Finances proving biggest challenge to charities as rising costs bite

 Research also found a third of organisations were dipping into reserves

An overwhelming majority of charities in Scotland have reported financial challenges as their biggest source of concern. The Scottish Third Sector Tracker has found 7 in 10 charities cite financial challenges as their biggest challenge, up significantly in just two years. 

Data from the tracker observes the emergence of the sector from the Covid-19 pandemic through 2021, followed by the development of the cost-of-living crisis and associated organisational concerns during 2022 and 2023.  

Throughout the waves of research, the frequency with which organisations have reported financial challenges has hugely increased, and in the most recent data collection (April 2023), these were the most frequently reported challenges (71%), compared to just less than half of respondents (47%) just two years ago.  

It is concerning that a third of organisations reported having made use of their financial reserves in the 3 months leading into April 2023, an increase compared to the same period in 2022.  

Almost half (44%) of the organisations using their financial reserves believed that this situation is unsustainable. 

Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “Charities, community groups and social enterprises can be financially fragile at the best of times, and the Tracker research clearly demonstrates that we are currently far from the best of times.

“We are seeing that voluntary organisations are experiencing more financial challenges now than they did during the pandemic due to rising costs, particularly of energy and wages.  

“Voluntary organisations make an invaluable contribution to Scotland’s social and economic fabric and the people, communities and causes they support are experiencing more pressures than ever before. Public giving of money and time have been hit by the cost-of-living crisis and we are seeing many organisations having to dip into their reserves just to keep going.

“Reserves are there as a safety net and are not meant to prop up business as usual. It’s akin to households having to buy their groceries on a credit card, simply storing up more problems for the future and threatening their medium to long-term viability. 

“Everyone can play a part in supporting the sector, whether it is government and councils ensuring there is fair and sustainable funding in place, philanthropic funders investing their money wisely and the public giving when they can.

A good start would be Scottish Government passing on the money that the UK Government allocated for energy bills relief to see charities through the winter months.” 

The Scottish Third Sector Tracker is a growing research community made up of representatives from third sector organisations based across the whole of Scotland, who are willing to share their experiences, views and concerns as the sector faces both new and ongoing challenges. 

The Tracker is run by an independent research company called DJS Research on behalf of SCVO, the Scottish Government, the William Grant Foundation and the National Lottery Community Fund. 

Those involved in the running of a third sector organisation operating in Scotland are invited to represent their organisation as a member of the Scottish Third Sector Tracker. 

An Executive Summary of the Scottish Third Sector Tracker’s First Phase of research can be found here:

https://scvo.scot/policy/research/evidence-library/2023-scottish-third-sector-tracker-waves-1-to-6-executive-summary 

Forth & Inverleith Voluntary Sector Forum meets tomorrow

Forth and Inverleith VSF on Sep 28, 2023 10:00 AM (Zoom link and agenda below)

Join Zoom Meeting:

https://us02web.zoom.us/j/84343600722?pwd=V05yVHpPTnhLRGp0Wk1WTkhuMVhnUT09

Meeting ID: 843 4360 0722

Passcode: 801341

Agenda:

  1. Welcome and Introductions
  2. Estate Investment Programme Forth and Inverleith – George Norval (CEC)
  3. Introduction from Community Centre Lead at EVOC – Robert Scott
  4. Group updates (any new projects/services)
  5. AOB

SCVO and partners unveil HR for Creatives project

The Scottish Council for Voluntary Organisations (SCVO) has unveiled the 20 organisations who will be a part of a groundbreaking HR for Creatives project. 

SCVO has partnered with Creative Scotland and Project Manager Kathryn Willens on the action research project to explore the support needed for micro and small creative organisations.

The project incorporates research into participant organisations’ learning journeys in order to share findings so that the wider arts, screen and creative industries can learn from this project. 

This will allow the project partners to learn from organisations that access support and to identify where there are key and shared opportunities, challenges, strengths and weaknesses for the sector. 

SCVO’s HR Service will now work with them to support them on their HR journey, including an audit of their HR policies and procedures, one-to-one advice and guidance, as well as access to webinars and a peer network.  

The partners hope this will Improve people management for arts, screen and creative industries organisations, starting with legal compliance and moving beyond this to help organisations create a space and place to work where their people – staff and freelance practitioners – thrive and where fair work drives success, wellbeing and prosperity.

