Skip to main content Accesibility Help
×
×
Home

Charitable organisations, the Great Recession and the Age of Austerity: Longitudinal Evidence for England and Wales

  • DAVID CLIFFORD (a1)
Abstract

There has been extensive concern about the effect of recession and of subsequent public spending austerity on the voluntary sector – but a lack of comprehensive sector-wide data to examine this empirically. We construct a unique longitudinal dataset, which follows through time the population of charitable organisations in England and Wales since 1999, and assess the impact of recession and austerity by placing organisations’ recent annual income within the context of longer-term trends. The results reveal the scale of the impact on charities’ incomes for the first time: since 2008 median real annual growth in income has been negative for six consecutive years, leading to sizeable cumulative real income decline over the period. Mid-sized charities, and those in more deprived local areas, have been most significantly affected, consistent with concerns about a ‘hollowing out’ of the charitable sector and about the uneven impact of austerity. However, there has also been considerable variation in the fortunes of charities working in different fields of activity. The analysis in this paper helps to widen our perspective on the implications of the Great Recession and of public spending austerity for social policy.

  • View HTML
    • Send article to Kindle

      To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

      Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

      Find out more about the Kindle Personal Document Service.

      Charitable organisations, the Great Recession and the Age of Austerity: Longitudinal Evidence for England and Wales
      Available formats
      ×
      Send article to Dropbox

      To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

      Charitable organisations, the Great Recession and the Age of Austerity: Longitudinal Evidence for England and Wales
      Available formats
      ×
      Send article to Google Drive

