SCVO comment on the Scottish Third Sector Tracker Pulse 1

SCVO has today published the first of its new Pulse reports as part of the Scottish Third Sector Tracker project.

Pulse 1 consisted of 12 organisations from the Scottish Third Sector Tracker divided in two focus groups. Group 1’s themes were funding and relationships with funders, and Group 2’s themes were funding, the Scottish election and changing socio-political environment.

Across both reports emerges a clear picture of a sector under growing and ongoing pressure. Funding challenges, such as short‑term and competitive funding, are made worse by a difficult wider environment.

The first report shows that the funding system is unstable, competitive, and overly bureaucratic, and does not always match what communities need. This makes it harder for organisations to plan ahead and remain sustainable. The second report shows how these challenges are made worse by uncertainty around elections, a more difficult social and political climate, and rising demand for services.

Together, the findings show a cycle where short‑term funding and weak relationships with public affect organisations that play a vital frontline role.

Commenting, SCVO Chief Executive Anna Fowlie said:

“We might be into a new parliamentary term, but the exceptionally challenging operating environment facing the voluntary sector remains the same.

These findings underline what the Scottish Third Sector Tracker has long shown. Voluntary organisations face a funding system that isn’t fit for purpose and partnerships with the public sector that are too often weak. This comes against a backdrop of financial insecurity and rising demand, creating significant pressure on the voluntary sector workforce.

Taking action to address these deep‑seated issues is long overdue. The new Scottish Government must now deliver a stronger, more sustainable and empowered voluntary sector. As a starting point, that must include delivering Fair Funding and creating a new model of partnership with the sector — one that is set in law, grounded in trust, with shared decision‑making at its core.

“Without change, the risk is clear: the voluntary organisations communities across Scotland rely on — and that government itself depends on — will be pushed beyond breaking point.”

ENDS

Notes:

Full details of the Scottish Third Sector Tracker Pulse 1 (Spring 2026) reports can be found here: https://scvo.scot/research/scottish-third-sector-tracker/pulses/pulse-1-spring-2026

Anna Fowlie has written to the First Minister, calling for urgent action on the priorities set out in Scotland’s Essential Sector, SCVO’s 2026 Scottish Parliament manifesto. These include:

• Delivering fair funding – reforming public sector funding to be multi-year, flexible, sustainable, and accessible.
• Creating a partnership of equals – establishing a formal, long-term partnership between government and the sector.
• Commissioning with communities – embedding ethical commissioning and ending default to commercial procurement.
• Modernising regulation – launching a comprehensive, independent review of charity regulation.
• Securing the future of volunteering – reversing the long-term decline in participation through targeted action.
• Protecting the sector’s voice – introducing anti-SLAPP legislation and safeguarding public interest advocacy.