A third of all voluntary sector grant funding was cut between 2005 and 2010 with its value dropping from £4.5 billion to £3 billion. These figures are published in the 2012 NCVO Civil Society Almanac and have been reported by the Local Grants Forum.
The drop which does not take into account further cuts made in the last two years highlight the extent to which there has been a major shift from grant funding to contracting and also the impact of the recession of 2008 - 2009.
It reinforces the need for voluntary and community organisations to look to diversify income streams.
The Local Grants Forum which comprises 17 national charities campaigns to protect grants for local voluntary and community groups. A spokesperson commented;
"that grants from local public bodies to support work in the community are dwindling, with more local charities being forced to compete for funding on a contract basis or have no support at all. This trend is not in the best interests of local charities, the communities they serve nor ultimately public sector funders.”
The NCVO Civil Society Almanac also found that charities were hit by £2.3 billion in rising costs purely as a result of inflation between 2008 and 2010.