Fife Council recurring grants: changes to reporting and funding arrangements

Fife Council is introducing changes to the way it manages recurring grants to voluntary organisations, following a review involving elected members, Council officers and Fife Voluntary Action (FVA).

The changes, reported to Fife Council's Cabinet Committee on 08 October 2026, are intended to strengthen accountability, improve transparency and help elected members better understand the contribution voluntary organisations make across Fife.

FVA has been closely involved throughout this work, engaging directly with elected members and Council officers to help shape a practical approach that balances the need for appropriate scrutiny of public funding with the importance of maintaining positive, trusting relationships with the voluntary sector.

Why are changes being made?

Fife Council invests significant public funding in voluntary organisations delivering services and activities that benefit communities across Fife.

During 2025, an Elected Members Working Group was established to look more closely at how recurring grants are awarded, monitored and evaluated. Its work focused on fairness, transparency, governance and ensuring that funding supports agreed priorities.

Elected members understandably want confidence that grants represent a good investment of taxpayers' money, that organisations are delivering positive outcomes and that funding decisions can be properly scrutinised.

Equally, voluntary organisations need funding arrangements that are fair, proportionate and supportive, allowing them to focus their resources on delivering services rather than unnecessary administration.

These considerations have been central to FVA's involvement in the discussions.

What is changing?

A new annual report for organisations receiving over £10,000

From 2027, voluntary organisations receiving more than £10,000 per year in recurring grant funding will be asked to complete a short additional annual report.

The report will provide elected members with a consistent summary of each organisation's funding, financial position, governance, performance and achievements.

Importantly, organisations should not need to produce lots of new information to complete it.

The template, developed with significant input from FVA and reviewed by the Voluntary Sector Task Group, draws together information that organisations already prepare for other purposes.

This includes information from:

• Annual accounts and financial reporting;

• Returns and information provided to OSCR;

• Existing Fife Council grant monitoring;

• Performance information, annual reports and impact reporting; and

• Routine information about governance, staffing and volunteering.

For most organisations, completing the form should therefore be largely an exercise in bringing together and copying information that already exists, rather than undertaking substantial additional reporting.

The form also provides space for organisations to highlight their achievements, demonstrate the difference their work makes, explain challenges and outline future priorities.

The report is additional to existing grant monitoring arrangements, rather than replacing them. Completed reports will be made available to elected members through the Council's information hub.

Wider access to recurring grant opportunities

Another important change is that future recurring grant funding opportunities will be communicated more widely through FVA.

This is intended to make the process more visible and accessible to organisations that do not currently receive recurring Council funding.

An additional expression-of-interest application process had been considered, but a simpler approach has been adopted instead.

Existing grant recipients will continue to be invited to apply through the established process and should discuss applications with their Council Link Officer. Organisations seeking funding for the first time should contact the Council's Community Investment Team.

Wider advertising does not necessarily mean additional funding will be available. Applications will still be considered against Council priorities and available resources.

Improved information and monitoring

The Council is also strengthening how it gathers and presents information about its investment in the voluntary sector.

This includes:

• Continuing annual monitoring and three-year evaluations, with evaluations undertaken independently of an organisation's regular Link Officer;

• Providing elected members with clearer summaries of organisational performance;

• Developing a dashboard showing recurring grant expenditure across Fife, expected to be completed by the end of January 2027; and

• Progressing work on a grants management system to improve the consistency and accessibility of funding information.

These developments should help provide a clearer picture of the Council's investment in voluntary organisations and the outcomes being achieved.

FVA's involvement: getting the balance right

FVA has been actively engaged in this work, representing the interests of voluntary organisations and working constructively with elected members and Council officers.

We recognise the importance of good governance, openness and being able to demonstrate the value of public investment. Voluntary organisations make an enormous contribution to communities across Fife, and there is much to be gained from ensuring that contribution is properly understood and recognised.

However, we also know that organisations are frustrated by the amount of administration associated with different funding arrangements.

Nobody particularly welcomes another form, and we would not pretend that an additional reporting requirement is something organisations have been asking for.

Throughout the discussions, FVA has emphasised the need to avoid disproportionate reporting requirements and unnecessary duplication. The proposals being explored could have resulted in considerably more demanding arrangements.

The approach now being introduced is more straightforward than some of the alternatives considered, with the annual report principally bringing together information that organisations already hold.

We believe this represents a reasonable and proportionate way of responding to elected members' requests for greater scrutiny, while recognising the limited time and resources available to voluntary organisations.

Ultimately, accountability should be about demonstrating the difference organisations make to people's lives and communities, not simply about producing more paperwork.

Fair Funding remains important

The changes are being developed within the context of the Fair Funding Principles adopted by the Fife Partnership wherever possible.

These include commitments to:

• Positive working relationships based on mutual trust and respect;

• Multi-year funding wherever possible;

• Reporting and monitoring arrangements that are proportionate and avoid unnecessary bureaucracy;

• Early consultation and collaboration with the voluntary sector;

• Greater flexibility and recognition of organisations' operating costs; and

• Fair, respectful processes when funding comes to an end.

FVA will continue to promote these principles, particularly at a time when organisations are experiencing significant financial pressures and increasing demand for their services.

What happens next?

The Council's current recurring grant application and evaluation process is underway, with funding recommendations expected to go to Cabinet Committee in March 2027.

Organisations already receiving recurring grants will be contacted through the usual arrangements.

Those affected by the new annual reporting requirement will receive further information, including the template and arrangements for its completion.

A fuller review of Communities and Neighbourhoods recurring grants is planned during 2027, with any agreed further changes expected to be implemented from 2028 onwards.

FVA will remain involved in this work and will continue to represent the sector's interests.

Our priority is to ensure that funding arrangements support strong, sustainable voluntary organisations, recognise the value they deliver and strengthen the partnership between the Council and Fife's third sector.

Further information

The following Council documents provide more detail:

• Cabinet Committee – 08 October 2026 – Agenda Item 9, Support for Voluntary Organisations Update, including the annual report template in Appendix 1.

• Cabinet Committee – 05 March 2026 – Earlier report on recurring grants and scrutiny arrangements.

• Fife Council Monitoring and Evaluation Framework.

Organisations with questions about their existing recurring grants should contact their Council Link Officer. New funding enquiries can be directed to [email protected].  Remember, our capacity building team is here to help with compliance, funding and reporting assistance: [email protected]

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