The Scottish Council for Voluntary Organisations (SCVO) is calling for voluntary organisations and the people who work and volunteer in Scotland’s voluntary sector to apply for its annual Scottish Charity Awards.
Now in its 20th year, the Scottish Charity Awards are designed to celebrate the best of the voluntary sector, and to highlight the incredible organisations, inspiring people and innovative projects that have made an immeasurable difference to the communities they support over the past year.
Applications are now being accepted for 2026, with SCVO placing particular importance on hearing from voluntary organisations and people that reflect the diversity of Scotland’s essential voluntary sector.
All registered charities, social enterprises, campaigning groups, community interest companies and people who work and volunteer in these spaces are eligible to enter.
Last year saw the success of attempts to make the awards simpler and more accessible to as many people and organisations as possible.
There are nine award categories at the Scottish Charity Awards. Six recognise the achievements of organisations, and three recognise individuals.
The award categories are Small Charity of the Year (turnover under £100k), Medium Charity of the Year (turnover £100-500k), Large Charity of the Year (turnover over £500k), Trustee of the Year, Volunteer of the Year, Employee of the Year, Partnership of the Year, Campaign of the Year, and Climate Impact; with the winners to be decided by a panel of judges. For 2026 organisations can only make one application across all categories.
SCVO received an overwhelming response last year with hundreds of applications, and hopes that even more organisations will be inspired to apply this year.
This year, SCVO will be bringing its celebratory awards ceremony, hosted by Sally Magnusson, to Glasgow’s Radisson Blu on 11 June.
Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “Each year, the Scottish Charity Awards stand out as a real highlight for me.
“Across Scotland – and far beyond – voluntary organisations are transforming lives in countless ways, and it’s impossible not to be moved by both the scale of their impact and the diversity of their work.
“Past finalists and winners often share how meaningful it is to receive recognition on a national stage. We also take care each year to refine and refresh the awards, ensuring they remain timely and relevant.
“Whether you’re a small grassroots group powered entirely by volunteers, a large national charity, or anything in between, there’s a place for you. Don’t hold back — put forward a nomination or submit an entry for this year’s awards.”
Applications are open until 12 noon on Tuesday, 17 March 2025 and can be completed on the SCVO website: scvo.scot/scottish-charity-awards/apply.
A partnership to boost outcomes and better support communities
The Scottish Government will develop an agreement with the third sector to strengthen its voice and improve lives, Social Justice Secretary Shirley-Anne Somerville has said.
The Third Sector Partnership will be co-designed with the sector, guided by some of the key principles in the Scottish Council for Voluntary Organisation’s 2026 manifesto, to set out how both can work together to enhance services.
This includes:
protecting the sector’s future and independence with fairer funding
a focus on shared goals to improve outcomes for people and communities
providing greater opportunity to contribute to policy and service design
Ms Somerville said: “Scotland’s third sector is essential to the wellbeing of our communities. From local charities supporting vulnerable families to national organisations tackling poverty and inequality, they reach people and places that government cannot reach alone.
“This partnership will put our relationship with the third sector on a clear, principled footing, strengthening their voice and improving lives. It builds on our commitment to fairer funding and signals that we value the sector as an essential delivery partner and as an independent, strong voice that provides support for people across the country every single day.”
The Scottish Government intends to work with partner organisations and the wider third sector to develop and refine the agreement in the next Scottish Parliament, subject to the outcome of the 2026 Scottish Parliament election.
This is in addition to delivering a Fairer Funding pilot that provides multi-year funding worth more than £130 million over 2025-2027, prioritising organisations that deliver frontline services and tackle child poverty.
Welcoming the Scottish Government’s commitment to a “Third Sector Partnership”, Anna Fowlie, SCVO Chief Executive, said: “Voluntary organisations are at the heart of Scotland’s response to the biggest challenges we face. They make our communities better places to live. Too often, however, public bodies overlook the voluntary sector in planning, decision-making and delivery. That must change.
“To ensure that our sector is properly recognised as an essential partner, we need the right infrastructure in place – to support genuine partnership working between the voluntary and public sectors. Our manifesto sets out why a formalised relationship, set in law, would help achieve this. We welcome all commitments that move Scotland closer to achieving that goal and will engage constructively with their development.
“It is essential that any future scheme is properly resourced, and co-designed with the voluntary sector, so that it reflects, from the start, the experience, evidence and needs of Scotland’s essential sector.”
The Gathering is organised by SCVO and runs on 10 and 11 February 2026.
A Fairer Funding pilot to deliver on the Scottish Government’s top priority of eradicating child poverty. The Pilot commenced in April 2025 and consists of 51 separate grants, totalling over £130m over 2025-26 and 2026-27 to organisations across Scotland.
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.”
The 2026-27 Budget will support a stronger NHS, with a record £22.5 billion for health and social care, expand cost of living support and invest in Scotland’s infrastructure.
Published alongside the latest multi-year Scottish Spending Review, Infrastructure Strategy and Infrastructure Delivery Pipeline, the draft Budget invests almost £68 billion including direct support for families and household budgets.
The 2026-27 Budget includes:
a cost of living package to: help families with funding to trial a programme of activities in a range of primary schools between 3-6pm; a Summer of Sport – free children’s sporting activities, including lessons on how to swim for every primary school child in the country; and a breakfast club for every primary school by August 2027
continued investment in Scotland’s existing cost of living measures, including free prescriptions, free eye examinations, removal of peak rail fares on Scotrail, free tuition fees for young Scots, free school meals for thousands of children, including all pupils in P1 to P5, and free bus travel for under-22s and over-60s
funding to increase Scottish Child Payment to £28.20 per week and investment to allow the introduction of a premium payment of £40 per week for eligible children under 12 months from 2027-28, bolstering efforts to drive down child poverty
extra funding to keep more children out of poverty from funds initially set aside to mitigate the UK Government’s two-child cap, including £50 million of whole family support and a further £49 million for measures to be announced in the Child Poverty Delivery Plan in March
tax choices which increase the Basic and Intermediate rate income tax thresholds to put more money in the pockets of low and middle income earners, maintain current income tax rates and bands, and provide a competitive non-domestic rates relief package worth an estimated £864 million, including measures for pubs, restaurants and retailers
a record £22.5 billion for health and social care, including a record £17.6 billion for NHS boards and resources to begin the national rollout of walk-in GP clinics, making it easier to access same-day appointments
an almost £15.7 billion record settlement for local government to support the services communities rely on including social care and education
significant extra funding for universities and colleges, with colleges seeing a combined increase of £70 million in resource and capital funding, equivalent to a 10% uplift, targeted support to help retrain workers in the oil and gas sector and ongoing commitment to Scotland’s apprenticeships, which this year will provide more than 31,000 Scots with a pathway to sustainable, well-paid jobs
over £5 billion to tackle the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming
£4.3 billion transport funding including investment in railways, the renewal of the ferry fleet, removal of peak season fares for residents of Orkney and Shetland on Northern Isles ferries and nearly £200 million for the dualling of the A9
record investment in new affordable homes
Ms Robison said:“This Budget delivers for families across the country, for a stronger NHS, and for a more prosperous future.
“It will fund landmark policies to continue efforts to eradicate child poverty – investing in a brighter future for Scotland and the children growing up here.
“Almost £68 billion is being invested in 2026-27 and almost £200 billion through the Scottish Spending Review and Infrastructure Investment Pipeline, demonstrating the scale of our ambition for our nation.”
Other measures include:
from April 2027, an Air Departure Tax (ADT) will come into force and the framework offered by the new ADT will be used to introduce a private jet supplement
the introduction by April 2028 of two new council tax bands for the most expensive properties in Scotland, those worth more than £1 million, on an up-to-date valuation
support for high-growth firms to attract private investment and connect entrepreneurs
£200 million for the Scottish National Investment Bank – delivering on the commitment to invest £1 billion in the Bank by the end of the parliamentary term
record funding for police and fire services and an additional £10 million investment in community justice services
a £20 million increase in the culture budget, recognising Scotland is richer because of its world-famous culture and creative sector
support for the creation of a diverse and sustainable supply chain for offshore wind, to boost the economy.
Responding to today’s proposed Scottish Budget, Poverty Alliance Policy & Campaigns Manager Ruth Boyle said: “People in Scotland want a just and compassionate society – but too many feel the system is rigged against them.
“There was some good news today – but we can do much more to make sure that every child in Scotland gets the investment they need for a decent life and a better future.
“Ensuring that every child in primary school gets a healthy breakfast is an excellent investment, because no child should go to school hungry.
“Increasing the Scottish Child Payment to £40 for eligible households with a baby under 1 is welcome and will help families at a time when they face increased costs. However, this must be a first step towards boosting that payment to £40 for every eligible child in the country.
“That is the kind of fundamental investment the Government needs to make if they are serious about meeting the 2030 child poverty targets.
“With Scotland not on track to meet those legally binding targets, we need all political parties to set out their plans to invest in country where no child lives in poverty. Our children can’t wait any longer.
“We can make that kind of investment in Scotland – and there is support for it. In among the Budget documents is new polling from YouGov showing that 54% of people in Scotland believe that Government should redistribute income from the better-off to those who are less well off. Just 29% disagree.
“The Scottish Government must raise revenue to invest in our shared national priorities, like tackling child poverty and reducing the cost of living. It’s right that the Government has turned to those with the biggest assets to contribute more with a tax on private jets and increased council tax for the highest value homes.
“This has to be the start of long-promised, fundamental reform of council tax so that our local councils can provide the services that all of us need, and that are a vital lifeline for so many households in poverty.
“The Poverty Alliance will continue to call for the measures we need to provide a Minimum Income Guarantee that no-one will fall under – including increasing wages, investing in strong public services, and providing a social security system that gives everyone in Scotland a secure foundation to build a better future.
“Today’s budget has some positive steps towards that ambition – but we need to go further and faster if we are to build a Scotland free from poverty.”
Commenting on today’s draft Scottish Budget, Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity, said: “It’s hugely positive to see child poverty being made a top priority in today’s budget.
“The significant funding boost to whole family support and extra resources for third sector organisations will provide a lifeline to families who need help most, right across Scotland.
“But we can’t afford to slow down. Scotland’s legal target to eradicate child poverty demands bold, accelerated action. Life is tougher than ever for many children and families and at Children First we witness this first-hand every day.
“That’s why we urgently need a National Front Door that offers a simple accessible way for families to get the help they need when they need it.”
Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need.
Trussell’s Cara Hilton said: ‘While we welcome the @scotgov‘s £40 SCP rate for babies under 1, we continue to call for an increase to £40 a week for all.
‘Our @TrussellUK data shows food parcels for families with children aged 12-16 in Scotland rose by 7% over the past 5 years. #ScotBudget‘.
Responding to the Scottish Budget and Scottish Spending Review, Anna Fowlie, Scottish Council for Voluntary Organisations (SCVO) Chief Executive, said: “Too often and for too long, voluntary organisations that provide vital services to people and communities across Scotland are treated as the poor relation to mainstream public services.
“They have had to contend with budget cuts, short-term funding cycles, late payments, incoherent decision-making, poor communication, inadequate grant management, and more.
“Reform of the voluntary sector funding landscape is long overdue. The Scottish Spending Review is welcome, giving the Government the long-term outlook to make progress on its commitment to deliver improvements, including multi-year funding for Scotland’s voluntary organisations.
“Welcome too is the Scottish Government’s commitment to multi-year funding for sections of the voluntary sector—this shows, again, what is possible.
“Today we had hoped for more than a recommitment to the ‘first step’ announced last February—the Scottish Government’s ‘Fairer Funding’ pilot.
