Tag: charities

Small changes could make big difference to Edinburgh charities

Edinburgh charities may be able to improve their financial resilience through smarter approaches to saving, despite ongoing pressure from rising costs and uncertain income streams, new research suggests. 

A survey found that many charities hold substantial cash reserves, yet almost half lack confidence in their long-term financial stability. The findings point to a disconnect between balances held and the role those funds play in supporting sustainable operations. 

While reserves remain a vital safety net, the research highlights an opportunity for charities to make their money work harder. By reviewing where cash is held and exploring more suitable savings options, charities could strengthen resilience without increasing risk or reducing accessibility. 

The survey by Redwood Bank, MoneyComms’ Best Charity Savings Provider 2026, found that 69 per cent of UK charities hold over £50,000 in savings, with almost half (46 per cent) holding more than £100,000. When current accounts are included, 84 per cent hold more than £50,000 and 68.5 per cent hold over £100,000. 

Despite these substantial balances, charities are under mounting pressure: 

  • 80 per cent reported rising day-to-day costs 
  • 73 per cent said they struggle to secure stable donations and funding 
  • 62 per cent have seen the value of donations decrease 
  • Almost half (49 per cent) lack confidence in their long-term financial stability 

One charity said: “We face increases in demand for our services at the same time as our donations are falling. That combination is unsustainable.” 

The research also shows that while 81 per cent of charities review their savings at least annually, many still do not seek alternatives that could improve returns. Fewer than half (44 per cent) do not hold a savings account with a second provider, choosing instead to keep their money in a current account, with over a third of these charities citing lack of awareness of the options available. 

The survey highlighted what matters most when choosing a savings account. Alongside competitive interest rates (85 per cent), charities value accessibility and withdrawal terms (72 per cent), bank reputation (60 per cent), digital ease (56 per cent) and ethical or social values (51 per cent). 

The findings have prompted the specialist Bank to draft its first Redwood Research Report, How smarter saving can strengthen the UK charity sector, which sets out practical steps to help organisations make their reserves work harder. 

Jessica Darrah, Senior Savings Product Manager at Redwood, said: “Charities are working tirelessly to support communities but are often doing so under financial strain and with limited options.

“Our research shows that while many have substantial reserves, these funds are not always working as hard as they could or should be. When every pound matters, smarter saving strategies could make a real difference to financial resilience. 

“As a specialist business bank, we can provide personal service with consistently competitive savings rates. The Bank has been recognised as the Best Business Variable Rate Deposit Account Provider at the Moneyfacts Awards for seven consecutive years, reflecting our commitment to delivering value and clarity for customers. 

“Unlike traditional high street banks, we can focus on understanding the specific needs of charities and smaller organisations. Our dedicated savings products and knowledgeable team aim to make saving simpler, more transparent and better suited to the realities of the sector.” 

The Redwood Research Report can be downloaded here:

 https://redwoodbank.co.uk/savings/charity-savings-accounts 

More charities closed than opened in Edinburgh in 2025

THIRD SECTOR FACES GROWING PRESSURE

Charities across Edinburgh entered the new year facing a complex operating environment, as Scottish Charity Register data reveals more organisations were removed from the register last year than were newly established.

According to the register, 101 charities were registered in Edinburgh during 2025, while 122 were removed from the register.

Removal from the register can include mergers or charities completing their purpose, but the figures highlight the ongoing pressures within the voluntary sector as organisations adapt to rising costs, regulatory demands and changing funding patterns.

This local picture mirrors UK trends. The Status of UK Fundraising 2025 report found that 54% of UK charities saw their fundraising income remain static or fall over the past year, with a substantial majority attributing this to wider economic conditions. While income is not universally declining, many organisations are having to work harder to maintain stability.

Ansvar Insurance, a specialist insurer for charities and not‑for‑profit organisations, says the challenge is less about short-term survival and more about long-term sustainability.

Photo of a group of friends studying together at home

Adam Tier, Head of Underwriting at Ansvar, commented: “Edinburgh has always had an incredibly active charity sector, but these figures show just how challenging the current environment has become.

