Just before the end of 2023 the Gurn received two press releases from the SCVO, (Scottish Council for Voluntary Organisations). Many readers will know just how much charity and voluntary group work makes up part of the fabric of life in Nairn, and may wish to read the following:
"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.
Charities face staff and volunteer crisis
A third of organisations reported this as one of their top challenges.
Third Sector organisations in Scotland are increasingly facing shortages of staff and volunteers, a new report has warned.
The Scottish Third Sector Tracker has found that issues relating to staffing and volunteers are one of the top challenges for a third of voluntary sector organisations.
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.
In August 2021, 35% of organisations reported a significant concern about staff and volunteer numbers. Just two years on, that figure has now risen to 65%, with only finances currently proving a bigger challenge for the sector.
While staff and volunteer support remain a growing concern, third sector groups report an ongoing increase in demand for their core services and activities over the six waves of the tracker. In Wave 1 (Aug 2021), 56% of organisations reported an increased demand, rising to 63% by Wave 6 (Apr 2023).
These factors, on top of growing financial pressures due to the rising costs crisis and public sector funding cuts, are leading to a perfect storm for charities and voluntary groups, with strain put on already stretched teams.
Anna Fowlie, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO), said: “The Scottish voluntary sector is a significant employer, providing jobs for 5% of the Scottish workforce. At a time where many organisations are facing recruitment challenges, the funding environment means that many voluntary organisations are struggling to keep pace with salary increases needed to attract and retain staff.
“Existing staff and volunteers have been working flat out since Covid, helping organisations and communities to weather the cost-of-living crisis. We can no longer afford to rely on their goodwill to go the extra mile. The invaluable services and supports provided by Scotland’s voluntary sector need sustainable investment to ensure their survival.”
Volunteer Scotland are also concerned by the staff and volunteer crisis facing the sector, highlighted by the Third Sector Tracker. The recent release of the 2022 Scottish Household survey results reinforces the volunteer crisis, with formal volunteer participation rates falling by 4 percentage points since 2019 to 22% - this equates to less than one million Scottish adults volunteering.
In light of the current crisis, the actions that can be undertaken by volunteer involving organisations include ensuring that volunteer expense policies are clear and considering how roles can be made more flexible to fit with the decreased time volunteers have available.
Alan Stevenson, CEO of Volunteer Scotland said: “The many impacts of the cost-of-living crisis on volunteering has meant that we can no longer take for granted the contribution of our volunteers. While recruitment and retention issues are being felt more acutely by some, the first step for all must be the focus on good volunteering practice, appropriately supported.”
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."
