The effect of public and EU funding on social voluntary organisations

Abstract

Purpose: This study’s main purpose is to analyse the importance of EU and public sector funding for voluntary organisations (VOs) in the social sector. Moreover, this study intends to determine the sources of VO funding and the VOs’ awareness of such funds. It also analyses the application process for funding and the rate of absorbed funds. Design: The study adopted a mixed research methodology. Semi-structured interviews were held with four funding entities, an agency that facilities EU issues, and two officials within the Office of the Commissioner for VOs. An online questionnaire was also distributed amongst all social VOs. Findings: The findings identify various funding sources available for VOs in the social sector. The VOs’ awareness of such funds is determined, with organisations in general being less aware of EU funding opportunities. VOs and funding entities do not view the application process in the same way; VOs feel that more guidance is needed, while funding entities believe that they offer enough guidance. Additionally, human resources are a major determinant in a VO’s ability to be successful in funding. Finally, due to the high number of registered VOs, smaller organisations are struggling for donations and sponsorships; hence, all funds are being oversubscribed. Furthermore, the demand for public and EU funding is increasing; however, larger VOs and those serving the socially disadvantaged are more likely to receive funding. Ultimately, the likelihood of using different financial sources is identified in this study, as organisations recognise the importance of funding to sustain larger projects and an economic downturn. Donations are the most important financial source for VOs, while EU funding is the least likely source to be used. Moreover, larger VOs are more aware of funding opportunities and are more likely to use such funds. Human resources are a major determinant in a VO’s ability to be successful in funding. Conclusion: VOs are a vital part of society, where they complement the government’s work whilst providing services which the government does not offer. Hence, it is of utmost importance for governments and the EU to continue helping VOs through different funds and schemes. Thus, VOs are being maintained by public funds, which makes their accountability towards the general public very important. Value: The voluntary sector has grown over the past years; thus, this study aims to increase awareness of the importance of public and EU funding to VOs and that such funds’ implications are considered. It also provides recommendations to public entities and VOs to improve any shortcomings.