“Rising operational costs, a more competitive fundraising landscape and increased demand with an average of 27% of Edinburgh residents relying on charitable services mean organisations need to think differently about sustainability.”

To help local organisations strengthen their resilience, Ansvar is encouraging charities to explore less obvious strategies that can make a meaningful difference:

  1. Build practical partnerships: Formal partnerships with organisations serving similar beneficiaries can reduce overheads through shared back-office functions, joint fundraising and collaborative grant bids, while strengthening funding applications.
  2. Focus on long-term supporter relationships: Nurturing existing supporters through regular updates and consistent storytelling can help convert into monthly giving, providing greater stability than one-off donations.
  3. Review insurance and risk exposure: A risk assessment can highlight duplicated cover or gaps in protection. As services evolve, charities should ensure their insurance reflects current activities to avoid unnecessary costs or unexpected exposures.

Despite the pressures, the registration of new charities in Edinburgh during 2025 demonstrates the commitment of local communities to addressing social need.

Adam Tier added: “Financial sustainability isn’t just about raising more money. Often, it’s about taking a fresh look at existing processes and asking the right questions.

“The organisations that thrive are those that plan ahead, understand their risks and adapt early, positioning themselves to weather these challenges and continue serving their communities for years to come.”

https://www.cafonline.org/insights/research/uk-local-giving-report-2025#interMap

SCVO: New research finds funding delays emerge as major challenge for Scottish charities

Organisations call for reliable, multi-year funding to avoid increased annual pressures

Charities in Scotland are increasingly struggling with funding delays, with organisations facing cash‑flow pressures, postponed or cancelled services, and depleted reserves.  

The latest findings from the Scottish third sector tracker reveals a sector that continues to show resilience and adaptability, but one that is increasingly stretched across multiple fronts. 

The Scottish Council for Organisations (SCVO) have now said calls for multi-year funding for the sector in line with inflation is absolutely essential.  

The research, carried out for SCVO and partners, found over a quarter (28%) of organisations now cite delays or reductions in funding as a top challenge. 

As a result, charities say these hold-ups in funding force organisations to draw on reserves as well as creating immediate cash‑flow pressures and forcing services to be postponed or cancelled.  

The tracker found 58% of organisations hold less than six months’ reserves – up five per cent from Spring 2025 – and 57% say their current use of reserves is unsustainable, a sharp increase from 40% in Autumn 2024 

Delays create immediate cash‑flow pressures (for around 60% to 65% of those organisations), force organisations to draw on reserves (45% to 50%), and lead to postponed or cancelled services (35% to 40%). (1)  

Critically, funding delays also have a profound impact on staff morale, wellbeing, and retention.  

Uncertainty around contract renewals, the risk of redundancy, and the inability to plan long‑term contribute to anxiety, frustration, and the loss of experienced staff are all exacerbating existing problems.  

Overall, the findings show a sector committed to delivering for communities but increasingly constrained by financial instability, workforce shortages, and systemic uncertainty.  

Steve Grozier, Research Officer at SCVO, said: “This latest wave of Scottish third sector tracker reveals a sector that continues to show resilience and adaptability, but one that is increasingly stretched across multiple fronts.

“Service delivery remains broadly stable, yet over half of organisations report that limitations in resources, skills, or capacity are hindering their ability to meet demand.

“Financial pressures have intensified. Staff recruitment and retention remain difficult for many organisations. Volunteer recruitment and retention challenges remain acute. Funding delays have now also emerged as a major challenge. The work being done by organisations across the sector in the midst of these issues is commendable.” 

Responding to the tracker survey, organisations consistently emphasise that secure, multi‑year, inflation‑linked funding — particularly for core costs and staff salaries — is the single most important factor that would enable them to do more.  

Without structural changes to public sector funding models, investment in workforce capacity, and improved partnership working, organisations risk being unable to meet rising demand or sustain essential services. 