“We know the benefits of multi-year funding: better staffing, stability, and future planning for the services people and communities rely on. The Government’s own research confirms this.
“Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs, funding that is flexible, sustainable, and accessible.
“We need to see real progress and recognition of SCVO’s Fair Funding asks beyond multi-year funding. Wider reforms are, unfortunately, now unlikely to be seen before the next parliamentary term.
“In the meantime it is essential that in the weeks following the Scottish Budget the Scottish Government support local authorities and voluntary organisations by meeting their commitments to timely notifications and payments.
“We look forward to further engagement on both Fair Funding and charity regulation in the next parliamentary term.”
Shelter Scotland Director, Alison Watson said:“Social housing delivery in Scotland remains too slow, too little and too late for the more than 10,000 children homeless tonight. Today’s budget doesn’t do enough to change these facts.
“Shona Robison’s budget was an opportunity for Ministers to put their money where their mouth is. On the face of it an additional £34 million for social housing, compared to the most recent budget, is a step in the right direction – but it is not enough.
“The extra money will only deliver 36,000 affordable homes by 2030 – more than 26,000 short of where they say they would need to be to deliver their promise of 110,000 affordable homes by 2032.
“The new Parliament will need a new approach and new money to deliver the social homes needed to reduce homelessness. Homes that the government promised, that academics say we need but for which there is still no credible plan to deliver.
“We must be honest about the real costs of failure. Failing to build the social homes we need means rising homelessness, rising child poverty, rising costs for councils, health boards and the taxpayer.”
Responding to the Scottish Government’s Budget, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “It is disappointing to see nothing new in this Budget to adequately respond to the growing number of older people in poverty.
“One in six pensioners now live in poverty across Scotland, a total of 160,000 older people, and we must see more action to support them.
“We want the Scottish Government to set out a clear, targeted strategy to bring down the alarming number of older people in poverty, increase access to the vital Discretionary Housing Payments that can help older renters meet shortfalls in rent, and increase the social security support available to those on a low income in later life.
“With pensioner poverty at its highest level in nearly 20 years, and likely to continue to rise as our population ages, it’s vital all political parties include measures to bring down the levels of poverty in later life in their manifestos’ ahead of May’s Holyrood elections. In a compassionate and wealthy society, we should all be able to live a financially secure, dignified later life.”
Responding to the Scottish Government’s Budget statement which slashed the 40% discount on business rates bills for pubs at the same time as a rates revaluation will lead to higher bills from 1 April, Stuart McMahon, Director of pubgoers group CAMRA Scotland said: “Pubgoers and publicans simply won’t stand for a Budget which will force more of our locals to go to the wall by landing them with bills they simply can’t afford.
“I fear that slashing the 40% discount on business rates bills for pubs to just 15% at the same time as these bills are increasing will be absolutely disastrous.
“Transitional reliefs may sound good but if this Budget still means higher business rates bills than pubs are paying now then this will be the straw that breaks the camel’s back for many hard-pressed licensees.
“Pubs need permanently lower business rates bills so that they can survive, thrive and play their part as vital community hubs.”
The Scottish Government’s budget announcement of further funding for the college sector, which includes a combined increase of £70 million in resource and capital funding, received a qualified welcome. Principal of Edinburgh College, Audrey Cumberford said: “While this is a welcome step in the right direction for college funding, there is still more that needs to be done.
“This increase will help to undo some of the damage done by years of real terms cuts, but more is needed if we are to ensure the future sustainability of our sector.
“There is now a clear consensus across the political spectrum for better funding for colleges.
“I would urge parties to continue to work together to make sure we unleash the true potential of our sector so we can continue to drive economic growth and improve the lives of Scots across the country.”
Responding to the Scottish government’s 2026-27 budget, announced today by Finance Secretary Shona Robison, RCEM Vice President for Scotland Dr Fiona Hunter said: “Scottish Emergency Departments are in the midst of a crisis born of political apathy towards tackling the difficult problems of social care capacity, delayed discharges and the overall issue of hospital flow.
