Has Covid ‘devastated’ Hampshire’s VCSE sector? Or has the impact been ‘minimal’?
In November 2021, the Hampshire CVS Network produced ‘Hampshire’s State of the VCSE Sector: Covid Edition’, the latest biannual report conducted by the Network to understand and represent how voluntary groups, charities, social enterprises and communities are doing across Hampshire. This report was based on data collected in mid-2021, with data from 1,392 organisations. It documented a diverse sector, with over 10,000 VCSE organisations across the county and surrounding unitary authorities, over 180,000 volunteers and almost 55,000 employees. The impact of the first year of Covid had been varied, with some VCSE (voluntary, community and social enterprise) organisations pausing most activities for significant parts of the year, and others expanding and growing, actively involved in the pandemic response. It was clear the full impact of the pandemic, particularly on the sector’s finances, would take years to fully realise.
In March 2022, a pulse survey was conducted to provide an updated picture of the sector’s finances, capacity and outlook for the future. 144 organisations responded to the pulse survey. This blog outlines the key headlines emerging from the data, comparing the March 2022 pulse survey to the findings from the mid-2021 report.
Financially, many VCSE organisations continue to experience a negative impact due to the pandemic/other world events – however the picture is improving, compared to the 2021 figures. 35.5% of organisations surveyed had experienced a decrease in funding over the past year (less than the 46% who’d seen income decrease between 2020-21), and 26% had dipped into reserves (compared to 45% who’d done this the previous year). One said, “Financially we lost out due to being unable to open our volunteer-run coffee bar fully and we have only just returned to a normal operating level of building hire”. A further 19% had been able to increase their reserves over the year (only 12% had done this between 2020-21). Some organisations haven’t seen a negative financial impact, with one explaining, “We have been fortunate to have had strong leadership from our principal funding partner who confirmed investment straight away”. However, only 21% had seen an increase in their income over the year (compared to 26% who’d managed this during the first year of the pandemic).
Staffing and volunteering levels continue to pose a challenge for the sector. In 2021, 71% of organisations that employ staff found that it was harder to recruit and sustain staff compared to the period before the pandemic. In 2022, 69% report the same level of difficulty recruiting staff than the year before, and a further 30% report it is even harder than it had been in mid-2021. Similarly, recruiting and sustaining volunteers has become more challenging. In 2021, 40% of organisations found it difficult to recruit and sustain volunteers – 55% report continuing to experience this same difficulty in 2022, with 43% finding it even more difficult to recruit volunteers. One respondent said, “We have always found it difficult to recruit adult volunteers but the pandemic has accentuated this”. Another said, “We have capacity to cater for many more groups/activities but have been unable to find volunteers to lead much needed social activities for the elderly”. These challenges have been echoed anecdotally in coordination meetings with colleagues from across the country. They are also reflected in the experiences of the CVS Network itself, in our own hiring and supporting the sector with volunteer and staff recruitment.
Given the ongoing challenge of recruitment, it is not a surprise that the sector continues to struggle with capacity – 43% of organisations had decreased capacity between 2020-21. In 2022, 30% have reduced capacity in the past year and 59% report the same level of capacity as mid-2021. In 2021, 33% of organisations had experienced a decrease in the level of demand for their activities and services. In 2022, this figure has dropped to 19%, as the community become more confident getting involved in things again. Rising levels of demand are a challenge for some organisations, with one explaining that these demands “are not easy to meet due to rising costs and staffing”, and another said “staff are exhausted and run down with the continuous demands”.
Organisations continue to develop their digital skills, with 55.5% of organisations reporting they had become more digitally savvy over the past year. This figure is reduced from 68% of organisations who became more digitally savvy between 2020-21, but is still a significant number. 75% of the pulse survey respondents said that it was important for their organisation to further develop their digital skills, including 22% indicating this was extremely important. However, 25% did not feel this was important. Some of these organisations continue to focus exclusively on virtual meetings, with one responding that digital “doesn’t matter. Eyeball to eyeball communication is far better than people addressing screens”, suggesting that more work is needed to explain the range of ways that digital technology might support the sector – even if activities and services are delivered in person.
Looking ahead, 54% of organisations responding in 2022 expect to be doing more to support their users/community in the year ahead (compared to 43% in 2021). There seems to be more certainty about the future, with only 5.5% answering this question with ‘we have no idea’ in 2022 (compared to 20% in mid-2021). When asked about support from the CVS network over the coming year, support with funding and volunteer recruitment continue to be the top two responses. A number of organisations also requested support advocating for their needs to statutory bodies and support with networking, marketing, sharing information and training was also popular.
When asked how the pandemic had impacted them overall, the responses varied widely. One organisation simply answered, “devastated” while another said “minimal”. For many, “The uncertainty has really taken its toll. Trying to plan, while not knowing what support would be there has been extremely difficult.” Organisations described the impact on their finances, activities, staff and volunteer morale. Some organisations feel like things are now “getting back to normal”, that they have “recovered fully and are back in full operation” while others continue to feel the impact, particularly where “people are still too nervous to come out, not just for the fear of getting COVID, but also because they have been stuck indoors hardly moving for almost two years”. Others have experienced “more reach and growth” and have “flourished over the last year and still continue to do so”.
Organisations are also now concerned about the impact of rising energy prices and other world events, with one explaining, “Covid has caused some staff shortages but not to a great extent. We are more concerned with the cost of living and energy crisis. Rising demands for our service and being able to recruit volunteers and retain staff and volunteers are a constant concern.”
The 2022 pulse survey suggests that, overall, the sector is coping and getting back on its feet – except for those organisations who are not. There is a significant risk those organisations will be left behind, unable to survive. One of the headline messages coming from the State of the Sector report was about how diverse the sector is, how there was no singular Hampshire VCSE experience. In 2022, while much of the sector is restarting and recovering, a not insignificant number of organisations are struggling even more than they had been in 2022. With a cost of living crisis across the country, the sector – particularly those organisations who continue to struggle – needs further support and investment in order to support communities to weather the storm.
The 2021 State of the Sector report is available here.