What do we believe?

With the evidence base formed by our research and input from our members and stakeholders, NCVO is well-positioned to inform and influence government on their policies for giving and philanthropy. Increasing the rates of financial giving and social participation are important elements of building a vibrant and sustainable civil society.

Having integrity and clarity around gifts is essential and supporters must have confidence that giving and philanthropy is complementary to public spending and not a substitute. Our most comprehensive outline for ensuring that the sector remains financially resilient is contained in the final report of the Funding Commission.

The Funding Commission

Charitable giving is the third biggest source of income for charities, so any discussion of the future funding of the voluntary sector needs to explore opportunities and strategies for increasing giving.

The Funding Commission was set up in February 2009 by NCVO to respond to the sector’s concerns and uncertainty about funding over the next ten years and to set a new funding agenda. The Commission believes there is potential for increasing the amount given to £20bn by 2020, through better asking and engagement and through exploiting the potential of new technology and new social media.

Funding the Future

The Funding Commission’s final report (2010), Funding the Future (PDF, 3.28MB), offers a ten year framework for how the voluntary and community sector can stay financially resilient when faced with depleted resources coupled with increasing demand for services.  It sets out clear recommendations for civil society organisations (CSOs), funders and commissioners, infrastructure bodies and the government to bolster all income streams for the sector, including individual giving, trading income, grants, public sector contracts and private investment.

Funding the Future makes the following recommendations regarding giving and philanthropy:

• Good grant-making: The ACF should also identify good practice in grant-making and promote it.
• The Better Asking campaign: NCVO should work with the Institute of Fundraising and others to secure £10m from the commercial sector for a six year campaign aimed at improving fundraising, especially at the local level.
• Mutual benefit with commercial organisations: NCVO, CAF and Business in the Community should secure £700k from the commercial sector for a five year programme aimed at expanding brokerage arrangements and developing the relationship between voluntary sector organisations and SMEs (small to medium enterprises) at the local level.
• Attracting new private capital: Government should use the Big Society Bank to develop and underwrite new mechanisms for attracting private investment such as Social Impact Bonds and Social Gilts.

Read the report's full recommendations.

Government policies on giving and philanthropy

The Giving Green Paper set out the Government’s initial ideas for building a stronger culture of giving time and money to start a national debate on our society’s attitude to giving. In March 2011, NCVO responded to the Paper’s consultation using evidence and recommendation from the Funding Commission report mentioned above. In sum it suggested how Government can...

• Use its status and profile to leverage and promote giving and philanthropy;work with the VCS to build an evidence base to establish ‘what works’;
• Highlight and disseminate best practice, including working in partnership and building relationships between the voluntary and community sectors and business;
• Celebrate and recognise giving.

These suggestions were followed by our in-depth policy analysis on the Giving White Paper that was published following the Green Paper’s consultation process. Our analysis explores the specific proposals and investments in the paper, such as the Local Infrastructure Fund, Social Action Fund and Community First programme, and how these could increase giving and participation.

We also made a series of recommendations to government for taking the Giving agenda forward:

1. Focus and clarity, including around funding practice
2. Tackle barriers to giving time and money
3. Clarify the aims of increasing giving time vs money
4. Regularly review the Social Action Fund
5. Review and evaluate success of initiatives new and old
6. Invest in gathering robust research and evidence
7. Establish an Increasing Impact Fund
8. Join up policy making across government
9. Adequately allocate match funding

More information

• NCVO’s Response to the Giving Green Paper (PDF 90KB)
• Find out more about the Giving Green Paper on the Cabinet Office website
• Read our detailed policy analysis (PDF 40 KB) on the Government's Giving White Paper (PDF 2.32 MB), published 23 May 2011.

Gift Aid

Gift Aid is the most widely used and recognised tax-effective giving mechanism.  It accounts for approximately 90% of all tax-effective giving, and enables charities to increase the value of donations through reclaiming tax and Transitional Relief. Government support for Gift Aid is essential and reforms to the current system would bring even greater benefits to fundraising organisations and inspire even more people to give to charity.

Beyond giving

Increased financial gifts must be seen as part of a wider change in sector funding to strengthen and diversify the income base. However, the VCS needs access to a range of funding streams to promote sustainability. This includes grants, loans and contracts as well as donations from individuals and corporate support. The emerging social investment market has the potential to become increasingly important as part of this funding mix and it is important that policies on giving and social investment are consistent and complementary. This includes tax incentives for social investment which must not ‘trump’ incentives to give.

Our strategic goals

NCVO strives to increase the number of donors and the amount that is given to the voluntary and community sector by individual donors by developing and supporting initiatives that increase the public's understanding of how their donations are used by voluntary and community organisations and the benefits that giving can bring to individuals and communities.

We aim to support the work of others in the sector to promote and increase the engagement of the public in the work of the sector (either as supporters, volunteers and trustees) and we will work with others to enhance understanding and use of the many different ways in which business can support the community through the sector, including free professional support, time-off for trusteeship and volunteering, seconding staff, and sharing skills and resources. Our most comprehensive outline for ensuring that the sector remains financially resilient is contained in the final report of the Funding Commission.

Read about our strategic goals in more detail.