# Majority of charities have used fundraising income to support public sector contracts, says NPC report

- Link: https://fundraising.co.uk/2017/05/26/majority-charities-used-fundraising-income-support-public-sector-contracts-says-npc-report/
- Published: 2017-05-26T11:44:26+01:00
- Author: Melanie May

**More than half of charities that deliver public sector contracts have to use other
sources of income, such as money from fundraising, to do so.**

 

64% say this is the case, with a further 57% having to turn down contracts because
the operational risk is too high, according to [New Philanthropy Capital](http://www.thinknpc.org/)(
NPC)’s _[Charities taking charge: Transforming to face a changing world](http://www.thinknpc.org/publications/charities-taking-charge/)
_report_, _which questioned 400 charity chief executives and trustees on the extent
and how they are transforming to deliver greater impact in a changing world.

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Overall, 74% of charities expect to see their activities increase over the next 
three years. Half of charities questioned expect to be delivering more services 
or products in the future (50%) and building community capacity (46%), while around
a third expect to be increasing their public facing campaigns (37%), funding or 
doing more research (35%), or working more with government to influence policy (
32%). Just 11% expect to be delivering fewer public sector contracts.

 

In response to the challenging environment charities are operating in, the report
reveals that the majority – 78% – have had discussions at board level about changing
strategy based on evidence or learning in the last 12 months while 59% are reviewing
governance. Four in five charities (83%) say they have made a change following results
from learning or evaluation, with half of that group (39% of all charities) reporting
making a major change. Many are partnering with other organisations, with 52% expecting
to be partnering more with other charities in three years’ time. 34% have also discussed
merging with another organisation.

 

Patrick Murray, head of policy & external affairs at NPC, said:

 

> “We found some charities thriving through focusing on activities that deliver 
> the greatest impact; collaborating with new and existing partners; embracing diversity
> and a new attitude to risk; and harnessing new resources, from digital technology
> to beneficiaries and communities themselves.
> “But the research identified many others struggling. If the sector is to step 
> up to the challenge, leaders will need to think very differently about how to 
> deliver impact in this changing world.”

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