The calls come ahead of a hustings of candidates for the 2026 Scottish Parliamentary elections at SCVO’s flagship event, The Gathering, on Tuesday, 10 February.  

SCVO have published their manifesto, Scotland’s Essential Sector, outlining the need for the next Scottish Government to deliver Fair Funding, with the need to reform the public sector funding landscape for voluntary organisations more pressing than ever. 

Anna Fowlie, SCVO Chief Executive, added: “Scotland’s charities, community organisations and social enterprises are a fundamental cornerstone of our society and economy.

“This research shows a growing fragility which is detrimental to us all. It’s time to give these organisations, and the people they serve, the respect and stability that they need.  

“The next Scottish Government needs to implement Fair Funding as a matter of urgency.” 

Inspiring Scotland: Seven campaigns receive funding to drive social change 

Seven organisations have been selected to receive funding for campaigning projects aimed at improving the lives of people in Scotland.  

Covering a wide range of issues from access to health checks for disabled people to helping older people connect with their communities, these projects will lay the essential groundwork and build momentum for larger campaigns.  

Celia Tennant, Chief Executive of Inspiring Scotland, said: “Achieving long term, systemic change requires sustained effort and commitment. And while there is no shortage of people with the required passion and good ideas, funding for the crucial early stages of social justice campaigns is often limited. 

“Our goal was to support those with a clear vision, deep knowledge of the issues, and confidence in building larger campaigns, but requiring resources to explore ideas, gather evidence, and test approaches for maximum impact.” 

For this funding call, we partnered with Changing Ideas, an organisation with a strong track record of supporting campaigners to tackle social injustices in the UK and worldwide, and we’re excited to bring their experience and investment to Scotland. 

David Graham, founder of Changing Ideas, said: “We are delighted to fund charities and groups working for change across the environment, childcare, women’s and girls’ rights, and more.

“We see this as the first step in building momentum for wider systemic change, and we are excited by what our partners will go on to achieve.” 

Although this call focused on supporting a small number of projects, we were overwhelmed by nearly 100 applications, clearly demonstrating the strong appetite for campaigning in Scotland. 

We wish all those who weren’t selected best of luck in their efforts. 

After careful consideration and interviews with shortlisted applicants, the following seven projects were selected for funding: 

  1. Children First: £10,000 to progress their campaign against online harm to children and young people.  
  2. Coastal Communities Network: £10,000 to campaign for better access to information on water quality, increased centralised water testing, and improved access to community water testing equipment.  
  3. Enable Scotland: £9,928 to support people with learning disabilities in leading local and national campaigns to improve access to regular health checks.  
  4. Vintage Vibes: £10,000 to campaign against isolation, declining confidence and stigma surrounding ageing, and help older people feel valued and sure of their place in their community.  
  5. YWCA Young Women in Scotland: £9,983 to run a Scotland-specific campaign addressing digital violence against women and girls (VAWG), led by young women themselves.  
  6. The Motherhood Plan – Pregnant then Screwed: £10,000 to undertake the groundwork for a large Scotland-wide campaign that secures bold, credible childcare commitments from MSPs and holds the next Scottish Government to account.   
  7. Parenting Across Scotland: £8,600 to co-ordinate a campaign group with other children and families organisations to campaign for a Scottish hobby model to address the current inequity in hobby provision in Scotland.

Amy Woodhouse from Parenting Across Scotland explains how the funding is going to help the organisation realise their ambition for all children and young people in Scotland to have access to a hobby of their choice: “Hobbies are brilliant for so many reasons – they help children develop new skills, make friends and boost confidence.

“They can provide solace when times are tough and offer positive spaces for children to grow and develop. They should be a part of every childhood, but sadly they’re not. Cost, accessibility, lack of choice, transport difficulties and long waiting lists all prevent children from taking part. 

“The solutions are possible, but we need a co-ordinated national approach to really make progress. Support from the Ideas for Change fund will help us to build momentum behind our hobbies campaign and ensure that all children and young people, regardless of their circumstances, can benefit.