      To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

      Charitable organisations, the Great Recession and the Age of Austerity: Longitudinal Evidence for England and Wales
      Available formats
      ×
Copyright
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
Hide All
Alcock, P., Kendall, J. and Parry, J. (2012), ‘From the Third Sector to the Big Society: Consensus or Contention in the 2010 UK General Election?’, Voluntary Sector Review, 3:3, 347363.
Alcock, P. and May, M. (2014), Social Policy in Britain, Basingstoke: Palgrave Macmillan.
Alcock, P. (2015), ‘The Big Society and the Third Sector’, in Foster, L., Brunton, A., Deeming, C. and Haux, T. (eds.), In Defence of Welfare 2, Bristol: Policy Press.
Allard, S. W. (2009), Out of Reach: Place, Poverty, and the New American Welfare State, New Haven: Yale University Press.
Bagwell, S. (2015), Times of Change, London: New Philanthropy Capital.
Blundell, R., Crawford, C. and Jin, W. (2014), ‘What Can Wages and Employment Tell Us About the UK's Productivity Puzzle?’, The Economic Journal, 124:576, 377407.
Breeze, B. and Morgan, G. (2009), ‘Philanthropy in a Recession: an Analysis of UK Media Representations and Implications for Charitable Giving’, NCVO/VSSN Voluntary Sector conference, 8–9 September.
Brewer, M., Cattan, S. and Crawford, C. (2014), ‘State Support for Early Childhood Education and Care in England’, in Emmerson, C., Johnson, P. and Miller, H. (eds.), IFS Green Budget 2014: Institute for Fiscal Studies.
Commission, Charity (2009), Annual Report 2008–09, London: Charity Commission.
Clifford, D., Geyne-Rahme, F. and Mohan, J. (2013), ‘Variations between Organisations and Localities in Government Funding of Third-Sector Activity: Evidence from the National Survey of Third-Sector Organisations in England’, Urban Studies, 50:5, 959976.
Commission into the Future of Hospice Care (2013), Future Ambitions for Hospice Care: Our Mission and Our Opportunity, London: Help the Hospices.
DFID (2014), Provisional UK Official Development Assistance as a Proportion of GNI 2013, London: Department for International Development.
Ellison, N. (2011), ‘The Conservative Party and the ‘Big Society’’, in Holden, C., Kilkey, M. and Ramia, G. (eds.), Social Policy Review 23, Bristol: Policy Press.
Ellison, N. (2015), ‘Introduction’, in Foster, L., Brunton, A., Deeming, C. and Haux, T. (eds.), In Defence of Welfare 2, Bristol: Policy Press.
Farnsworth, K. and Irving, Z. M. (2011), Social Policy in Challenging Times: Economic Crisis and Welfare Systems, Bristol: Policy Press.
Gilbert, H. (2015), Mental Health under Pressure. London: The King's Fund.
Gough, I. (2011), ‘From Financial Crisis to Fiscal Crisis’, in Farnsworth, K. and Irving, Z. M. (eds.), Social Policy in Challenging Times. Economic Crisis and Welfare Systems, Bristol: Policy Press.
Gregg, P., Machin, S. and Fernández-Salgado, M. (2014), ‘The Squeeze on Real Wages–and What It Might Take to End It’, National Institute Economic Review, 228:1, R3R16.
Harkness, S. and Evans, M. (2011), ‘The Employment Effects of Recession on Couples in the UK: Women's and Household Employment Prospects and Partners’ Job Loss’, Journal of Social Policy, 40:04, 675693.
Harris, M. (2009), Managing the Impact of Recession on Voluntary Action: ESRC Public Policy Seminar. Accessed July 2015, from http://193.61.20.148/documents/ESRCApril2009_presentationtext.pdf.
Hastings, A., Bailey, N., Gannon, M., Besemer, K. and Bramley, G. (2015), ‘Coping with the Cuts? The Management of the Worst Financial Settlement in Living Memory’, Local Government Studies, 41:4, 601621.
Jenkins, S. P., Brandolini, A., Micklewright, J. and Nolan, B. (2012), The Great Recession and the Distribution of Household Income, Oxford: Oxford University Press.
Johnson, P. (2013), ‘This Time Is Different: The Microeconomic Consequences of the Great Recession’, Fiscal Studies, 34:2, 139152.
Jones, G., Meegan, R., Kennett, P. and Croft, J. (2015), ‘The Uneven Impact of Austerity on the Voluntary and Community Sector: A Tale of Two Cities’, Urban Studies, doi:10.1177/0042098015587240.
Kane, D., Heywood, J. and Bass, P. (2014), The UK Civil Society Almanac, London: National Council of Voluntary Organisations.
Keeley, B. and Love, P. (2010), From Crisis to Recovery: The Causes, Course and Consequences of the Great Recession, Paris: OECD Publishing.
Kendall, J. (2003), The Voluntary Sector: Comparative Perspectives in the UK, London; New York: Routledge.
Lewis, J. (1993), ‘Developing the Mixed Economy of Care: Emerging Issues for Voluntary Organisations’, Journal of Social Policy, 22:02, 173192.
Lupton, R., Burchardt, T., Fitzgerald, A., Hills, J., McKnight, A., Obolenskaya, P., Stewart, K., Thomson, S., Tunstall, R. and Vizard, P. (2015), ‘The Coalition's Social Policy Record: Policy, Spending and Outcomes 2010–2015’, Social Policy in a Cold Climate Research Report 4.
Macmillan, R. (2013a), ‘Decoupling the State and the Third Sector? The 'Big Society’ as a Spontaneous Order', Voluntary Sector Review, 4:2, 185203.
Macmillan, R. (2013b), ‘Making Sense of the Big Society: Perspectives from the Third Sector’, TSRC Working Paper 90.
Macmillan, R., Taylor, R., Arvidson, M., Soteri-Proctor, A. and Teasdale, S. (2013), ‘The Third Sector in Unsettled Times: A Field Guide’, TSRC Working Paper 109.
Milbourne, L. and Cushman, M. (2015), ‘Complying, Transforming or Resisting in the New Austerity? Realigning Social Welfare and Independent Action among English Voluntary Organisations’, Journal of Social Policy, 44:3, 463485.
Mohan, J. and Wilding, K. (2009), ‘Economic Downturns and the Voluntary Sector: What Can We Learn from Historical Evidence?’, History and Policy, 85.
Morgan, G. G. (2010), ‘The Use of Charitable Status as a Basis for Regulation of Nonprofit Accounting’, Voluntary Sector Review, 1:2, 209232.
Mosley, J. E., Maronick, M. P. and Katz, H. (2012), ‘How Organizational Characteristics Affect the Adaptive Tactics Used by Human Service Nonprofit Managers Confronting Financial Uncertainty’, Nonprofit Management and Leadership, 22:3, 281303.
Office for National Statistics (2015) Statistical Bulletin: Gross Domestic Product Preliminary Estimate: Q4 2014. Accessed July 2015 from http://http://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/grossdomesticproductpreliminaryestimate/2015-01-27
Powis, S. (2012), The League of Friends is to Disband: Accessed July 2015, from http://www.walesonline.co.uk/news/local-news/after-many-years-service-league-2054155.
Salamon, L. M. (1987), ‘Of Market Failure, Voluntary Failure, and Third-Party Government: Toward a Theory of Government-Nonprofit Relations in the Modern Welfare State’, Nonprofit and Voluntary Sector Quarterly, 16:1-2, 2949.
Salamon, L. M. and Anheier, H. (1992), ‘In Search of the Non-Profit Sector. I: The Question of Definitions’, Voluntas: International Journal of Voluntary and Nonprofit Organizations, 3:2, 125151.
Smith, S. R. and Lipsky, M. (1993), Nonprofits for Hire: The Welfare State in the Age of Contracting, Cambridge: Harvard University Press.
Smith, S. R. and Grønbjerg, K. (2006), ‘Scope and Theory of Government-Nonprofit Relations’, in Powell, W. W. and Steinberg, R. (eds.), The Non-Profit Sector, Yale: Yale University Press.
Spijker, J. and MacInnes, J. (2013), ‘Population Ageing: The Timebomb That Isn't?’, British Medical Journal, 347.
Taylor-Gooby, P. (2012), ‘Root and Branch Restructuring to Achieve Major Cuts: The Social Policy Programme of the 2010 UK Coalition Government’, Social Policy & Administration, 46:1, 6182.
Taylor, R., Parry, J. and Alcock, P. (2012), ‘From Crisis to Mixed Picture to Phoney War: Tracing Third Sector Discourse in the 2008/9 Recession’, TSRC Working Paper 78.
Wilding, K. (2010), ‘Voluntary Organisations and the Recession’, Voluntary Sector Review, 1: 1, 97101.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Social Policy
  • ISSN: 0047-2794
  • EISSN: 1469-7823
  • URL: /core/journals/journal-of-social-policy
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×
Type Description Title
WORD
Supplementary materials

Clifford supplementary material
Cllifford supplementary material

 Word (44 KB)
44 KB

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed