Measuring The Voluntary Sector - It plays a significant part in the UK economy

24th May 2024

Whether it's developing skills and training to enter the workforce, investing in buildings and equipment, or providing services to fill gaps left by the public sector, the voluntary sector plays a significant part in the UK economy. However, measurement of its economic contribution is inherently complex, meaning the role it plays is often undervalued.

There are several difficulties in measuring this economic contribution compared to methods used for the private sector. One reason for this is a lack of an adequate, recognised definition across the sector, which leads to wide variation in valuations.

Core National Accounts can be used to estimate the voluntary sector, through the Non-Profit Institutions Serving Households (NPISH) sector. However, the UK voluntary sector is much larger than the organisations that are included within NPISH, given the specific definition of this sector. Voluntary organisations are spread across sectors and industries in the National Accounts, so the use of NPISH results in significant undervaluation of the sector's economic contribution.

Read the full article at Fraser of Allender