Dear Colleagues,
Despite the challenges we face in the VCSEF sector, people still have a desire to give back to the community, indeed over the last quarter, we have continued to see a rise in community demand for setting up groups, applying for funding and information and advice.
This is at a time when operational costs are rising and donations are declining. Recent data from the CAF UK Giving Report 2026 revealed that general public donations dropped significantly, with only about 50% of people now regularly giving to charity, probably as household budgets are continuing to be squeezed.
The VCSEF sector is also absorbing structural cost increases, including the long-term impact of the 2025 National Insurance hikes which resulted in having to manage higher core overheads due to wage and national insurance adjustments.
At the same time, we are faced with a highly competitive grant environment where applications have surged exponentially. These financial strains have forced even major national charities to make difficult choices regarding staffing and service delivery to safeguard their long-term survival. Additionally, the Charity Commission Charity Sector Risk Assessment 2026 warns of a rise in governance disputes, severe volunteer and trustee recruitment shortfalls, and heightened exposure to cyber threats. This, couple with potential leadership burnout, puts additional pressure on internal operations across the VCSEF sector.
However, there is also immense potential for transformation. The evolving political landscape and upcoming public service reforms, particularly the national emphasis on preventative, community-based care, provide a clear window for our sector to step forward. We are the vital infrastructure that understands the immediate needs of our neighbourhoods, contributing to creating social cohesion and reducing health inequalities.
For our sector, navigating this climate means focusing on what we do best: staying true to our missions, prioritising the well-being of our staff and volunteers, and building collaborative partnerships.
I mentioned previously that transferring care from hospitals to the community, referred to as ‘left shift’, is a core part of the Labour government’s 10 Year Health Plan. To achieve this, the Department of Health and Social Care (DHSC) and NHS England (NHSE) have released a Neighbourhood Health Framework. The framework outlines plans to redesign care in the community, help people stay well at home, deliver more joined-up care and reduce pressure on acute services. There will be more information as neighbourhood working is rolled out over the coming months.
Please note also some good news, we have a milestone celebration coming up: our Service User Involvement Team (SUIT) drug and alcohol recovery project was established in 2006 and our Social Prescribing service was established in 2016.
Please hold the dates in your diaries:
- WVCA Celebration: 20 Years of SUIT and 10 years of Social Prescribing
- 10.30-3 on Friday 20th November 2026 at the Arena Theatre
Before that, we are also really looking forward to seeing you at the following:
- VCSEF Alliance Meeting at 10.30-12 on 13th October 2026 at The Workspace, ASAN
- Social Investment Webinar by Tom Bostock from Big Issue Invest at 11-12 online on 24th September 2026.
If there are any issues that you would like to raise or anything that you would like to hear more about, please contact me.
If you would like more information, please remember to check out our website and newsletter regularly – there is always new information, and opportunities are always presenting themselves.
Thank you
Sharon Nanan-Sen
Chief Executive Officer