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voluntary organisations, social enterprises and volunteering
voluntary organisations, social enterprises and volunteering
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Third sector funding principles report
Created: 18/11/2024
News/Events Category: General News
This item will show under the following categories: Funding and Finance
In its pre-budget scrutiny report, published on 13 November 2024, the Social Justice and Social Security Committee offers suggestions for addressing the funding challenges faced by the third sector.
The Committee wanted to examine the action being taken to support the third sector after hearing continued concerns about funding challenges faced by the sector.
A significant amount of the third sector’s funding comes from public sector contracts and grants. Contracts and grants from the Scottish Government and local authorities, also known as 'statutory funders', make up the two largest incomes sources for the sector.
Increasing demand and wider economic issues have posed significant challenges for Scotland’s third sector:
- The COVID-19 pandemic led to greater demand for third sector services and support
- The impact of the cost of living crisis on household budgets has led to individuals and families seeking help when they did not need it before
- Third sector organisations are spending more on their running costs as inflation has seen prices rise
This report looks at these issues with a focus on how the Scottish Government’s approach to fair and efficient funding can contribute to the continued effectiveness of the third sector.
Highlights from the report include:
- The arguments for and against multi-year funding
- Flexible funding and core funding
- Real Living Wage
- Inflation
- Parity between the third sector and public sector
- Inefficiencies in funding processes
- Delays in funding
- Disclosure Scotland fees
Click here to read the full report.
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