Report identifies potential extra £300m a year for charities in Scotland

27 Apr 2023 News

A new report has said that charities in Scotland could receive an extra £300m a year if donors matched the generosity of other countries.

The report from the Law Family Commission on Civil Society (LFCCS) said that if the Scottish public gave a similar share of their wealth to charity as the public in New Zealand or Canada, it would provide another £300m a year for charities in the country.

Meanwhile, in another report, LFCCS said that if the Northern Irish public gave a similar share of their wealth to charity as the public in New Zealand or Canada, it would provide another £31m a year for charities there.

Sector ‘faces real challenges’ in meeting demands

The report focused on Scotland said that economic growth and social progress in Scotland is dependent on the public, private and social sectors “firing on all cylinders and working effectively together”.

It recommended a “radical shift” in approach from funders away from short-term and restrictive funding and towards support for core costs and investment in people, processes and organisational development.  

Gus O’Donnell, LFCCS chair, said: “Charities are a key part of the solution to every challenge faced in Scotland and across the rest of the UK.”
 
He added the cost-of-living crisis and the pandemic have shown the crucial role of charities and noted the sector has grown to employ around 135,000 people in Scotland, “but it faces real challenges in meeting the demands that are now placed upon it”.

“There are fewer people giving regularly to charity, including the growing pool of highest earners who are earning more but giving less. Formal volunteering has stagnated,” O’Donnell said.

“And the way that the funding system for charities works has left holes in charitable provision in some of the places that need it most, as well as disincentivising investment in skills, digital and the infrastructure that allows charities to have the greatest possible impact with the limited resources that they possess.”
 
He called for a “dramatic acceleration” in the partnership between civil society and business and a reset of the relationship between civil society and government. 

Northern Ireland 

LFCCS’ final report focused on Northern Ireland called for bold action on the sector by Northern Irish government, businesses and funders to help fuel much-needed national recovery and growth.

In this report, LFCCS also concluded that there was room to significantly boost giving in Northern Ireland. 

It said that if the Northern Irish public gave a similar share of their wealth to charity as the public in New Zealand or Canada, it would provide another £31m a year for charities.
 
“It is clear that civil society is integral to achieving both economic and social progress, and it already makes enormous contributions to both. But it is also evident that it could achieve even more,” it said.

O’Donnell said the sector has grown to employ almost 54,000 people in Northern Ireland, but also it faces real challenges in meeting the demands that are now placed upon it. 

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