The voluntary sector paid workforce continues to increase in number.

The voluntary sector is becoming more ‘commercial and entrepreneurial’. Many organisations are actually operating like small businesses. In addition, the mixed economy is driving some organisations to enter the market directly rather than simply operate on the margins and in areas of market failure.

Large organisations have managed to maintain income growth but small and medium sized organisations have seen their income shrink. Therefore, small and middle-sized organisations face the future with less certainty. However, a supportive political framework, high and continued levels of public trust, and recovery in investment values will help to sustain all organisations in the sector.

Strengthened competition exits amongst voluntary organisations and with service providers from the private and public sectors. In addition to that, potential blurring of boundaries between voluntary and the statutory sectors is expected.

Source: Moore and Witthames 2004, NCVO 2004 and Third Sector Skills Trends Project 2003