Survey shows sector under pressure amid costs crisis
/This article was featured in the SCDC Weekly - 28th August 2024.
The Scottish Third Sector Tracker has outlined some of the challenges community organisations and others are facing as resources become scarcer and costs continue to rise.
Carried out by SCVO, the survey of almost 400 organisations (including SCDC) found that rising costs and inflation continue to present significant challenges, along with volunteer shortages, difficulties in fundraising and cash flow, and overall uncertainty about the future.
Six in ten organisations felt the resulting pressure to replace key grant funding by use of their cash reserves was unsustainable, up from four in ten just six months earlier, and the number of organisations making redundancies has doubled, from 5% to 10% in the same period.
Other issues raised include the inability to meet the demand for services, staff recruitment and retention, and issues around grant making. These issues mirror some of the findings published in a recent CHEX report, and we will be watching with interest how the results of the parliamentary committee call for views around third sector funding could facilitate positive solutions.
For many, it will feel like the sector is facing a critical moment. Organisations are using their knowledge and expertise about their communities to support some of the most vulnerable in our society. Securing sustainability for this work is crucial, because without it the negative effects on people’s quality of life, and ultimately increased pressure on public sector budgets as a result, are significant.
With this increased demand and reduced resources, it will be crucial that the forthcoming Programme for Government and Scottish budget recognises the precarious state the sector is in, and offers clear solutions for the better.
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