SCVO, Scotland’s national membership body for the voluntary sector, received over 80 applications from micro to small sized arts, screen and creative industries organisations from across Scotland. All applications were of a high standard, with only 20 places available. 

The organisations represent a wide range of artistic practice including animation, digital art, theatre, film, poetry, music and dance. (1)

The number of applications highlights the demand for HR support in the sector especially from micro to small employers, with SCVO planning to offer some support to the organisations that didn’t make it to the shortlist through access to webinars and resources. 

SCVO is delighted to be working with Creative Scotland, Kathryn, and research partner Tialt on the HR for Creatives action learning programme, funded by The National Lottery through Creative Scotland. 

The programme will kick off in September 2023 and continue for 12 months. 

Caroline Christie, SCVO’s Head of HR, said: “We are thrilled with the response to the HR for Creatives programme. This level of interest highlights arts, screen and creative industries organisations commitment to HR and to Fair Work as well as a need for this kind of support. 

“HR for Creatives aims to offer support and learning to improve people management for arts, screen and creative industries organisations, support that will enable organisations to create work cultures where their staff and freelancers can thrive and where fair work drives success, wellbeing and prosperity.

“SCVO’s HR Service and the HR for Creatives project team are very excited to start working with the 20 shortlisted organisations and with the research partners, Tialt.”  

Ashley Smith-Hammond, Creative Industries Officer at Creative Scotland, said: “As Creative Scotland develops its work in response to the Fair Work agenda, we’re committed to empowering organisations in the arts, screen and creative industries to best support their workforce. 

“We’re pleased to partner with SCVO on this vital programme, which responds to challenges that small and micro creative businesses have in accessing appropriate, specialist support around people management.

“In this challenging economic context, it’s an investment in more competent, confident creative businesses and better experience for those in the creative workforce.”

HR for Creatives organisations 

Africa in MotionGlasgow
An Tobar and Mull TheatreTobermory
Art Link CentralStirling
Civic Digits CICEdinburgh
Company of WolvesGlasgow
Cove ParkHelensborough
Creation Mill CICDumfries
Creative DundeeDundee
Forgan Arts CentreFife
ImaginateEdinburgh
Lung Ha Theatre CompanyEdinburgh
Media co-opGlasgow
Print Clan CICGlasgow
Produced MoonGlasgow
Push The Boat OutEdinburgh
Regional Screen ScotlandEdinburgh
Scottish Artists UnionGlasgow
Scottish Sculpture WorkshopLumsden
Sound FestivalAberdeen
The Work RoomGlasgow

More support for Edinburgh’s Ukrainian community

Funding announced ahead of Independence Day of Ukraine

Edinburgh Voluntary Organisations’ Council (EVOC), Volunteer Edinburgh, The Welcoming Project, Feniks and the Association of Ukrainians in Great Britain’s (AUGB) Edinburgh branch are sharing in more than £200,000 from the Scottish Government’s Ukraine Programme funding pot.

Migration Minister Emma Roddick said: “People all over Scotland, and particularly in Edinburgh, have welcomed those fleeing the war in Ukraine into their communities, their schools and workplaces and their homes.

“Third sector organisations have been at the heart of this warm welcome, supporting Ukrainians every step of the way. They have hosted English lessons, created social hubs and helped people to access local services.

“They have also showcased what can be achieved when national and local government, and the third sector work together, and this funding will help make sure this important partnership working continues.

“As we look ahead to the Independence Day of Ukraine, our message to Ukrainians remains clear: we stand with you, and we want Scotland to be your home for as long as you need it.”   

The City of Edinburgh Council Leader Cammy Day said: “Third sector organisations here in Edinburgh have been a cornerstone of the partnership effort to support displaced Ukrainians over the last 18 months.

“I’m sure I speak on behalf of all colleagues when I say that they have made a real and tangible difference to the lives of the people who have fled their country following Russia’s illegal war against Ukraine.

“It is right and proper that these organisations are set to benefit from the Scottish Government’s Ukraine Programme funding.

“I have seen firsthand the difference that these organisations make in our communities across a wealth of different areas. From language classes to support with health and wellbeing to helping people into work and education and so much more their impact cannot be understated.

“I look forward to working closely with our third sector partners as we move forward in supporting our Ukrainian friends in the capital.”

Details of organisations outside Edinburgh receiving funding will be confirmed in due course.

Charities Regulation Bill passed

Strengthening charity law and maintaining public trust

The Scottish Parliament has voted unanimously to pass the Charities (Regulation and Administration) Bill.

The Bill will improve the accountability and transparency of charities and increase the powers of the independent Scottish Charity Regulator (OSCR).

Social Justice Secretary Shirley-Anne Somerville said: “The charity sector plays a vital role in society and support for charities is high amongst the public who volunteer and donate to thousands of charities across the country.

This legislation makes practical improvements and updates to existing charity regulation increasing transparency and to help ensure public trust is maintained.

“Scottish charities have a combined income of £14 billion each year so it is crucial that the way they are regulated remains fit for purpose. These reforms will support the effective regulation of charities, helping them to have the best possible environment to thrive.

“I am delighted that the Parliament has unanimously backed this legislation from the start.”

Provisions in The Charities (Regulation and Administration) (Scotland) Bill include:

  • updating the criteria for the automatic disqualification of charity trustees and extending them to individuals with specific senior management positions in charities
  • removal from the Scottish Charity Register of unresponsive charities that fail to submit statements of account
  • a requirement for all charities in the Scottish Charity Register to have and retain a connection to Scotland
  • a requirement on OSCR to publish the statements of account for all charities in the Scottish Charity Register
  • requirements on OSCR to include charity trustee names in the Scottish Charity Register, to keep an internal schedule of charity trustees’ details and to create a publicly searchable record of charity trustees removed by the courts

Success for local charities at Scottish Charity Awards

Two Edinburgh charities have each won a top award at the Scottish Charity Awards run by the Scottish Council for Voluntary Organisations (SCVO).

Fresh Start Scotland, a charity working to help end homelessness, and Feniks, which supports the integration and wellbeing of the Central Eastern European community in Edinburgh, won their respective awards at a celebratory awards ceremony hosted by Sally Magnusson at the Sheraton Hotel in Edinburgh on Friday (23 June).

Run annually by the Scottish Council for Voluntary Organisations (SCVO), the Scottish Charity Awards celebrates the best of the voluntary sector and this year’s shortlist included 32 individuals and organisations from charities, social enterprises and voluntary groups across the country.

West Pilton-based Fresh Start Scotland won the Community Action award. Biddy Kelly, managing director, Fresh Start Scotland, said: “We would like to say how delighted we are to win this prestigious award.

“We have only been able to achieve this thanks to the thousands of people who support us, the dedication and hard work of all our staff and volunteers and to positive and supportive partnerships.”

Feniks won the Campaign of the Year award for their campaign ‘Shed your armour, show the scars’. Magda Czarnecka, chief executive, Feniks said: “Winning the Campaign of the Year category is a humbling and exhilarating experience.

“This victory is a testament to the unwavering commitment of our Community Ambassadors, who dedicated their time and skills to address the most stigmatized challenge within the Polish community.

“We extend our heartfelt gratitude to our partners, See Me Scotland, who believed in our cause and stood beside us on this inspiring journey. This award strengthens our commitment to continue advocating for change and creating a brighter future for the Polish community in Scotland.”

The winner of each of the nine categories was decided by a judging panel, with the tenth People’s Choice category winner decided by the public with over 14,000 votes cast online.

The winners for the Scottish Charity Awards 2023 are:

  • Climate Conscious award: Climate Action Strathaven
  • Campaign of the Year award: Feniks
  • Community Action award: Fresh Start Scotland
  • Volunteer of the Year award: Andrii Zhehestovskyi – Libraries & Information Services Dundee
  • Employee of the Year award: Paul Sheerin – Beatson Cancer Charity
  • Pioneering Project award: Quarriers
  • Trustee of the Year award: Vongayi Mufara – Amma Birth Companions
  • Digital Citizen award: Simon Community Scotland
  • People’s Choice award: Glasgow Children’s Hospital Charity
  • Charity of the Year award: Diversified

Anna Fowlie, chief executive of SCVO, said: Anna Fowlie, chief executive of SCVO, said: “What a fabulous event to celebrate the achievements of organisations and people across the voluntary sector in Scotland.

“Our finalists and winners are all shining examples of the great things happening thanks to the commitment of people working and volunteering in charities, community groups and social enterprises, all championing good causes, providing vital support and making our communities better places to live.

