Tag: third sector

Scottish Budget: Delivering for families and public services?

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.

Scottish Budget 2026-27

Scottish Spending Review 2026

Infrastructure Strategy

REACTIONS:

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.

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First

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.”

COSLA: Budget Reality

26-01-13 Budget Reality 26-27 FINALDownload

 New research underlines pressures on third sector workforce and services

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 urged to tighten protections amid fraud reports

Specialist insurer warns voluntary sector organisations not to overlook often-forgotten security measures, as awareness week approaches

Charities across the country are being urged to review their fraud prevention measures following latest data showing that 10 charity fraud incidents were recorded across Scotland in the past 13 months.

Data from Action Fraud’s Fraud and Cyber Crime Statistics Dashboard shows that these 10 incidents resulted in total losses of £31,700.

The figures reflect crimes reported to police, which may include cases where charities were directly targeted or where members of the public were deceived by fraudsters posing as charitable causes.

Ansvar Insurance, which specialises in providing cover to the charity and not-for-profit sectors, is highlighting the importance of vigilance ahead of Charity Fraud Awareness Week (8th to 12th December 2025), which aims to raise awareness and share good practice across the voluntary sector.

Adam Tier, Head of Underwriting at Ansvar, commented: “These figures represent real money that should have gone towards genuine charitable causes. Whether the victims are charities themselves or members of the public misled by fraudulent fundraising, the impact on trust in the sector is the same.

“The voluntary sector faces unique vulnerabilities, such as limited resources and high staff turnover, which criminals can exploit. As we approach Charity Fraud Awareness Week, we’re encouraging organisations to look beyond the basics and strengthen their long-term fraud resilience.”

While most charities are familiar with standard security protocols, Ansvar is drawing attention to three often-overlooked protective measures that organisations should not neglect:

  1. Review volunteer and staff access rights: People change roles, leave or take on new responsibilities. Regularly reviewing who has access to systems, bank accounts and data helps prevent both accidental and deliberate misuse.
  2. Validate all supplier or partner changes: Fraudsters will potentially impersonate trusted suppliers. Always confirm any change in bank or contact details by calling a known number, not replying to the email received.
  3. Audit cloud and shared access permissions: Many non-profits use cloud services for documents and donor data. Conduct a quarterly review of all user accounts and access permissions. Over-permissioned or dormant accounts are common entry points for cyber criminals looking for sensitive data.

Adam Tier added: “Charity Fraud Awareness Week is an opportunity for every organisation, large or small, to pause and review its controls.

“Prevention doesn’t always mean big budgets; it’s often about simple checks and staying alert to changes that don’t feel quite right.”

To help local organisations assess their vulnerabilities, Ansvar has published a cyber risk management guide on its website :- 

https://ansvar.co.uk/resources/risk-management-guides/protection-from-cyber-attack/. 

Inspiring Scotland: Supporting communities across Scotland

Scotland’s third sector is the backbone of communities across the country — delivering vital, person-centred support in the face of rising demand and financial uncertainty.

Our newly published Annual Report showcases how, in 2024/25, we worked alongside charities and funders to strengthen resilience and unlock new opportunities for impact. 

The organisations we support are often the first to respond to local needs, tackling poverty, inequality, mental health, and social isolation.

Our venture philanthropy model is designed to ease the burden, combining funding with tailored development support to help charities grow and adapt to changing circumstances. 

  • In 2024/25, we managed over £47 million in funding across 16 programmes, supporting 333 organisations.  
  • Our Specialist Volunteer Network delivered 460 projects, contributing 2,613 hours of pro bono support — equivalent to over a year and a half of full-time work.  
  • As well as continuing to focus on delivering longer term funding for the sector, we also launched new initiatives, including the Neighbourhood Ecosystem Fund, supporting 14 local nature restoration projects, and expanded our Intandem mentoring programme into Dundee, thanks to new philanthropic investment.  

We’ve worked hard to keep funding flowing, championing the sector and demonstrating the difference it makes.  

Through new funding collaborations and strategic support, we’ve built new philanthropic partnerships that extend the impact of our model to others. 

Recognising volunteering as a powerful force for good, we continued to bring in skills and expertise through our Specialist Volunteer Network. Time, energy, and professional skills are vital forms of philanthropy, and we’ve seen how this generosity strengthens organisations and builds resilience. 

We’ve increasingly used the insight gained from our work to inform and influence policy. This year, we’ve done more of this work than ever before — sharing evidence, amplifying voices, and contributing directly to policy discussions. We recognise the responsibility and privilege of our position, which allows us to take messages from the frontline straight to decision-makers. 

Our work is rooted in trust, collaboration, and a shared ambition for lasting impact. Whether managing Scottish Government programmes or unlocking new sources of investment, we are committed to building a Scotland where every person has the opportunity to thrive. 

Thank you to our partners, funders, volunteers, and the organisations we support. Together, we are making a difference. 

Annual-Report-2024-25Download

Read the full Annual Report.

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

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.” 

Scottish Government commits another £300,000 to support Third Sector

MORE FUNDING TO SUPPORT COMMUNITY COHESION

The Scottish Government will provide an additional £300,000 this year to support projects that build strong and resilient communities across the country.

The investment, announced by Equalities Minister Kaukab Stewart, comes on top of the £7.9 million already allocated to third sector organisations for 2025-26. This existing funding supports anti-racism work, interfaith dialogue, hate crime prevention and asylum and refugee integration projects.

The additional funding will focus on building community cohesion across a broad range of local initiatives.

Ms Stewart said: “Community organisations play a vital role in supporting integration and bringing people together through their projects.

