The fragile state of Scotland’s charity sector

The Scottish Third Sector Tracker is a growing research community made up of representatives from third sector organisations based across the whole of Scotland, who are willing to share their experiences, views and concerns as the sector faces both new and ongoing challenges. The Tracker asks organisations questions relating to their current organisational challenges, demand for their services, paid staff and volunteers and financial health. 

The Scottish Council for Voluntary Organisations (SCVO) has recently published the report on the wave 10 research. The findings highlight a growing crisis for small charities and voluntary organisations in Scotland:

1. Financial strain is widespread: 81% of charities are facing financial challenges, driven by increased demand, falling income, and higher operating costs.
2. Future funding is uncertain: Only 13% have secured full funding for the next year, while over a third have none confirmed at all.
3. Services and jobs at risk: 60% say financial pressures are affecting service delivery; over 10% have already cut programs, with similar numbers facing redundancies.
4. Survival depends on reserves: More than half are relying on reserves to stay afloat, but this is unsustainable for most.

SCVO warns that without urgent action, the consequences for communities across Scotland could be severe. Despite their crucial role in community well-being and resilience, these organisations are under severe strain, threatening Scotland’s broader social fabric. SCVO is urging the Scottish Government to use its Medium-Term Financial Strategy to provide long-term, fair funding and stability.