Executive Summary

There were around 182,000 charities on the Charity Commission's Register (covering England and Wales) as at April 1997, and 750 of these were registered in one month of the new year alone. The top 7.9% of charities between them get 92.5% of the registered charitable sector's income, while 72.8% of the sector, whose income is less than £10,000 a year, share 1.4% of its total income.

While some individual and corporate donors are committed to causes dear to their hearts, charities are heavily reliant on effective marketing and public relations in the face of so much competition. This need for professional and highly efficient marketing to raise profiles has obviously been recognised and is being actively addressed by the charities contacted in researching this Key Note report. The public's perception of the efficiency and effectiveness of a charity is often cited as of more importance than its charitable objectives, again emphasising the necessity of a professional image.

Effective investment is also of paramount importance, having to achieve maximum return for minimum risk and, often, also having to take into account ethical considerations. Having said this, it must also be accepted that the voluntary sector, by its very nature, is based on idiosyncrasies, on preferences and on personal values and cannot, and should not, be completely subject to rules governing the commercial business sector.

There is a cautious optimism, among some, that the new Labour Government's manifesto contains much that is encouraging to the voluntary sector, acknowledging the contribution made to local economies and communities and the need to safeguard the sector's independence.

The National Council for Voluntary Organisations (NCVO) states that, over the last 4 years, the voluntary sector has expanded by 20% in real terms. Earned income (contracts) from Government increased by 55% and grants by 20%. Expenditure on staff costs increased by 25%. Such growth is not sustainable, it concludes, without investment and support from Government. (The UK Voluntary Sector Statistical Almanac 1996)

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