Income and Expenditure

Total funding, including grants and contracts, to the voluntary and community sector:

1,085,576,731

Introduction

Estimating the economic size of the voluntary, community and social enterprise sector in Northern Ireland is a complicated task and one that is determined by the availability and accessibility of data from a wide range of sources. The State of the Sector research programme has produced a body of evidence that allows an assessment of the sector's finances to be made over a significant period.

The analysis presented in this section will examine the 2017-2018 funding environment with information collected from funders, the Charity Commission for Northern Ireland, 360 Giving, NICVA's own database and the Government Funders Database. Comparisons with previous years' findings are made where appropriate.

You can find out more about the methodology behind the Income and Expenditure section here.

 1.0  Economic Distribution of Organistions

The Income and Expenditure section of State of the Sector examines the income distribution of voluntary and community organisations in Northern Ireland. This 2017-2018 data was sourced from the Charity Commission for Northern Ireland online register resource.

 

Table 1: Income distribution of voluntary and community organisations
Income BracketNumber 2017-182017-18 %2015-16 %
<£10,00038533.931.8
£10,001 -£20,00012110.611.7
£20,001-£50,00014913.117.0
£50,001-£100,00012410.813.5
£100,001- £250,00013712.013.7
£250,001- £500,000887.74.7
£500,001-£1 million696.13.3
£1 million-£5 million544.73.5
£5 million+121.10.8
Total1,139100100
Source: Charity Commission for Northern Ireland online register resource

 

NICVA utilised income information from the Charity Commission NI website examining the 2017-2018 financial year.

  • In the previous edition of the Income and Expenditure update, it was reported that 43.5% of organisations had an income of £20,000 or less. The data available from CCNI found that in 2017-2018, 44.5% of organisations reported that they fell within this income bracket.
  • This edition reported a decrease in the percentage of organisations had an income of between £20,001 and £250,000. In 2017-2018, 35.9% of organisations had an income of between £20,001 and £250,000 compared with 44.2% of organisations in 2015-2016.
  • NICVA reported that in 2015-2016 0.8% of organisations had an income of £5 million or more. However, CCNI data shows that of the organisations that have updated accounts, 1.1% fell within this income band.

 2.0  Funding

 2.1  Central Government

The figures for 2017-2018 reported below outline direct departmental expenditure. The data was sourced from the Government Funding Database.

 

Table 2: Central Government Funding by Department 2017-2018
DepartmentFunding 2017-2018 £Percentage %
Dept. for Communities (DfC)237,163,34047.2
Dept. of Health (DOH)129,917,77925.8
The Executive Office (TEO)47,249,4809.4
Dept. for the Economy (DfE)41,003,1978.2
Dept. of Education (DE)33,205,7796.6
Dept. for Infrastructure (DFI)6,202,8491.2
Dept. of Justice (DOJ)5,154,3321.0
DAERA2,738,1800.5
Total502,634,935100.0

 

  • According to data obtained from the Government Funding Database, The Department for Communities provided the highest funding to the sector in 2017-2018 with 47.2% of the total direct central departmental funding coming for this department
  • The Department of Health provided 25.8% of direct departmental funding to the sector with almost £130 million awarded from this source
  • The Executive Office provided 9.4% of direct departmental funding with over £47 million awarded to the sector
  • The Department for the Economy provided 8.2% of direct departmental funding to the sector with £41 million awarded from this source
  • The Department of Education awarded significant funding with over £33 million awarded to the voluntary sector
  • The Department for Infrastructure provided 1.2% of funding and the Department of Justice provided 1% of direct departmental funding to the sector
  • The department contributing the least funding was the Department of Agriculture, Environment and Rural Affairs (DAERA). DAERA provided £2.7 million (0.5%) to the voluntary sector

 

 2.2  Non-Departmental Public Bodies and Other Statutory Bodies

This report continues to examine the funding relationship between non-departmental public bodies and the voluntary and community sector. Data presented below was obtained from the Government Funding Database.

