New report reveals state of the VCSE sector in Norfolk
State of the Norfolk VCSE Sector Report released
A new report, The State of the Norfolk VCSE Sector, has revealed the immense challenges faced by voluntary, community, and social enterprise (VCSE) organisations across the county. The findings from the Empowering Communities survey, which gathered feedback from 92 VCSE organisations, highlight critical concerns around funding, increasing demand for services, and recruitment of volunteers, underscoring the urgent need for action to secure the future of Norfolk’s voluntary sector.
Challenges facing the VCSE sector in Norfolk
The report shows that 59% of VCSE organisations struggle with funding, making it the most pressing issue facing the sector. As the cost of living continues to rise, funding has not kept pace with inflation, leaving many organisations stretched thin. This is further exacerbated by the increasing demand for services, with 47% of respondents reporting greater pressure to meet the needs of vulnerable communities, often without the necessary resources.
The strain on the sector is compounded by the recruitment and retention of volunteers. Around 34% of organisations highlighted this as a key challenge, as volunteer numbers remain low and those willing to give their time increasingly seek more flexible roles. Smaller organisations, in particular, are finding it difficult to attract volunteers who can take on administrative and long-term responsibilities, creating further operational pressure.
Internal capacity is another critical issue, with one-third of organisations struggling to maintain services due to staffing limitations and time pressures. Many smaller VCSEs rely heavily on volunteers. Their volunteers and trustees often fill gaps and shoulder many, varied responsibilities. The survey found that a significant number of organisations have been forced to leave staff vacancies unfilled or delay recruitment due to financial uncertainty.
Funding certainty remains the No.1 Issue
The financial outlook for Norfolk’s VCSE sector remains bleak. Over 50% of respondents reported a deterioration in their financial position due to rising costs, and many have been forced to use their reserves to stay afloat. Organisations with an income of £10,000 to £500,000, in particular, are at risk, with limited reserves. This reduces their flexibility and ability to respond to financial pressures. As funding remains stagnant, many organisations are unable to increase staff wages in line with inflation, undermining their ability to retain skilled workers.
The report also highlights the broader societal impact of the challenges facing the VCSE sector. Norfolk charities, social enterprises and community groups plays a vital role in supporting vulnerable individuals and communities, yet the current funding and capacity issues mean that services are under threat, leaving gaps in support for those most in need. Respondents warned that without immediate action, some organisations may face closure, leaving the communities they serve without crucial lifelines.
What needs to be done to support the VCSE sector in Norfolk
Urgent action is needed to secure the future of Norfolk’s voluntary sector. The report calls for longer-term funding solutions that consider inflationary pressures and ensure that VCSE organisations can plan for the future with confidence. Funders and commissioners must also recognise the full costs of service delivery, including staffing and infrastructure needs.
Tasha Cobb, Head of VCSE Sector Support at Voluntary Norfolk, and the report’s author said:
“What we are seeing is a challenging set of conditions facing charities, voluntary organisations, community groups and social enterprises. Lack of certainty about funding is definitely the key factor and one of the easiest ways to ensure the sector is sustainable would be for statutory partners, funders, and the public to recognise the vital work of the VCSE sector and take steps to provide them with the necessary support and certainty when it comes to funding in particular.
“Fortunately, though, we are seeing a level of resilience among the sector in Norfolk, with 90% of organisations saying they are confident that they will be operating next year. This is especially positive given that nationally it has been estimated that one in five charities may be forced to stop operating in the coming years because of what has been dubbed a “cost of giving crisis”.
Partnership working continues to be important in supporting Norfolk’s VCSE sector
Tasha Cobb said:
“This report makes it clear that we cannot be complacent. While the Empowering Communities Partnership will continue to help organisations learn from another and champion the great work of the local sector, our findings show we urgently need long-term, inflation-proof funding solutions that reflect the true costs of delivering vital services. Every day we see the amazing work charities, voluntary and community organisations and social enterprises do, supporting people who need help the most across Norfolk.
“To ensure the sustainability of our county’s VCSE sector, funders and commissioners must recognise the growing demand on our sector and provide financial support that allows organisations to invest in staff, infrastructure, and volunteer recruitment.”
For more information, please contact the Empowering Communities Partnership at: enquiries@ecnorfolk.org.uk.
Background information
Norfolk has an estimated 10,000 voluntary, community, and social enterprise (VCSE) organisations. This includes around 3,500 registered charities and social enterprises, with approximately 6,500 smaller, informal groups that operate under the radar.
Our survey, which captured responses from 92 organisations, revealed a combined workforce of 2,740 staff and 9,770 volunteers. The sector is incredibly diverse, ranging from local community groups to large regional charities, supporting a wide variety of causes including:
- foodbanks,
- dementia support,
- domestic violence,
- homelessness,
- disability services,
- youth and family programmes,
- and many more.
The Empowering Communities Partnership is funded by Norfolk County Council and was set up in 2021 to better support Norfolk’s VCSE sector and enhance collaboration between organisations.
Report Summary
Last year the Empowering Communities Partnership surveyed 92 voluntary, community, and social enterprise (VCSE) organisations across Norfolk. The team gathered insights about the state of the sector from groups of all sizes; ranging from small community groups to large regional charities.
Key findings revealed that securing funding remains the primary challenge, with 59% of respondents citing it as a major concern. Additionally, increasing demand for services and the recruitment/retention of volunteers emerged as significant issues.
Organisations reported varied annual incomes, with most having between £10,000 and £500,000, and a median income of £200,000. One of the top issues, which over half of the respondents highlighted, was that their financial position has worsened due to rising costs. This has prompted many to diversify income streams or use reserves. Capacity limitations were also noted, as well as the struggles faced by smaller organisations in particular with staffing and resources.
Going forward
Looking forward, the majority of VCSEs aim to maintain or increase funding. Financial sustainability, particularly the need for long-term funding that accounts for inflation, was identified as crucial to their continued operation. Reassuringly, 90% of organisations were optimistic about their survival over the next year.
Challenges affecting the Norfolk VCSE sector extend beyond funding. Approximately one-third of respondents face internal capacity issues, with limited staff and increasing demand for services. Rising operational costs, such as venue hire and staffing, have exacerbated these difficulties. Smaller organisations, in particular, expressed concerns about their ability to meet growing community needs. They highlighted how they are often relying heavily on volunteers to maintain services. As a result, a significant number of respondents (39%) said they were focusing on volunteer recruitment. Retaining skilled staff remains another concern. Many organisations struggling to offer job security due to short-term contracts and precarious funding arrangements.
Most crucially, these challenges highlight the need for more robust support mechanisms and funding models to ensure the long-term sustainability of Norfolk’s VCSE sector, which provides so much invaluable support to people across the county.