“Today’s budget indicates once again that the Scottish government understands what the issues are. £2.3bn extra for social care, an uplift in frontline NHS spending, specific targeted action on delayed discharge and local engagement – these are all measures we warmly welcome from the government.
“As well as this, our members will be pleased to hear about improvements to training, retention and working conditions.
“However, we’ve been here before. Time after time the reality in our A&Es has got worse, not better, despite claims from the government that the NHS has been on ‘the path to recovery’ in recent years.
“We are seeing more and more patients waiting alone on trolleys in hospital corridors for hours on end, getting sicker and being put at risk of harm.
“This has happened because exit block has not been tackled, despite promises to the contrary from the government.
“The devil will be in the detail and I will reserve judgement for when myself, and the members I represent, see improvements in our Emergency Departments.
“We look forward to continued engagement with the government on how it seeks to tackle hospital flow, and await further information on how the Health Secretary will take today’s promises and turn them into action and, ultimately, improvements for our patients.”
Jonathan Carr-West, Chief Executive, LGIU, said: “This Budget offers some short-term stability for councils, but it ducks the bigger questions about how local government is funded.
There is still no meaningful move towards multi-year settlements, which councils overwhelmingly say they need in order to plan sustainably. Our annual State of Local Government Finance in Scotland research, launched last week, reinforces this.
Incentivising a council tax freeze risks further undermining local fiscal autonomy, while adult social care remains the single biggest pressure on council finances without clear, dedicated funding.
Housing investment is welcome, but spreading it across the country without enabling local flexibility limits its capacity to tackle the areas of greatest need.
Overall, this is a Budget that manages immediate pressures but avoids the structural reform required to put local government finance on a sustainable footing.”
The Existing Homes Alliance (EHA) is a coalition of over 20 housing, environmental, fuel poverty, consumer and industry organisations calling for urgent action to transform Scotland’s existing housing stock.
Lori McElroy, Chair of the Existing Homes Alliance said:“While we welcome the ongoing support to help homeowners, landlords and tenants to make their homes warmer, healthier and more affordable to heat, this remains a drop in the ocean when we have over 800,000 households living in fuel poverty and 44% of Scotland’s homes falling below Energy Performance Certificate band C.
“Scotland has excellent fuel poverty and energy efficiency programmes such as Warmer Homes Scotland, Area-based Schemes and the Social Housing Net Zero Heat Fund, as well as generous grants through the Home Energy Scotland Grant and Loan Scheme, but the gap between what is needed and what is currently being delivered is wide.
“This Budget, as it stands, is a missed opportunity to significantly scale up these programmes which would reduce fuel poverty, improve public health by tackling damp and mould, and prepare the workforce and supply chains needed to deliver our climate change targets – supporting thousands of jobs and economic opportunities across Scotland.”
Joanne Smith, Policy and Public Affairs Manager for NSPCC Scotland, said: “For children to thrive, it’s vital that they have the best start in life, and so we are heartened by the Scottish Government’s commitment to increase the Child Payment for under ones. But we are disappointed that young families now will not reap those benefits, with it starting in more than a year’s time.
“We also welcome the Scottish Government’s renewed investment in the whole family support fund and its work to continue to deliver the Promise. But it is so important that in this it recognises the fundamental need for support for very young children, just like the Scottish Child Payment does, so that families get the help they need right from the start.”
Scotland’s Chief Constable Jo Farrell has responded to the Scottish Government’s tax and spending plans for 2026 to 2027.
Chief Constable Farrell said: “I recognise a £90m cash-terms uplift to revenue funding and an improved capital allocation for policing against a challenging public finance picture.
“I set out the funding requirements for policing in evidence during the Criminal Justice Committee’s pre-budget scrutiny work.
“Police Scotland will continue to engage with the Scottish Police Authority and the Scottish Government to understand the full implications of the budget and develop our planning for the year ahead.
“My focus continues to be on prioritising our frontline to deliver safer communities, less crime, and supported victims as part of our vision for policing.”
