Sector overview report

Its key findings are summarised below:

1. Charity Numbers There are currently 24,696 charities listed on the Scottish Charity Register. Although charity registrations have increased, the overall number has declined since the peak in December 2022. This reduction reflects OSCR’s ongoing efforts to remove defaulting and inactive charities. The trend is expected to continue in light of recent legislative changes and the expansion of OSCR’s regulatory powers.
2. Income Profile Nearly half of Scottish charities report annual income below £25,000. Only 7% exceed the current audit threshold of £500,000. With anticipated changes to this threshold, an additional 3% (approximately 740 charities) may qualify for the less burdensome independent examination regime.
3. Sector Income The total gross annual income of Scottish charities stands at £18.22 billion. Despite the small proportion of charities earning over £500,000, they account for more than 93% of the sector’s total income. Institutions such as universities, further education colleges, registered social landlords, and Arm’s-Length External Organisations (ALEOs) significantly influence these figures.
4. Volunteer Engagement The sector is supported by 251,049 charity trustees, with two-thirds of charities operating entirely through volunteer efforts. This underscores the sector’s reliance on individual goodwill to achieve charitable objectives. Changes to the Charities SORP disclosure requirements aim to better reflect the positive impact of volunteers. As OSCR collects more detailed trustee data, future overview reports may also offer insights into trustee board memberships across the sector.
5. Charitable Activities Scottish charities employ 266,158 paid staff. Service delivery remains the most prevalent method of providing public benefit (51%), followed by the provision of facilities and grant-making to individuals or organisations. Charities are active in all 32 of Scotland’s Local Authority areas, with the highest concentrations in Edinburgh and Glasgow. While 40% of charities operate locally, 11% have an international or overseas focus.