 

Table 3: Non-Departmental Funding by Public Body 2017-2018
Non-Departmental Public BodyAmount 2017-2018
Northern Ireland Housing Executive174,799,592
Health Sector130,003,680
Education Sector33,205,779
Arts Council Northern Ireland10,456,357
Sport Northern Ireland3,615,566
Foras na Gaeilge*1,669,286
Northern Ireland Screen1,260,436
Tourism NI898,000
Ulster Scots Agency891,921
Northern Ireland Museum Council14,989
Total356,815,606

 

  • The above table demonstrates the strong relationship between the sector and non-departmental public bodies with over £356 million awarded by non-departmental public bodies in 2017-2018
  • The Northern Ireland Housing Executive awarded the largest funding to the sector, with a total award of £174,799,592 in 2017-2018
  • The heath sector, which includes the Public Health Agency, Health and Social Care Board and all five Health and Social Care Trusts, provided the second largest amount of funding with over £130 million awarded in 2017-2018
  • The education sector awarded over £33 million followed by The Arts Council Northern Ireland who provided funding of over £10 million to the sector
  • Smaller funding grants were also provided by Sports Northern Ireland, Foras na Gaeilge, Northern Ireland Screen, Tourism NI, Ulster Scots Agency and the Northern Ireland Museum Council totalling £8,350,198

 2.3  Local Government

The figures reported below outline local council funding to voluntary and community organisations for the financial year 2017-2018. The data was solely sourced from the Government Funding Database.

Table 4: Local council funding to voluntary and community organisations
District CouncilTotal Funding 2017-2018
Antrim and Newtownabbey Borough Council297,079
Ards and North Down Borough Council247,327
Armagh City, Banbridge and Craigavon Borough Council1,144,434
Belfast City Council291,070
Causeway Coast and Glens Borough Council126,950
Derry City and Strabane District Council1,924,022
Fermanagh and Omagh District Council344,115
Lisburn and Castlereagh City Council620,468
Mid and East Antrim Borough Council41,842
Mid Ulster District Council81,451
Newry, Mourne and Down District Council60,550
Total5,179,308
Source: Government Funding Database

 

  • Table 4, above, shows that Derry City and Strabane District Council awarded the largest amount of funding of almost £2 million to the sector in 2017-2018
  • Armagh City, Banbridge and Craigavon Borough Council awarded the second largest amount of funding totalling over £1.1 million
  • Other councils that have strong funding relationships with the sector included, Lisburn and Castlereagh City Council and Fermanagh, Omagh District Council and Antrim and Newtownabbey Borough Council each of which funded organisations within their area over £1.2 million
  • The council which contribute least funding to the sector was Mid and East Antrim Borough Council , awarding £41,842 in the 2017-2018 financial year
  • The average (mean) funding awarded by councils to the sector was £470,846

 2.4  Irish Government

This State of the Sector research sought to determine the amount of funding organisations in the voluntary, community and social enterprise sector in Northern Ireland received from the Irish Government. Through examination of data held by the Department of Foreign Affairs and Trade in the Reconciliation Fund Tranche 1 and 2, it was concluded that a total of £1,433,248.28 was awarded to the voluntary and community sector in Northern Ireland in the calendar year 2017.

 2.5  European Union

The voluntary and community sector continued to receive funding from European programmes such as PEACE IV, INTERREG VA, INTERREG VB, INTERREG VC, the European Social Fund Programme and the Rural Development Programme from the 2014-2020 funding period. The data presented below includes voluntary organisations which are based in both Northern Ireland and the Republic of Ireland. Consequently, in some cases, it is difficult to determine the exact total funding provided to NI.

Table 5: European funding to the voluntary and community sector
European Funding Programmes (2014-2020)Annual Average £
PEACE IV7,747,482
INTERREG VA1,214,604
European Social Fund Programme8,750,050
Total17,712,136

 

Source: SEUPB and the ESF Management Authority in the Department for the Economy. Figures converted from Euro to Sterling
  • An annual average of £7,747,482 was calculated for those organisations specifically in the VCSE sector who received funding from the PEACE IV programme. This figure includes organisations that deliver services in both Northern Ireland and the Republic of Ireland
  • An annual average of £1,214,604 was calculated for those organisations specifically in the VCSE sector who received funding from the INTERREG VA programme. This figure includes organisations in the VCSE sector only
  • The European Social Fund Programme 2014-2020 approved an annual average of £8,750,050 to VCSE sector organisations in Northern Ireland. This figure represents the total approved but not the final claimed amount which may be lower
Table 6: Additional European funding to Northern Ireland
European Funding Programmes (2014-2020)Annual Average £
INTERREG VB77,936,479
INTERREG VC47,267,930
European Rural Development Programme30,134,452
Total155,338,861
Source: SEUPB and DAERA

 

