Scottish charities are taking a proactive approach to the challenges of today, with almost half focusing on business development in the next year and one-fifth planning a restructure.
The figures arise in the Scottish Council for Voluntary Organisations' (SCVO) annual State of the Sector report which records the trends and expectations of the charity sector, and received 403 civil society responses.
The survey reveals that charities are planning major changes in the coming year, but while just 2 per cent of charities plan to wind up or close down in the next year, 21 per cent plan to restructure and 45 per cent will focus on business development.
Although around half expect paid staff numbers, staff hours and volunteer numbers to remain the same, 20 per cent of charities expect staff hours to increase, while 18 per cent expect paid staff numbers to decrease and 35 per cent expect to increase volunteer numbers.
The majority of charities (65 per cent) plan to collaborate more with other organisations, although just 4 per cent plan to merge with another body.
These plans respond to expectations from the majority (75 per cent) of Scottish charities that demand on their services will increase. Some 59 per cent of charities also expect their expenditure to increase in the next 12 months, an increase of 26 per cent on last year.
Financial support not expected to meet demand
However charities believe that financial support will not meet this demand. Circa 75 per cent expect competition for resources to increase, while 81 per cent expect the financial situation to worsen for the Scottish voluntary sector in the next year, a nearly identical figure to last year's prediction.
Charities were overall more positive, however, about their own situation compared to the sector at large, with more expecting their financial situation to remain the same or improve than decline (45, 14 and 42 per cent respectively).
A mixed picture was also presented in relation to reserves, with 39 per cent planning to dip into reserves, while 21 per cent planned to increase them.
SCVO's chief executive, Martin Sime (pictured), said that charities in Scotland are facing "criminal cuts from Westminster". With 80 per cent of welfare cuts still to come 63 per cent of charities said they would be affected. “The sector is pulling together to pick up the pieces and help to mitigate the terrible effects of these ill-conceived Westminster cuts which should never have happened in the first place,” he said.
Welfare reform from the UK government is opposed by the Scottish government. Deputy First Minister Nicola Sturgeon is to address an audience of civil society professionals this afternoon in Edinburgh at the Taking on Welfare Reform event organised by the SCVO.