“We are very grateful to Inspiring Scotland and Changing Ideas for this award.”

A spokesperson for Vintage Vibes said: “We are delighted to be selected by Inspiring Scotland as one of seven fantastic organisations to run a campaign to improve the lives of Scottish people in 2026.

“Our campaign will launch later this year, building on our highly acclaimed Ten Years Bold campaign, and will aim to spread empowerment in older people across Scotland, tackling ageism and challenging stigmas. We can’t wait to start!”

Inspiring Scotland are proud to partner with Changing Ideas and the seven funded organisations, and look forward to supporting their efforts and sharing updates as their campaigns progress.

Aldi provides over 13,000 meals to Edinburgh charities over festive period

Aldi helped deliver 13,823 meals to people in Edinburgh over the Christmas and New Year period by donating surplus food from its stores.

The UK’s fourth largest supermarket teamed up with local good causes across Edinburgh – including Porty Community Fridge, Food Rescue Group and Tummies Not Trash – to donate a range of fresh and chilled foods from its stores after closing early on Christmas Eve and New Year’s Eve.

Neighbourly, the community giving platform that partners with Aldi, found that charitable organisations faced increasing pressure over the winter period, with four in five charities saying demand for their services had risen over the past six months and demand for foodbanks and other food provision expected to increase by nearly 30% over the colder months.

Aldi has worked with Neighbourly since 2019 and provides surplus food from all of its UK stores to thousands of charities across the country.

Luke Emery, National Sustainability Director at Aldi UK, said: “This Christmas we were proud to support so many incredible charities across the UK who provide essential support to those in need.

“The services provided by food banks are more important than ever in the current climate, especially over the festive period and we’re committed to ensuring those that rely on them have access to a wide range of high-quality foods.”

Steve Butterworth, CEO at Neighbourly, added: “We’re so grateful to have had Aldi’s support for another year.

“Christmas is one of the busiest periods for our charities and the donations from Aldi mean we can help even more people across the country who need that bit of extra support over the festive period.”

Shoppers can donate food to local charities, food banks and community groups via the community donation points in Aldi stores nationwide.

Aldi also works with Company Shop Group, the UK’s leading redistributor of surplus food and household products, to redistribute surplus food from its Regional Distribution Centres. This year, it provided more than 2,500 free Christmas lunches to Company Shop’s award-winning social enterprise, Community Shop.

The UK’s fourth largest supermarket also made it easier for shoppers to give back through a warm clothing and post-Christmas clear-out appeal with The Salvation Army and InPost Lockers, allowing customers to donate coats, hats, scarves and gloves – as well as unwanted Christmas gifts in good condition – at InPost Locker donation points in Aldi stores across the UK.

Reducing administrative burden on charities in Scotland

Audit income threshold to increase

Scottish charities are set to benefit from changes to legislation which will raise the audit income threshold from £500,000 to £1 million.

Secondary legislation has been laid in the Scottish Parliament which, subject to approval by MSPs, will come into force on 1 January next year.

That means 93% of Scotland’s 24,500 charities won’t need an audit once the new rules come into force, reducing their administrative and financial burdens.

The change responds to feedback from charities about rising costs and the limited availability of specialist charity auditors.

Social Justice Secretary Shirley-Anne Somerville said: “It’s important that charity regulation not only meets the needs of charities, but is fair and works well.

“We recognise the real financial pressures on charities particularly the challenges they face as a result of the UK government’s increase to employers’ national insurance contributions.

“We have listened and responded with this change to the audit income threshold. This means that only around 93% of charities registered in Scotland will require an audit.

“Charities will still be held to high standards because they are accountable to the public.”

Chief Executive of SCVO Anna Fowlie said: “I very much welcome this move by Scottish Government.

“The threshold for requiring a full audit has been static for decades, placing a burden on small charities who simply can’t afford the cost or the time. There is also a shortage of auditors prepared to take on such small pieces of work.”

