Voluntary and community organisations across South Yorkshire are facing a growing gap between demand for their services and their capacity to deliver due to rising costs and funding and recruitment constraints, according to new research by Sheffield Hallam University.

A survey of the region’s voluntary and community sector (VCS) highlighted financial concerns linked to increased costs and stretched funding; heightened demand for services and lack of capacity to meet this demand; and recruitment, retention and wellbeing of staff and volunteers.

The research, carried out by experts in the University’s Centre for Regional Economic and Social Research (CRESR) found that demand for the services of voluntary and community organisations (VCOs) has increased for 80 per cent of those surveyed over the last year.

However, only half said that the level of service their organisation can provide has increased. Expectations are similar for the next 12 months, suggesting that there is a gap between the demand for the services of VCOs and their capacity to meet this demand.

One of the charities surveyed as part of the research said: “[The] cost of living crisis has increased the level of support needed by our clients and also impacted on increasing our wages bill. However, funders do not take this cost of living into consideration and do not increase funding pots accordingly making this very challenging.”

Just over half of organisations have taken actions in response to these challenges, including increasing the price of their services, making changes to the organisation’s aims and/or service focus, seeking expert advice or support and reducing the level or number of services they provide.

Cathy Harris, research fellow in CRESR and lead author of the report, said: “This research highlights the value and impact of the voluntary and community sector across a range of areas, with organisations delivering important services in health and wellbeing, advice and training, community participation, and advocacy and awareness raising."

"However, the research also raises concerns about the sustainability of the sector going forward. The cost-of-living crisis is resulting in increased demand for voluntary and community sector services."

"At the same time, organisations themselves are struggling financially with the lasting impacts of the Covid-19 pandemic and funding not keeping pace with increasing costs. This is further compounded by concerns about staff and volunteer recruitment, retention and wellbeing as a result of these challenges.”

The report was commissioned by a partnership of VCS support organisations in South Yorkshire (Voluntary Action Rotherham, Voluntary Action Sheffield, Voluntary Action Doncaster, Barnsley Community and Voluntary Services, South Yorkshire Community Foundation, South Yorkshire Integrated Care System) to provide an up to date picture of the sector in the region.

There are over 2,200 registered VCS organisations operating in South Yorkshire, with the majority being locally-focused charities. The sector makes an important contribution across areas like health, social welfare, education and community development with over 19,000 paid staff working in the sector plus over 50,000 volunteers.

Read the report South Yorkshire VCSE: Understanding Value and Impact here