third sector – Page 2 – The NEN

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-2024-25 Download

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

Equalities Minister @KaukabStewart has announced additional @scotgov funding of £300,000 this year to support projects that build strong and resilient communities across the country.

More info ➡️https://t.co/qzTSRtaqKO pic.twitter.com/sf3Vie2BGs
— Scot Gov Fairer (@ScotGovFairer) September 25, 2025

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-funds Download

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

Edinburgh’s community groups welcome emergency council support for the third sector

Local organisations have welcomed moves to provide greater support to the third sector in Edinburgh.

Following the launch of emergency funding and an extensive review of how the city works with not-for-profit groups to prevent poverty, Councillors heard how moves to bring stability to the sector are being well received.

Over £3 million has been injected by the Council towards at risk groups this year, with an extra £284,192 in Third Sector Resilience Funding agreed by elected members at a full Council meeting last week (Thursday 28 August).

The one-off emergency support has been provided to third sector organisations in Edinburgh who are working to end poverty in the city but who have been faced with growing financial challenges.

The final phase of this funding will help small and medium-sized charities this winter, with 31 organisations agreed to receive up to £10,000 each towards running costs.

With the Council moving towards greater partnership working to prevent poverty, extensive engagement on third sector support has also taken place – including a 14-week consultation to gather experiences and concerns of organisations in Edinburgh.

Involving over 239 workers from at least 100 organisations, this engagement will shape future opportunities to better collaborate and support the third sector, with the aim of helping the city’s most vulnerable and preventing inequality.

In deputations presented to members of the Policy and Sustainability Committee last week (Tuesday 19 August), work was welcomed by groups including Edinburgh Community Food, NESSie (North Edinburgh Support Services consortium), Feniks and the Cyrenians. Feedback has been strongly positive, recognising the speed and efficiency of the support the Council has provided.

Benjamin Napier,(above, left) speaking on behalf of the Third Sector Reference Group, said: “I’d like to give my thanks to Council officers for their excellent role working very effectively with the third sector to make sure funding gets out quickly.

“There has been a diligent approach to how we work together and the key now is to look at the next stages of funding.”

Ewan Aitken, CEO of Cyrenians, said: ““It’s good to see a problem turned into an opportunity by the Council.

“We have strong communities and we need to be prevention-led. We need reform and a long-term approach to supporting charities in the city.

“I hope the Council can be bold, take risks and focus on anchor organisations to make this good work transformative.”

Council Leader, Jane Meagher, said: “The £3 million we’ve provided in emergency funding has been vital at a time when the cost of living is high. This final allocation of funding will support even more projects, from advice for young parents to help with clothes and funeral costs.

“Edinburgh’s third sector sits at the heart of our work to tackle poverty, but it is an incredibly difficult time for community groups in Scotland. The engagement we’ve now carried out reveals many organisations are in a precarious position as they experience changes to funding and face greater demand for their services.

“It has never been more important to reset the relationship between the public and third sectors and I’m proud of the work we’ve carried out to truly listen to and learn from those involved, so that we can work to get it right.

“We need to improve how we work together to prevent poverty in our city, and I’m grateful to the hundreds of third sector workers who have spoken to us.”

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

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

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

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

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

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

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

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

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

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

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

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

uk_local_giving_report_2025 Download