand new’ (compared with 68% of leaders in organisations which have no intention of delivering public services).

Leaders were also asked how they ‘felt’ about bidding for funding to do something brand new: 18% were ‘excited’ about this (that this is ‘what get’s them up in the morning’) and another 40% were ‘quite excited’. Admittedly, some leaders were worried about bidding to do something brand new (22%) – but that was not going to stop them from trying.

As more of those organisations which delivered contracts operate mainly in poorer areas, there will be limited scope to develop self-generated trading activity to bridge the gap in their finances. Consequently, most will probably turn to trusts and foundations for substantial grant funding.

As report author, Professor Tony Chapman, St Chad’s College, Durham University concluded:

“Delivering public services is a minority sport in the voluntary sector. But if those organisations which currently do contract work withdraw from the field, given their size and financial clout, it will have profound consequences for the rest of the sector. Middling-sized charities will be especially at risk as they witness intensified competition for grants from trusts and foundations.”

Increased competition for grants could ensue and seriously upset the current equilibrium in funding opportunities, especially for middling-sized TSOs in a marketplace with finite resources. But the extent to which that happens may vary by region because the decline in the number of organisations delivering contracts varies.

At present in the North East of England, for example, many TSOs are holding fast and remain involved in public service delivery. In other regions, such as North West England and Yorkshire and Humber, there are worrying signs of an exodus from this field. And again, by contrast, in South East England, East of England and London (though admittedly from a lower base), more TSOs are bidding for, or delivering contracts.

As Rob Williamson, CEO of Community Foundation North East said:

“This report confirms what we know – that small and medium sized charities and community organisations are the bedrock of meeting need in disadvantaged communities but can also be the most vulnerable. Providing financial support for these organisations, especially longer-term and unrestricted funding, is critical, and philanthropy, facilitated through the work of organisations like Community Foundation North East, is a vital part of supporting those small and medium organisations often overlooked by government policy and commissioners.”

About the study

Third Sector Trends has been surveying the voluntary, community and social enterprise sector every three years since 2010. In 2025, 8,680 responses were received across England and Wales. This is the only large-scale and fully representative longitudinal national survey in the UK which can produce robust and detailed comparative analysis at regional and national level.

The project is funded in 2025-26 by Community Foundation North East, Lloyds Bank Foundation England and Wales, Wales Council for Voluntary Action and Millfield House Foundation. This is the fourth of five national reports from Third Sector Trends in England and Wales 2025. This is the fourth national report in the series.

The report was published on 12th February 2026: Third Sector Trends in England and Wales 2025 – The contribution of the third sector to place (February 2026)

All other reports in this series can be located here: Third Sector Trends Publication Archive.

And will also be available on the website of the Community Foundation North East: Third Sector Trends

The report was covered in Charity Times, Third Sector, Charity Finance and Civil Society news stories.

 

 

 

Endemic competition over funding in the third sector means that there’ll always be winners and losers

Finance dominates debates about the third sector to such an extent that it sometimes seems as if money is the only driver of sector activity. As instability in voluntary organisations’ income is the norm, not the exception, it is hardly surprising that leaders of third sector organisations (TSOs) feel as if they are struggling against the odds.

The results from the third report was published on 15th January 2026 and is available here: Third Sector Trends in England and Wales 2025 – income sources, assets and financial wellbeing (January 2026) 

Laying the blame for the sectors’ financial woes on external factors is the most common response. A recent editorial from The Guardian exemplifies this, when it argues that: ‘Britain is now in dire need of a new golden age of voluntarism. But the current financial squeeze on charities, which the government has done too little to address, is pointing in the opposite direction.’ (1st January 2026)

Finance is important, that is undeniable. But a majority of voluntary organisations manage with little money as all their energy is provided by volunteers. In such circumstances, financial issues are secondary to those of principle and ambition to achieve the objectives leaders of voluntary organisations prioritise. Certainly, bigger organisations need money to pay for salaries – but it is people who get the jobs done. That is why, In this third national report from Third Sector Trends in England and Wales 2025, money is conceived as ‘facilitative’ for voluntary organisations. It is one amongst many resources to help get things done.

Sometimes, with careful management, nudging and persuasion money finds its way fairly reliably to voluntary organisations along well-trodden paths such as public giving, philanthropy, members who pay subscriptions, from property rents, regularised trading activity, dividends from investments or interest on endowments. More often, getting hold of money requires real effort, determination and imagination. For example, when applying for grants voluntary organisations have to be creative so as to meet the stipulations of funding bodies whilst permitting TSOs to sustain, somehow or other, aspects of tried-and-tested practice to which they are firmly committed and are heavily relied upon by their beneficiaries.

Raising funds can be challenging for TSOs. Especially so when they are engaged in activities which are ‘unpopular’ or ‘unfashionable’ with government, trusts and foundations, philanthropists or public giving is concerned. One example, over the last 15 years is youth work in less advantaged areas where government agencies and many local authorities all but abandoned lending support to this area of third sector activity. But suddenly, in response to low levels of labour market engagement of young people who are not in employment, education or training (NEETS), youth work is back on the political radar.

Competition exists because voluntary organisations’ leaders are so ambitious and determined to achieve their objectives, so it is unlikely that there will ever be enough money to meet demand. Furthermore, new TSOs are being established to enter into new or existing fields of work. In the last financial year, for example, the Charity Commission reported that 9,840 applications had been received to set up new organisations, up from 9,008 the previous year. And in the lifetime of this project, the number of Community Interest Companies has grown more than ten-fold from 3,572 in 2010 to 37,081 in March 2025.

With these points in mind, analysis in this report proceeds from the view that there will always be ‘winners’ and ‘losers’ in funding terms within the third sector. And rather than implying, misleadingly, that the sector is in a perpetual financial crises that is driven solely by external forces – it is recognised that ambition and internal competition within the third sector helps to explain why there never seems to be enough money to go around.

The results from the third report was published on 15th January 2026 and is available here: Third Sector Trends in England and Wales 2025 – income sources, assets and financial wellbeing (January 2026)

A blog providing a summary of findings will be published here: Tony Chapman Blog

The full report is also available on Community Foundation North East‘s website: Third Sector Trends

Sector press stories on the research report can be located here Civil Society Media,Third Sector, Charity Finance, UK Fundraising and Charity Times.

All the national reports on findings and technical reports on methodology and analytical techniques can be found here:  Third Sector Trends publications archive.