Recession will change voluntary sector for good – social enterprise will dominate, says third sector experts

Third Sector magazine’s recession watch panel says the third sector landscape will be permanently changed by the current economic downturn, according  to a story in the online mag today.

Changing patterns of giving, the rise of public sector commissioning and the need to generate greater levels of independent income are all having an impact on the way the sector operates, says the panel. Social enterprise will continue  to become an increasingly dominant business model in the wider sector, partly as a consequence of funders looking to invest their money for social good rather than simply donate it, and it is also likely that mergers amongst bigger charities and voluntary organisations will continue as they seek to scale-up  to compete for the largest public sector contracts.

In fact, these are trends that have been evident in the sector for four or five years. What is new is the accelerating pace of these changes.

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