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State of the Sector Report 2025 Reveals Challenges and Resilience of Gloucestershire’s VCSE Sector
We’re pleased to launch our State of the Sector Report 2025, a comprehensive overview of the health of Gloucestershire’s charities. With over 4,500 not-for-profit organisations operating in the county, the VCSE sector continues to play an essential role in supporting their communities, tackling inequalities, and delivering frontline services where they are needed most.
The report offers an in-depth analysis of the outlook of the sector, revealing both serious challenges and inspiring examples of resilience. Drawing on Charity Commission data, financial analysis, and case studies from across the county, the report sheds light on how organisations are adapting in the face of systemic pressures and rising demand.
Key Findings
- Financial pressures are widespread. While overall income rose by 3.6% in real terms in 2023/24, a 11% reduction in reserves suggests that some organisations are relying on reserves to stay afloat.
- Charities need support to innovate in response to system changes. Local Government Reorganisation and NHS restructuring are reshaping the VCSE sector’s operating environment, and many charities report needing targeted support to adapt and engage with these transitions.
- VCSE sector infrastructure must be strengthened to maximise resilience. The report calls for renewed investment in VCSE infrastructure to help build long-term resilience.
A Sector Under Pressure, But Not Without Opportunities to Thrive
The report suggests strategic responses which could be deployed by the sector to combat increasing pressures, including collaboration, income diversification, capacity building, and strengthening volunteering ecosystems.
From a preschool in Stroud to a community-run shop in Bromsberrow, the report features case studies that celebrate the adaptability, and deep local knowledge of the sector’s organisations and volunteers. These stories are a powerful reminder of the value of place-based services, particularly in areas where public provision is diminishing.
An Invitation to Collaborate
As Gloucestershire enters a period of significant change, this report is a timely reminder of the VCSE sector’s central role in creating resilient, inclusive communities. But to sustain this work, collaboration and investment are needed.