The Charities Accounts (Scotland) Amendment Regulations 2025

Aldi opens applications for Christmas food donations programme

Aldi is calling on charities, community groups and food banks in Edinburgh to sign up for surplus food donations from its stores this Christmas.

The supermarket’s Edinburgh stores work with the community giving platform Neighbourly to donate surplus food throughout the year. But with all Aldi stores set to close on Christmas Day, Boxing Day and New Year’s Day, there’s an opportunity for even more groups to benefit from the partnership over the festive season.

Participating charities will be matched with local Aldi stores and can collect fresh and chilled food nearing its expiration date, with Aldi expecting to donate an estimated one million meals to those in need over the festive period.

Luke Emery, National Sustainability Director at Aldi UK, said: “The services our amazing charity partners provide are more in demand than ever during the festive period.

“That’s why we’re committed to offering as much support as we can to the communities we serve this Christmas.”

Steve Butterworth, Chief Executive Officer at Neighbourly, added: “Christmas can be a tough time for many families, and local charities are often a vital lifeline. We know there are still groups out there who could really use the extra help from businesses like Aldi, so we’d love them to get in touch.”

Any charity or community group not already working with Neighbourly can register their interest at neighbourly.com.

Customers can also donate food or household items year-round through community donation points in every Aldi store.

In addition to its long-term partnership with Neighbourly, Aldi has worked with Company Shop since 2022 to manage surplus stock from its Regional Distribution Centres. It sees surplus items sold at discounted prices to members throughout the year, making essentials more accessible and reducing waste.

SCVO: Value of charity donations down by 30% in five years

SCVO analysis shows individual giving fell in real-terms by more than £240 million in 2023  

The value of charity donations is down by almost a third in the past five years, new research from SCVO finds.  

The voluntary sector body’s new report, Individual Giving in Scotland: donations, legacies and fundraising, shows income from individual giving made up 15% of the Scottish charity sector’s income in 2023, down from around 20% in 2018 and previous years. 

Individual giving from the general public was worth an estimated £1.2bn to Scottish charities in 2023. 

But the value of donations has fallen by 30% in real terms since 2018, while fewer individuals are donating to charity – although many who do donate are giving larger amounts. 

Most income streams from the general public were hit hard by Covid, and while many of these income streams have now bounced back, they have generally not recovered to pre-pandemic levels. 

Data from the Spring 2025 Scottish Third Sector Tracker suggests that a rising number of voluntary organisations saw positive growth in both donations and fundraising income, suggesting some reasons for cautious optimism despite the challenging financial environment. 

The voluntary sector body said the falling value of donations underlines the importance of the Scottish Government’s move towards Fair Funding.  

SCVO head of policy, Kirsten Hogg, said: “Individual giving is an important part of the complex patchwork of funding sources that Scotland’s voluntary organisations rely on, and these findings are really concerning – especially when combined with what we know about cuts in public sector funding and the increasing costs and demands that voluntary organisations are facing. 

“The cost of living crisis has hit individual giving hard, impacting on people’s ability to put their hands in their pockets – including for legacies, donations, fundraising and trading.  Over the same period, we saw a reduction in the number of people volunteering their time, and together these paint a worrying picture about the extent to which people are able to support charities and community groups.  

“While we remain hopeful that we may see a slight upturn in both donations and volunteering numbers, the resource difficulties that voluntary organisations are facing mean that many will continue to encounter challenges on a scale we’ve not seen before. 

“Scotland’s voluntary sector is a fundamental part of Scottish society, and demand for support is rising. Vital support continues to be delivered to every community in Scotland, and we must do everything we can to protect organisations from the pressures they are facing.” 

Claire Stanley, director of policy and communications at the Chartered Institute of Fundraising, said: “Charities across Scotland are working harder than ever to support the communities and individuals who need them.

“SCVO’s research highlights the difficult reality facing the sector right now, and we are hearing from our members that demand for services is increasing yearly – yet they are working with fewer resources while trying to deliver more. 

