Speaking at the National Council for Voluntary Youth Services Annual Conference, Karl Wilding, head of research at the National Council for Voluntary Organisations, said the sector must respond to changing needs.
He told delegates that March 2011 is widely perceived to be the "cliff edge" in terms of the economic downturn for voluntary organisations as that is when funding is likely to dry up, but that there was plenty of time to prepare.
He said: "Now is the time to ask yourself: why are we here? New areas of need are starting to appear, and others are receding."
Wilding added that while the government relationship with the third sector had improved, problems at a local level remain.
Delegates were also told to put forward the economic case for the voluntary sector to take on services from statutory bodies. Craig Dearden-Phillips, chief executive of disability charity Speaking Up, said: "High cost statutory organisations, such as statutory youth agencies, will not be sustainable. State-run things are not good news as far as money is concerned."
The comments came following a speech by third sector minister Angela Smith in which she said the recession was an opportunity for the third sector.
"The recession gives us an opportunity to celebrate voluntary organisations. It has really shown people what we can do and that we have the willpower and ability to deliver in very difficult circumstances," she said.
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