How much are voluntary organisations being squeezed?

A recent survey report by the London Voluntary Service Council (LVSC) found that that 89 per cent of voluntary organisations and charities in London think that the current economic and policy climate has negatively impacted on the communities they serve over the last year.

Two-thirds of those surveyed have seen an increase in demand for their services. Yet 60 per cent report a decrease in their funding for 2012-13.

Due to the increased strain, 41 per cent of organisations say they have had to close services in 2012, and almost one third are expected to drop services in the coming year. More encouragingly, 90 per cent say that they are changing the way they operate to survive the challenging climate, such as diversifying income, improving work with funders, collaborating or partnering with other organisations in the sector, and taking on more volunteers.

We'd be interested to know what you think. Does it suggest that London’s voluntary and community sector organisations are responding more effectively to the challenges of the current climate? Or is there a real danger that demand is far outstripping supply?