From struggle to stability: What influences an LIO’s success?

For local infrastructure organisations (LIOs), stability isn’t just about funding, it’s about the conditions that help them operate effectively. New research commissioned by NAVCA highlights the stabilising and destabilising forces that shape how LIOs support their communities.

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What can destabilise an LIO?

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LIOs often face unpredictable challenges that can weaken their position, such as:

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• Short-term, patchwork funding that makes long-term planning impossible.

• Sudden shifts in funding models, often bringing stricter requirements.

• Short term funding leading to high staff turnover, leading to a loss of expertise and momentum.

• Damage to reputation, which can undermine relationships and influence.

• Competition with other LIOs for funding, status, and recognition.

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These pressures can push organisations into survival mode, making it harder to focus on their core purpose and deliver meaningful support.

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What creates stability?

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In contrast, stabilising forces help LIOs build resilience and plan for the future. These include:

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• Long-term core funding that provides financial security.

• Continuity in leadership and staff, ensuring expertise is retained.

• Strong relationships with statutory partners, based on credibility and trust.

• A collaborative approach with other LIOs, reducing unnecessary competition.

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When these factors are in place, LIOs can focus on their mission, advocate effectively, and provide long-term, strategic support to the VCSE sector.

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Why does this matter?

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When an LIO is not able to deliver to the expectations of partners, it is important to ask why and identify the multiple positive and negative factors that could be at play. It is unlikely to be a simple answer. A stable sustainable LIO can champion the voluntary sector, foster strong partnerships, and help local communities thrive. Recognising and addressing the forces at play is key to ensuring that LIOs aren’t just surviving, but thriving.

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To explore these insights in depth, download the full research report here.