Lack of Fair Funding for Scotland’s voluntary sector is having a significant impact on staff, 2025’s Workforce Survey found
Only a sustainable, multi-year funding model for Scotland’s third sector can address growing pressures on workers across the charity sector, new research has found.
The 2025 Voluntary Workforce Survey, carried out by the Scottish Council for Voluntary Organisations (SCVO) – Scotland’s national membership organisation for the voluntary sector – spoke to more than 1,300 people working for charities and voluntary organisations.
Funding insecurity and uncertainty, and general funding shortages impacting on pay and resources, are all having a negative impact on staff, with representatives from across the sector warning that unless action is taken, the situation will not improve.
1 in 4 survey respondents reported being on fixed-term or temporary contracts, rising to 1 in 3 for front-line workers. This is far higher than the wider workforce where only 1 in 10 workers is on a non-permanent contract.
More than a quarter of voluntary sector workers (27%) felt it was quite or highly likely they would lose their job in the next 12 months, twice the rate reported in the wider workforce (13%).
Alongside this stress about their future, the number of staff who felt they had a good work-life balance has also dropped from 60% to 50% between 2015 and 2025.
Many respondents spoke of workloads increasing due to problems recruiting and retaining staff, often a knock-on effect of funding cuts and funding insecurity.
SCVO are calling for the Scottish Government’s own funding principles to align with SCVO’s definition of Fair Funding – developed through significant research and engagement with the voluntary sector.
This includes longer-term funding of three years or more; flexible, unrestricted core funding, which enables organisations to provide security; timely decision-making and the inclusion of inflation-based uplifts and full costs, including core operating costs in grants.
Despite the pressures facing them, workers also underlined their belief in their work, and the meaningful services they provide. 84% of respondents said that making a real difference to people and communities is one of best aspects of their work, while 87% saw their work as useful – far higher than the wider Scottish workforce.
While still generally positive, job satisfaction is down 15 percentage points from 79% in 2015 to 64% in 2025. The main factors driving this downturn in satisfaction appear to be higher workloads and stress, and most importantly funding.
SCVO Chief Executive, Anna Fowlie said: “Scotland’s voluntary sector is powered by people who care deeply about making a difference. Our workforce survey shows a strong sense of purpose among voluntary sector workers, and commitment to the work they do day in, day out.
“But it also highlights the significant strain being put on voluntary sector workers as a result of the financial pressures that have become all too familiar to the voluntary sector.
“Voluntary sector leaders will, of course, be up for the challenge of delivering rewarding, fair work. Too often this is being undermined by public sector funders. Budget cuts, short-term funding cycles, late payments, incoherent decision-making and poor communication have become all-too familiar.
“This needs to change – and our politicians know it. Ahead of the Scottish Budget and Spending Review, the Scottish Government has a real chance to create a funding landscape that is multi-year, sustainable, flexible and accessible. The people and communities served by Scotland’s dedicated voluntary sector workers deserve nothing less.”
Lucinda Godfrey, CEO of Charity Leadership Scotland, commented: “These numbers confirm what many leaders already feel: the work is vital, but the weight of it is heavy.
“At Charity Leadership Scotland, we are committed to collaborating on powerful research that assesses the wellness of Scotland’s voluntary sector and ideally leads to meaningful action to protect and support the individuals and organisations underpinning it.”
The voluntary sector in Scotland employs just over 136,000 people, meaning that 5% of Scotland’s 2.66million workers are employed in the voluntary sector.
Shauna Wright, lead officer for fair work in Unite the Union, commented: “Unite the Union stands with care and not‑for‑profit workers who have faced underfunding in their sector, resulting in higher stress levels and concerns about their future employment opportunities in an industry where they have not felt valued for the work they provide.
“Urgent action is needed to secure fair pay terms and conditions.”
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.”
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.”
Leading voluntary sector body outlines priorities for next Scottish Government
Scotland’s next Government must play its part in maintaining a strong, sustainable voluntary sector, a leading third sector body has said.
