Share

Small and medium-sized charities 'under threat' in Scotland, warns SCVO

Small and medium-sized charities 'under threat' in Scotland, warns SCVO
News

Small and medium-sized charities 'under threat' in Scotland, warns SCVO

Finance | Jonathan Last | 12 Sep 2012

The Scottish Council for Voluntary Organisations has today released figures that it says indicate reserves are running out for the country’s small and medium-sized charities.

Scotland’s smaller charities are the ones most affected by funding cuts, according to SCVO, and are suffering from spending more than they have coming in. While larger charities and housing associations saw modest income growth in 2011, other charities’ turnover has been falling since 2009.

The umbrella body for voluntary organisations in Scotland has published SCVO Scottish Third Sector Statistics 2012. It presents a statistical overview of the sector’s income and expenditure broken down into categories such as annual turnover, staff costs and assets, as well as drawing some more general insights.  

More employed, but hours cut

According to the document the voluntary sector is employing more people, but on less hours. Rather than cutting jobs, the sector is reducing hours for staff. Staff numbers have increased to 138,000, but of that only 83,350 are employed full-time.

Assets and reserves have in fact increased slightly to £9bn. But SCVO is concerned that the growth in assets held by large charities and housing associations is masking the struggles of the smaller organisations, and covering up a much more dire picture.

The sector’s income was £4.5bn in 2011 – modest growth compared to £4.4bn in 2010, says SCVO. With the exception of credit unions and housing associations, charities’ turnover was down to £3.21bn in 2011 compared to its 2009 high of £3.33bn.

The report focuses on data from Scotland’s 19,483 regulated charitable organisations. There are an estimated 45,000 in total in the country; these results do not include charities that operate across the whole of the UK.

It is available on the Scottish Council for Voluntary Organisations' website.

‘Something will have to give’

Martin Sime, SCVO chief executive, said that charities were running out of ways to compensate for the funding drain, with many having dipped into already-limited reserves last year.

“As income falls short of expenditure, particularly for smaller charities, organisations are being forced to use what assets and reserves they have to keep their doors open for as long as possible,” said Sime.

“Organisations are working hard to maintain the high quality services they provide to communities across Scotland and keep their staff. With ever-growing demand set to skyrocket as the UK welfare cuts kick in, organisations are facing an impossible conundrum.

"Something will have to give to secure a sustainable future for the sector.”

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Tags

Free eNews

Virgin Money Giving help raised £88.3m for charity in 2014

6 Mar 2015

Fundraisers using Virgin Money Giving, the not-for-profit online fundraising website of Virgin Money,...

NCVO opposes IoF call to increase the maximum size of society lotteries

5 Mar 2015

NCVO has said that there is not enough evidence available to agree with the Institute of Fundraising’s...

Calls for OSCR investigation into Kiltwalk running costs

5 Mar 2015

The Office of the Scottish Charity Regulator should open an investigation into Scottish fundraising event...

OSCR opens consultation on new charity guidance

6 Mar 2015

The Scottish charity regulator has announced a full revision of its guidance for Scottish voluntary organisations...

'Genuine risk' of terrorism in charities but problem overstated, says report

5 Mar 2015

There is a "genuine risk" of charities being used for terrorist purposes, but that risk has been exaggerated...

Eleven per cent of Charity Commission inquiries are opened into religious charities

5 Mar 2015

Twenty-three of the 201 statutory inquiries opened into charities in the year to March 2014 focused on...

Daniel Phelan dies, aged 58

13 Feb 2015

Daniel Phelan, owner and editor-in-chief of Civil Society Media, passed away on Wednesday following a...

LinkedIn launches matching service to bring charity volunteering opportunities to 250,000 members

6 Feb 2015

Charities in the UK will be able to advertise volunteer opportunities to 250,000 LinkedIn members who...

Free guide to Bitcoin donations produced for charities

5 Feb 2015

Two Bitcoin organisations have launched a website and free guide to promote the use of the digital currency...

Join the discussion

 Twitter button

@CSFinance