“The additional £300,000 will help to tackle division and promote the shared values that strengthen our communities, particularly at a time when hostile rhetoric is creating fear and uncertainty.

“I have witnessed first-hand many inspiring projects recently, including the multicultural Pitch-to-Plate meal event at Hibernian Football Club. This demonstrates how local initiatives can successfully unite people from different backgrounds, cultures and faiths through shared activities and mutual support.

“We cannot and will not allow division and hostility to define us – the Scottish Government will continue to invest in building the strong, connected communities that all of us want to see.”

Scotland’s Essential Sector: SCVO publishes 2026 election manifesto

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:

https://scvo.scot/about/manifesto-2026 

Reducing drugs harm

Funding enables more people to access support

More people impacted by drugs have received support after the Scottish Government funded 225 community-based projects across the country.

The National Drugs Mission Funds distributed almost £13 million in grants in 2024-25 through the Corra Foundation. In 2024-25, there were more than 51,000 interactions with support services, an increase from 33,613 the previous year thanks to sustained funding.

The multi-year funding helps people in crisis and provides continued support throughout their recovery, including access to medication assisted treatment and residential rehabilitation.

Drugs Policy Minister Maree Todd said: “These funds are enabling vital, community-led work that supports people affected by drug harm with care, compassion, and dignity.

“The projects are focused on a wide range of areas, including recovery, mental health, reducing stigma and supporting young people.

“This report highlights the progress and impact of these projects and the types of support provided directly to people, their families and communities impacted by drugs. I have been especially struck by the creativity, resilience and partnership shown by organisations delivering support which is rooted locally, with more than 51,000 interactions this past year.

“I’m proud to continue the work of those who came before me, and to be part of a mission that is turning hope into action. My sincere thanks go to Corra, and to every person and project involved – these efforts are saving lives and helping to build a Scotland where recovery is real and support is always within reach.”

Corra Foundation Chief Executive Carolyn Sawers said: “Corra is honoured to work in partnership with organisations that are making a meaningful difference to the lives of people affected by drug use in Scotland.

“This report recognises the vital work of these projects, the committed efforts to reduce drug harm and the challenges encountered in addressing the issue.

“It makes clear the importance of access to multi-year funding to provide security for organisations to sustain their work.”

national-drugs-mission-fundsDownload

Edinburgh’s Regenerative Futures Fund Moves into Next Phase

Edinburgh’s pioneering Regenerative Futures Fund has reached a major milestone in its long-term effort to shift power and resources into the hands of communities tackling poverty, racism and the climate crisis.

From 97 proposals, a Panel, made up of 15 Edinburgh residents with direct experience of poverty and racism, selected 34 projects to advance to the next stage of funding.

50% of selected projects are led by Black and People of Colour, reflecting the city’s commitment to dismantling racism, tackling the climate transition, ending poverty, and addressing the interconnected challenges shaping a just and thriving future.

Included among the projects initially selected are local initiatives Lauriston Farm Collective, Muirhouse Youth Development Group and R2 (above).

The Resident’s Panel has spent months listening, learning and working through each application with care, mapping projects across the City by geography, theme, and approach. Projects selected will enter the capacity-building phase, from August until December, giving groups the time, space and funding to develop full proposals for long-term, unrestricted funding.

Proposals submitted at the start of 2026 will then be considered for an annual award of £100,000, for ten years. Between 10 and fifteen projects will be selected.

However, the work of the fund goes beyond this as all 34 groups, and dozens more from the initial 97 projects, have registered interest in joining the Regenerative Futures Fund wider network for peer learning, collaboration and collective action – a shared movement for the future of Edinburgh.

“We’re here to build movements, as well as to distribute funds,” says Aala Ross, Co-Head of the Fund. “If we accept that the Fund exists to redistribute power, not just resources, we can reimagine our role as something more powerful.

We nurture conditions for collective power, we build trust across difference, and we learn together, to challenge the systems that shape our lives.”

Leah Black, Co-Head, adds: “We’re flipping the usual script on funding. We’re saying: here’s the time, here’s the space, here’s the support – now let’s imagine and build the future we actually want.

“That’s what makes this different. It’s rooted in care, equity and collaboration, and it’s led by the people who live and breathe these challenges every day.”

The Regenerative Futures Fund is backed by some of the UK’s biggest charitable funders, including the Esmée Fairbairn Foundation, The National Lottery Community Fund, The Robertson Trust, Turn2us Edinburgh Trust, Foundation Scotland and City of Edinburgh Council.

Crucially, these funders have stepped back from decision-making, placing control firmly with local people.

City Council Leader Jane Meagher said “Five years ago, Edinburgh became the first UK city to set a target date to end poverty. To achieve this, we must be ambitious and drive the change that is so greatly needed, which means being brave and being innovative.

“We know this is a challenging time for the third sector and we’re working to increase stability for organisations. By giving greater, longer-term support to community projects, they can get on with what they do best – supporting residents, tackling poverty, and changing lives.

“Edinburgh’s Regenerative Futures Fund is a unique new fund to help us achieve just that and end poverty together. 

“I’m excited to see a shortlist drawn up by individuals with lived experience of poverty and looking forward to funding awards being presented early next year.”

In September, the wider network of applicants and community groups will come together for the first time to begin a city-wide journey of learning, connection and shared action. 

The Fund is also inviting new partners, funders, donors, philanthropists and supporters to join this long-term collaborative effort to reimagine how resources are shared in the city.

For more information, including the list of the 34 projects in the capacity-building phase, visit Services 4 — Regenerative Futures Fund | Working Together Towards A Regenerative And Just Future For Edinburgh | Community Fund | Scotland – UK