  • It was not possible to obtain exact data on the number of VCSE sector organisations who obtained funding from the INTERREG VB programme. However, an annual average of funding available totalling £77,936,479 was calculated for the 7 year programme period. A proportion of this figure was received by VCSE sector organisations in Northern Ireland
  • Similarly, we were unable to obtain data on the number of VCSE organisations who received funding from the INTERREG VC programme but an annual average of £47,267,930 was calculated, from which a proportion of funding was received by VCSE organisations
  • Despite being unable to obtain data for all projects who received funding from the INTERREG VB and INTERREG VC, NICVA sourced example projects, with partner in NI, who received funding. Support Network for Social Entrepreneurs (SuNSE) with a partner in NI, received over £1.5 million from the INTERREG VB programme. Atlantic Social Lab (Enterprise North West) received £113,872,512 and Atlantic Youth Creative Hubs (Ashton Community Trust) received £292,968,447 of funding from the INTERREG VC programme
  • The Rural Development Programme for Northern Ireland 2014-2020 provided funding for all aspects of rural life including environment and forestry, agri food and farming, tourism, business development, creation of jobs and access to services and village renewal. An annual average of available funding for the 7-year duration of the programme totalling £30,134,452 was calculated, from which a proportion of funding was received by VCSE organisations
  • The aforementioned funding sources are from EU structural funds only. Other sources of EU funding are available including Erasmus+, LIFE+ and Horizon 2020

 2.6  Lottery

Each year, The National Lottery Community Fund (formerly the Big Lottery Fund) awards millions of pounds to causes across Northern Ireland through a range of funding programmes. The National Lottery Community Fund made a commitment that 80% of its funding will be distributed to the voluntary and community sector. The actual percentage varies on a year to year basis depending on the nature of the funding programmes available. The remaining 20% is distributed to partnerships involving the sector.

Table 7: The National Lottery Community Fund awards
Financial YearTotal Awarded to NI £
2017-1822,022,974
2014-1517,856,000
Source: The National Lottery Community Fund

 

In the 2017-2018 financial year, The National Lottery Community Fund awarded £22,022,974 to the voluntary and community sector in Northern Ireland. This is an increase of £4,166,974 from the amount awarded in 2014-2015.

 2.7  Overall Funding to the Sector

This section examines the percentage of funding awarded to the sector from different sources including the EU, central government through to non-departmental public bodies. As reported in the last State of the Sector, the general public continue to generous to the sector also and donated almost £160 million to the sector.

Table 8: Overall Funding to the Sector
Funding sourceAmount £Percentage %
Central Government502,634,93546.3
Non-departmental public bodies356,815,60632.9
General public159,860,63014.7
The National Lottery Community Fund22,022,9742.1
European Union *17,712,1361.6
The National Lottery Heritage Fund15,617,2001.4
Local Government5,179,3080.5
Grant Making Trusts**5,733,9420.5
Total1,085,576,731100

* This figure does not include EU funding received by VCSE sector organisations from EU programmes such as the Rural Development Programme and non-Structural Funds programmes such as Erasmus+ for which data on funding received specifically by VCSE sector organisation was not available

** This figure includes funding from the Halifax Foundation NI for calendar year 2018 as figures were not available for 2017-2018

 

This section also reports on the level of funding awarded to the sector by Grant Making Trusts. The highest funding was awarded to the VCSE sector by Central Government (£502,634,935) and the lowest by Local Government (£5,179,308). The National Lottery Community Fund awarded £22,022,974 in 2017-2018, an increase of £8,993,397 from the amount awarded in 2014-2015.

 3.0  Expenditure

 

  • This report found that 85% of expenditure of organisations with an income greater than £250,000 was used on charitable activities
  • 8% was used on other areas and 7% on the cost of fundraising

This State of the Sector also examined the percentage of expenditure broken down by organisations' income level.

Table 9: Expenditure of organisations by income bracket
Income bracketNumber orgs analysedCharitable Activities %Cost of Fundraising* %Other** %Total Expenditure %

£250,001-£500,000

15092.14.63.3100

£500,001-£1 million

12791.45.23.4100

£1,000,0001-£5 million

9490.08.31.7100

£5,000,001+

3281.46.512.1100

Source: Charity Commission NI. Data was not available for organisations with an income of less than £250,000.

* The Charity Commission NI refers to the Cost of Fundraising as the Cost of Voluntary Income

** Other expenditure’ includes all expenditure not related to either fundraising or charitable activities, as defined in the SORP (Statement of Recommended Practice) Financial Report Standard for the UK and Ireland http://www.charitysorp.org/media/647945/sorp-frs-102-second-edition.pdf

 

  • Organisations with an income between £250,000-£500,000 spent 92.1% of their expenditure on charitable activities. On the other end of the scale, organisations with an income of more than £5 million spent 81.4% of their expenditure on charitable activities
  • Organisations with an income between £1,000,001-£5 million spent the most on the cost of fundraising (8.3%) and organisations with an income of £250,001-£500,000 spent the least (4.6%)