“Every community, and every part of our society, benefits from the work that SCVO is lucky to see on a daily basis. Thank you to everyone who participated in the Scottish Charity Awards this year, including our sponsors, the Sheraton Hotel for hosting us and of course to Sally Magnusson who was lovely as ever.

“Congratulations to all the finalists – I’m already looking forward to what the next year brings!

Modernising OSCR: Scottish Government publishes Charities Bill

Improvements and updates to increase transparency and accountability

Legislation to update and strengthen existing charity law has been published. The Charities (Regulation and Administration) Bill aims to increase transparency and accountability and improves the powers of the Office of Scottish Charity Regulator (OSCR).

As part of the proposals OSCR will:

  • publish annual accounts for every charity
  • include the names of all charity trustees in the Scottish Charity Register
  • be able to remove charities that fail to provide accounts and don’t respond to OSCR’s communications
  • create a publicly searchable record of removed charity trustees

The legislation will also give OSCR new powers to issue positive directions to a charity to take action, such as managing a conflict of interest, where a risk has been identified by the regulator.

Social Justice Secretary Shona Robison said: “Charities play a vital role in our society, from supporting individuals and communities, to informing policy at a national level.

“Current charity law is now 17 years old, the charity sector has changed significantly in that time and the legislation needs to be updated to reflect that. Charities have told us that they want these changes to help strengthen existing charity law and update their system of regulation.

“In order to maintain public trust and confidence in this important sector and its regulator in the years ahead, we are taking the required steps to increase transparency and to extend OSCR’s enforcement powers.

“Scotland’s charities raise more than £13 billion of income each year and this Bill will give the public further transparency as to how that money is used.”

Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “I welcome the introduction of this legislation. Charity regulation is vital to public trust and confidence in the sector, and it needs to be fit for purpose.

“This Bill is an opportunity to modernise regulation and ensure that OSCR has the powers it needs to fulfil its functions as effectively as possible. I also welcome the Scottish Government’s commitment to a wider review of charity law in the future.”

The Charities (Regulation and Administration) (Scotland) Bill is a 2022-23 Programme for Government commitment.

Provisions in the Bill include:

  • updating the criteria for the automatic disqualification of charity trustees and extending it to individuals with specific senior management positions in charities
  • removal from the Scottish Charity Register of unresponsive charities that fail to submit statements of account
  • a requirement for all charities in the Scottish Charity Register to have and retain a connection to Scotland
  • a requirement on OSCR to publish the statements of account for all charities in the Scottish Charity Register
  • requirements on OSCR to include charity trustee names in the Scottish Charity Register, to keep an internal schedule of charity trustees’ details and to create a publicly searchable record of charity trustees removed by the courts

The Scottish Government consulted on proposals put forward by OSCR in 2019 and consulted again on a number of specific reforms in 2021 and found a majority of support for the changes.

Scottish charity law: consultation analysis 2019

Strengthening Scottish charity law: analysis of engagement responses 2021

Forth and Inverleith Voluntary Sector Forum meets today

Forth and Inverleith Voluntary Sector Forum will meet meet online today Wednesday 30th March – at 1.30pm.

Draft notes from the last meeting are attached.

For meeting login details please contact EVOC Community Planning Development Worker Kate Barrett on 0131 555 9100 or email kate.barrett@evoc.org.uk

EVOC: Conversations & Communities

EVOC & EHSCP invite you to a shared learning and networking event focused on building partnerships and networks in Edinburgh’s NW Locality.

Hosted by EVOC and the Edinburgh Health and Social Care Partnership, this is one of four locality-based events focusing on how we can develop relationships and referral networks to improve support for clients – particularly those who might benefit by engaging with local organisations to explore preventative and early intervention ‘Conversation 1’ type activities.

NORTH WEST LOCALITY EVENT OVERVIEW

Dr Linda Irvine-Fitzpatrick, EVOC’s Bridie Ashrowan and the NW Locality Manager will discuss the interconnections and learning from the Three Conversations Model, The Edinburgh Wellbeing Pact and work within communities.

Here’s some of that wonderful feedback we received last year:

So much out there – great to come up to date with the resources and look at the potential supports.”

I found this simply wonderful!”

Make sure to join us on MS Teams: https://bit.ly/3L8fLkm