Small charities feel excluded from decision-making and feel that existing infrastructure prioritises larger organisations, according to a new report.

The National Council for Voluntary Organisations’ Power of Small report, published today, is based on a year-long project that heard from more than 600 small voluntary organisations with annual incomes of less than £1m, sector experts and funders.

The project, which was supported by the National Lottery Community Fund, used research, roundtables and pilot initiatives to develop practical recommendations for improving access to funding, advice and collaboration opportunities.

The report found that small voluntary organisations felt underrepresented, excluded from decision-making and were struggling to navigate infrastructure that they felt appeared to prioritise larger organisations.

It also found there was a need for small organisations to have a stronger voice in policy development, representation in funder decisions and advocacy for systemic changes to funding structures.

The report says that during a research phase carried out by the Fair Collective, 78 per cent of 400 survey respondents said they did not feel adequately represented in major funding or policy decisions.

The sustainability of small voluntary organisations is hindered by a lack of unrestricted, multi-year funding, disproportionate application processes and funder-driven models, the report says.

The survey found that 55 per cent of rural-based organisations reported having fewer funding opportunities compared with their urban counterparts.

The report adds that while there is a wealth of support available for small voluntary organisations, many struggle to navigate it or do not have the time to access it, particularly when it comes to governance, digital tools, operations and training to build resilience and capacity.

Hybrid models of support, combining in-person and digital resources, were identified by survey respondents as the most effective way to provide ongoing support to small organisations.

The report says that mental health emerged as an issue cutting across all of these theses, with leaders of small charities highlighting the emotional toll, stress, burnout and, in extreme cases, suicidal feelings associated with financial insecurity, excessive administrative burdens and a lack of access to support systems.

The report includes a series of recommendations for infrastructure bodies, funders and local and national policymakers to create a more sustainable and equitable environment for small voluntary organisations.

These include strengthening the representation of small voluntary organisations to ensure their needs are heard in funding and policy debates. 

The report suggests that infrastructure bodies could work with NCVO’s Small Charity Advisory Panel to ensure the perspectives of small charities are integral to strategic planning and advocacy efforts.

It also urges that power-sharing and transparency principles should be applied to advisory panels to embed genuine power-sharing within the sector.

The report also recommends “fixing the funding system” by making application processes more proportionate, increasing access to unrestricted, multi-year funding and ensuring that small organisations are not excluded from opportunities.

This includes the introduction of targeted funds for voluntary organisations led by and serving underrepresented groups.

It also urges for a strengthening of sector infrastructure, so that small voluntary organisations can access tailored training and advice, as well as digital tools, without excessive time commitments.

The project tested a solution to this need via the design of a prototype digital front door, a centralised online tool aimed at helping small charities find relevant guidance, access resources and connect with peers.

But the report says that although this prototype confirmed a strong demand for a single, simple entry point, it risked adding to complexity.

“For the concept to be truly effective, it must build on and connect with existing trusted resources, rather than duplicating them,” it says.

The research also recommends that collaboration is encouraged across the sector to foster stronger peer networks and make it easier for small voluntary organisations to share knowledge, reduce duplication and strengthen their resilience.