Members’ Voice reveals mounting financial pressure and rising demand across Bath & North East Somerset’s Third Sector

A new survey of local charities and community organisations has revealed increasing financial strain, rising demand for services, and growing concerns about long-term sustainability across B&NES’ Third Sector.

The Members’ Voice Survey 2025/26, carried out by the Third Sector Infrastructure support charity, 3SG, gathered responses from 84 organisations working across Bath & North East Somerset and surrounding areas, offering a vital temperature check for the Voluntary, Community, Faith and Social Enterprise sector in B&NES (VCFSE).

Key findings from respondents highlighted over 624,000 local people are being supported by local charities, highlighting the sector’s vital role in community wellbeing. The organisations employ more than 1,530 staff and are supported by over 8,000 volunteers, many of whom provide a substantial share of service delivery.

The survey also found that demand is outstripping capacity - with more than 53% of charities reporting operating  at full capacity. Demand continues to rise across key areas such as health and wellbeing, support for children and young people and community development.

Most importantly, the survey revealed that financial pressures for charities are intensifying. 88% of organisations said they are concerned about long-term funding; over half (56% are worried about financial viability in the next twelve months. Over a quarter (39%) are using reserves to cover core costs (34% hold 3-6 months and 25% hold 0-3 months) and 75% have been forced to adjust budgets due to rising costs. Inflation, increased staffing costs and funding not keeping pace with demand were cited as the biggest challenges.

Whilst there was evidence that organisations are looking to diversify income streams, the survey showed that a heavy reliance on grants remains at 54% and individual giving at 43%.

The data also revealed that workforce and wellbeing concerns are growing. 61% are concerned about staff wellbeing. 39% reported challenges with recruitment and over half of the respondents (56%) were concerned about local volunteer services, including recruitment and retention. 92% said that they rely on volunteers with over a third reporting difficulties recruiting them, with time constraints and competition for volunteers the main barriers reported.

An encouraging 92% of organisations said that they collaborate with partners, though lack of resources and time remain key barriers to deeper partnership working.

Despite the pressures, the survey highlighted a resilient and committed sector. 56% reported good team morale, with many continuing to innovate and collaborate.  A growing adoption of technology was also demonstrated, with 35% using AI to support operations. 63% were formally measuring their social impact, demonstrating accountability and effectiveness.

Becky Somerset, Director at 3SG, said: “These findings point to an urgent need for sustainable, long-term funding models, stronger support for volunteering and workforce wellbeing, improved collaboration across sectors and accessible commissioning practices. 

“3SG’s annual survey is a powerful reminder that these issues are not going away - and we need to work collectively as a system to address those issues, ensuring both long-term stability and sustainability for the charities that go above and beyond for residents in Bath & North East Somerset.”

The full results can be viewed here.