The Scottish Council for Voluntary Organisations (SCVO) has published ‘Scotland’s Essential Sector’, its manifesto for next May’s Scottish Parliament elections.
The sector is instrumental in the delivery of public services. Public sector funding makes up 40% of the voluntary sector’s income, with around £1.6billion from local authorities and £1bn from the Scottish Government – much of it through contracts and grants.
The manifesto has been shaped by the sector itself – with organisations asked what’s working, what’s not, and what needs to change.
Scotland’s Essential Sector sets out what the sector needs to be stronger, more sustainable, and more empowered – so it can play its full role delivering for communities, and tackling some of the biggest challenges we face as a country.
The six priorities outlined in the manifesto are:
• Delivering fair funding – reforming public sector funding to be multi-year, flexible, sustainable, and accessible.
• Creating a partnership of equals – establishing a formal, long-term partnership between government and the sector.
• Commissioning with communities – embedding ethical commissioning and ending default to commercial procurement.
• Modernising regulation – launching a comprehensive, independent review of charity regulation.
• Securing the future of volunteering – reversing the long-term decline in participation through targeted action.
• Protecting the sector’s voice – introducing anti-SLAPP legislation and safeguarding public interest advocacy.
SCVO Chief Executive Anna Fowlie said: “Voluntary organisations are at the heart of Scotland’s response to the biggest challenges we face — tackling poverty, improving health and wellbeing, supporting children and families, strengthening local economies, advancing climate action, building skills for the future, and much more besides.
“From mental health support to employability programmes, from sports clubs to social care, from community transport to creative arts — voluntary organisations deliver vital support to people and communities in every part of Scotland.
“They are trusted, rooted in communities, and are at the heart of a healthy society, a fair economy, and a strong democracy. They are Scotland’s Essential Sector.
“As we look ahead to the next Scottish Parliament elections, one thing is clear: government cannot meet the needs of people and communities alone.
“The next Scottish Government needs a strong, sustainable voluntary sector.”
Full details of Scotland’s Essential Sector can be found online:
Foysol Choudhury MSP Stands with Unsung Community Heroes in Edinburgh
Foysol Choudhury, MSP for Lothian, calls for greater support and funding for local community organisations in Edinburgh, such as the Polish Family Support Centre, following a series of ruthless budget cuts from the Scottish Government.
Foysol Choudhury MSP has issued a heartfelt and urgent appeal for greater support and funding for local community organisations in Edinburgh. During a recent visit to the Polish Family Support Centre, Mr. Choudhury emphasised the critical role these organisations play in encouraging community cohesion and providing essential services to underrepresented groups.
This comes after the Scottish voluntary sector was struck with further budget cuts. The Scottish Council for Voluntary Organisations (SCVO) have revealed that real-term cuts to public funding have surmounted to over £177m since 2021, where more than 76% of third-sector organisations report financial challenges because of inflation and rising costs.
These cuts are not just numbers; they represent the struggles of countless individuals and families who rely on these vital services.
This situation may only worsen with changes to employers’ National Insurance contributions, imposed by Labour Chancellor Rachel Reeves, which could leave the sector with another £75m to find each year.
In his recent visit to the Polish Family Support Centre, Mr. Choudhury witnessed significant challenges due to limited funding and resources.
As a one-stop-shop for all, the Polish Family Support Centre provides a wide range of services, including professional counselling, workshops, and support groups, all aimed at helping Polish families and individuals navigate the complex nature of life in Scotland.
However, the Centre’s ability to expand its reach and impact has been drastically obstructed by financial constraints. According to the Office of the Scottish Charity Regulator, the Polish Family Support Centre has lost hundreds of thousands in funding, and with over 4,040 yearly sessions in 2023 – an increase of 2,000 from 2018 – it is clear that the Polish Family Support Centre needs further backing.
Other community organisations such as the Edinburgh Children’s Hospital Charity, Milan SWO, Edinburgh Diwali, the Bihari Community of Scotland, and other third sector organisations are also crying out for support.
