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Third Sector Trends 2025: Challenges and Positives

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The first report of Third Sector Trends 2025, facilitated and co-funded by Community Foundation North East, shows important shifts in how voluntary and community organisations work together and with the public sector. 

Key concerns include a drop in formal partnership working (now at 27.6%) and a reduced sense of being informed or involved by the public sector. The research also shows a fall in interest in public sector contracts, particularly among larger organisations. 

There are, however, positive signs. Informal collaboration remains widespread (72%) and most organisations (87%) say they feel valued by the public sector. Notably, the North East bucks the national trend: in-kind and pro-bono business support is growing locally. 

“As Local Infrastructure Organisation for North Tyneside, we see both the pressures and the strengths across our sector,” said Vicky Smith, VODA Chief Executive. “Strong, trusted relationships are at the heart of a thriving voluntary and community sector. While this report highlights some real challenges, it also shows the value of local partnership working and how business engagement is growing here in the North East. Through initiatives like our Sector Connector project, we’ll continue helping organisations and businesses come together to make a positive difference in our communities.” 

VODA’s Sector Connector helps match community-minded businesses with local charities and groups to share skills, resources and support. Businesses wanting to explore how they can help should contact rachel.sketheway@voda.org.uk 

.You can read the full Third Sector Trends 2025 report on the Community Foundation North East website.

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