Voluntary groups in southwest England have drawn up a new ‘uncompromised’ covenant for funders amid concerns that the existing compact is failing to deliver the support the sector needs.

Investing for inclusion includes demands for funding that lasts the length of a project, payments made on time and in advance and reporting requirements that are not unduly onerous.

Funders have been asked to sign up to the agreement, described as an ‘uncompromised and uncompromising message from voluntary and community organisations’, as a new survey revealed fears of an ‘unprecedented’ funding crisis.

The survey by the South West Forum – the regional voice for social purpose organisations – found the sector was facing a confluence of adverse factors including statutory funding cuts, lack of clarity in procurement procedures, a diversion of funding to organisations dealing with climate change and the anticipated contraction in spending as a result of the comprehensive spending review.

Steve Wollett, chief executive of the forum, which has more than 200 members, said: ‘31 March 2008 seems to be a particularly critical time because some funding programmes are coming to an end and there is uncertainty about the comprehensive spending review. We will see some organisations closing, some organisations will cut back on key services and there could be mergers, collaborations and partnerships.’

John Skrine, head of Funding South West, an advisory group to creating:excellence, regional centre of excellence, said: ‘The sector is being squeezed very hard from many directions and there is a feeling of gathering gloom. Jobs are very much at risk and are beginning to go, it is getting harder and harder to find the funds.’

He warned the casualties of the funding problems would go beyond the clientele directly served by voluntary and community organisations.

‘The government is moving towards an approach where people are empowered to be engaged in local decision-making but the organisations doing that kind of community development work are under pressure.

‘Local authorities are in danger of losing the layer of infrastructure support they will very badly need quite soon. For very small sums of money quite a lot could be preserved that is in danger of being lost.’

by Susan Downer
susan@newstartmag.co.uk