Mr. Choudhury’s call to action comes at a time when many third-sector community organisations struggle to secure funding and resources. He has been a vocal advocate for these groups, hosting roundtable discussions at the Scottish Parliament to address the current funding model and barriers to access.
Here, the Scottish Government and other public bodies need to take a fair funding approach, moving to inflation-based settlements of three years or more, which consider costs such as uplifts in the real living wage.
Community organisations, such as the Polish Family Support Centre, continue to exist as a symbol of hope for the people of Edinburgh, driven by a mission to support and empower individuals and families.
Commenting, Foysol Choudhury MSP said:“Community organisations exist as the backbone of our society. They offer vital services, from psychological support to advocacy, yet they remain overlooked and underfunded.
“It is crucial that we recognise their contributions to our community and provide them with the necessary support to continue their work.
“Edinburgh and the rest of Scotland must address the barriers to funding and ensure that smaller community-based organisations have access to the resources they need, as their work is crucial in promoting social inclusion and supporting minority groups.
“I urge everyone from policymakers to residents, to recognise the invaluable work these organisations do. They are not just service providers; they are the heart and soul of our communities.
“By supporting them, we are investing in a more inclusive, compassionate, and resilient society. Let’s come together to ensure that nobody is left behind.”
Public sector spending on the third sector in Scotland has frozen
Public sector funding to Scotland’s voluntary sector has dropped by £177million in real terms since 2021, a new report has found.
Research by the Scottish Council for Voluntary Organisations (SCVO) shows the amount of public money provided to third sector organisations froze between 2021 and 2023.
The SCVO ‘Public Sector Funding’ research report found a 5% cut in real-terms funding, meaning organisations across Scotland are being asked to continue providing vital frontline services with a pot of money now worth less.
SCVO has consistently called for public bodies to implement a new Fair Funding model to help charities, voluntary groups, and social enterprises to thrive and provide greater security for our people.
The national membership organisation for the voluntary sector said this must include longer-term funding of three years or more, and sustainable funding that includes inflation-based uplifts, full cost recovery, including core operating costs, and pay uplifts.
Public sector funding – around half of which comes from local authorities, and a third of which comes from the Scottish Government – should also accommodate paying staff at least the Real Living Wage, which organisations in receipt of public money are required to pay their staff.
SCVO also continues to push for funding to include provision for the additional costs that medium and large voluntary sector employers will face as a result of increases to Employer National Insurance Contributions.
The calls for Fair Funding come at a time when voluntary sector organisations are increasingly required to make use of their reserves, with SCVO research showing a decline in cash reserves – particularly in those organisations who deliver public sector contracts.
These pressures, including the real-terms cut in public sector funding, underline the need for the Scottish Government and other public bodies to implement Fair Funding across the country.
SCVO Chief Executive, Anna Fowlie, said: “We know the times are tight for the public sector, and we appreciate that in that context even standstill funding is sometimes seen as a win.
“However, at a time when demand for support from voluntary sector services is rising, including as a result of cuts in public services, it is simply unsustainable to expect the voluntary sector to find the £177million shortfall that these figures tell us our sector is facing.
“Voluntary organisations do not have ready access to other sources of funding: public fundraising and trading income has also been impacted by the cost of living crisis. That leaves many organisations using their reserves to fund this deficit, which may provide a temporary solution, but over the long term is wholly unsustainable.”
SCVO Head of Policy and Research, Kirsten Hogg, added: “In addition to rising demand and rising costs, voluntary sector employers face additional pressures going into the new financial year.
“Medium and large voluntary organisations that employ staff will be hit by changes to employers National Insurance contributions, leaving the sector to find at least an additional £75m annually.
“Against the backdrop of reduced real terms budgets, and a lack of other sources of income, it is little surprise that nearly one in ten of Scotland’s 46,500 voluntary organisations is unsure whether or not they will still be operating in 12 months’ time.”
