NCVO Report on the Changing Landscape for VCSE Organisations

NCVO has published its annual report on the state of the sector. It prefaces the report by stating that the UK charity sector stands at a crossroads in 2025, facing an evolving landscape shaped by economic pressures, policy changes and shifting public expectations.

NCVO is calling 2025 the year of the “Big Squeeze” – with special reference to the impact of NI increases, dips in investment performance and loss of jobs across the sector.

Key issues:

• Greater competition for funding and fundraising – the report includes the changing funder landscape. Many funders, (examples include Lankelly Chase & The Foyle Foundation,) are winding down their grant-making activities, with plans to distribute their wealth and assets in the next few years. Other funders have closed to applications and/or are changing their strategy.
• The changing political landscape which presents a complex mix of challenges and opportunities – for example, in February 2025, central government issues new guidance for public sector commissioners, requiring them to “maximise procurement spend” with voluntary, community and social enterprise (VCSE) organisations.
• Being sustainable – charities (including those for whom the environment is not their core purpose) will need to think about how they can embed sustainability practices into the way they operate.
• The changing dynamics of the workplace – including impact of skills shortages as well as the changes forecast due to the use of AI.

We found it to be a thought-provoking overview of the challenging charity landscape and well worth a read. You can access the full report here.