Small charities today suffered another blow as support organisation the Foundation for Social Change announced its closure.
The shock decision, revealed in a press release this morning, comes 12 months after the Small Charities Coalition closed down – and two weeks after the 360 Giving report revealed more than 1,000 infrastructure charities had closed since 2010.
The news has been greeted with “extreme sadness” by NCVO, which has contacted DCMS to flag its concerns about the sustainability of voluntary sector infrastructure.
FSI, whose trustees include the former Labour home secretary Lord David Blunkett, said: “The trustees of the FSI are sorry to announce we have taken the difficult decision to formally wind up the charity.
“It has proved increasingly challenging to balance delivering the training and support we provide to members with the funding received from the multiple streams pursued by the FSI’s leadership.”
The trustees’ statement added: “We are extremely disappointed that yet another infrastructure charity must close at a time when supporting these organisations is so vital.”
It went on to say that the “challenge of sustainability” had hampered its works since its inception, despite rising demand for its services.
The trustees said: “This challenge has finally become too significant to continue.
“We were the charity behind Small Charity Week, an initiative that has expanded to become a sector-wide event.
“We have reached nearly 9,000 small charities with our member offers and trained thousands of individuals across the country. We are sorry that we will not be present in the future to do more of the same.”
They said the charity would close “responsibly” this spring, adding: “We will look to secure ongoing support for small charities through other means.
“As we progress our closure, we will look to respectfully wind down contractual arrangements between partners, suppliers and sponsors.
“We will do our utmost to support our staff in the coming months to look for work and ensure their wellbeing.
“FSI would not have existed without our members and we have been so proud to promote the contribution of small charities for the past 15 years.
“We hope our legacy is that the needs of small charities are permanently at the top of the sector’s agenda.”
NCVO chief executive Sarah Vibert said: “We’re extremely saddened about the closure of FSI, not only what it means for their organisation and staff, but also what it signifies for the wider infrastructure sector.
“This news will come as a further blow to small charities, after the Small Charities Coalition closure last year.”
She added: “FSI has been a trusted partner to NCVO for several years, delivering our popular shared e-learning course, and more recently partnering to deliver the legacy of the Small Charities Coalition.
“We are committed to ensuring the specialist support FSI provides is not lost and will work with FSI trustees, partner organisations and funders over the coming weeks to find the best solutions.
“We were already working to deliver the Small Charity Week campaign with the FSI this year and are actively talking to our civil society group partners about this.”
She said infrastructure was a “vital part of the voluntary sector ecosystem, providing support, connection and voice to government, so charities can focus on delivering their mission”.
“These are all crucial during crises, but we also know the current cost-of-living crisis means that voluntary organisations have to carefully account for every penny spent.”