“And while it is encouraging to see many supporters giving generously, we know the cost-of-living crisis has hit people hard in recent years, and the overall drop in donations presents a significant challenge. That is why fair and reliable funding for charities is so important, to ensure that communities across Scotland can continue to count on the support they need, now and in the future.” 

More than one in four Edinburgh residents rely on charities for essential support

Edinburgh residents accessing charity services averaged 27% in 2024, new data analysis reveals

An average of 27% of Edinburgh residents relied on a charity for essential support in 2024, from mental health care and debt advice to medical support, according to new data analysis by Ansvar Insurance. The figure was higher in some areas – up to 30%. 

The analysis, based on the Charities Aid Foundation’s (CAF) Local Giving Report 2025 and interactive data map, emphasises the reliance on charities for essential needs-based services].

But despite the demand, fewer people are giving. CAF’s National Giving Report 2025 reveals the proportion of people donating has fallen to only 50%, a historic low since data collection began in 2016. Of those who gave, the majority supported national rather than local causes.

Adam Tier, Head of Underwriting at Ansvar, an expert insurer for the charity and not-for-profit sectors, commented: “The data illustrates how vital charity organisations are in Edinburgh communities, often addressing gaps left by statutory services, and doing so under financial and operational pressure.”

Additionally, there is a mismatch between where support is needed and where money goes, with some Edinburgh areas seeing 23% of residents relying on charity services and others as high as 30%.

Adam Tier added: “Our experience of working closely with charities has shown just how essential their services are for many individuals and families.

The challenge, and opportunity, for donors and policymakers is to help balance the disparity by directing more resources from affluent communities to those facing the highest levels of need.”

He concluded: “Policymakers should be urged to ease the flow of funding from wealthier areas to those with greater needs.

“Charities must also be supported to build more sustainable and risk-resilient models that can withstand rising demand and operational challenges.

“And for donors, particularly those in wealthier regions, consider a shift in giving towards local and community charities in under-resourced areas, where support can make a big difference.”

uk_local_giving_report_2025Download

GovernanceWiki: A new resource for Scotland’s third sector

A new digital resource hub is now live to help Scotland’s voluntary sector navigate governance challenges.

The Governance Wiki, developed by Midlothian Community Action (MCA) in collaboration with third sector experts across Scotland, has officially launched during Small Charities Week 2025.

This free user-friendly platform offers accessible, up-to-date guidance for charities, community groups, and social enterprises on a range of governance topics—from legal obligations and board roles to compliance and risk management.

Backed by funding from the Tyne-Esk Community Led Local Development Fund, the Governance Wiki was created in response to increasing demand for governance support, particularly among smaller or volunteer-led organisations that often lack the capacity to access traditional training or keep pace with evolving regulations.

“We heard loud and clear from the sector that governance needs to be demystified and made accessible,” said Dr Lesley Kelly, MCA Chief Officer.

“The Governance Wiki brings together trusted resources curated from across the TSI Network, and also signposts users on to excellent existing resources from organisations such as SCVO and Evaluation Support Scotland.”

Collaborative and Community-Driven

The project was shaped through consultation with Third Sector Interfaces (TSIs) and sector stakeholders, with content led by an independent consultant from IBSM Ltd and developed in partnership with Glasgow Social Enterprise Network, Aberdeenshire Voluntary Action, and CVS Inverclyde.

The platform itself was built by Volunteer Edinburgh, drawing on the infrastructure of its successful Volunteer Wiki. Designed for ease of use, the site features intuitive navigation, mobile accessibility, and powerful search functions.

Looking Ahead

MCA is now working with the wider TSI Network to keep the Wiki current and relevant, with plans to:

– Continuously update and expand the content
– Evaluate usage and gather feedback, beginning with an event at the TSI Conference in October
– Collaborate with sector bodies to ensure alignment with governance best practices.

For more information or to explore the Wikis, visit:

Governance Wiki GovernanceWiki

Volunteer Wiki VolunteerWiki – The go-to place for volunteer involving organisations