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Fears grow over potential losses in infrastructure organisations Results from the latest VONNE "Surviving not thriving" Survey (carried out April/May 2010) reveal that the demand for support and development services from frontline organisations continues to rise whilst funding for those VCS infrastructure organisations is increasingly at risk.

Infrastructure organisations are already delivering more for less and are under increasing pressure to meet the rising demand from individuals, VCS organisations and groups. In spite of the challenges, infrastructure organisations continue to provide essential local development and support services to enable VCS organisations to establish, grow and adapt. 43% have seen an increase in beneficiaries and 71% have experienced an increase in demand for services. More than half (52%) have increased the no. of services they provide in response to demand.

Infrastructure are demonstrating their ability to be responsive and flexible, but with huge funding cuts and the end of specific funding programmes on the horizon, there are questions over how much longer this can continue. Infrastructure services are now at risk – 4 could close all together in the coming twelve months. A third of organisations expect to close a current service (33%) and almost a third forecast making staff redundant (29%).

The majority of infrastructure organisations rely on public sector funding and grants. Public sector grants and contracts make up more than 50% of funding in just under a third of organisations. 14% of respondents rely on public sector funding for more than three quarters of their income. 50% are now dipping in to their reserves, mostly to meet the rise in demand for core services.

Over a third may consider mergers as an option but there are no definite plans to do so.

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