Growth overshadowed by charity funding cuts, rising demand & short-termism

• 41% of charities and third sector organisations grew in size in 2013 despite the difficult economic environment – an improvement on 2012 when just 31% of organisations increased in size
• Over three quarters (77%) of charities and third sector organisations expect demand to increase in 2014
• 60% expect costs to rise but the majority do not expect income, numbers of staff or pay to increase
• 38% say they cannot confidently plan ahead due to their current funding arrangements and just 8% say that they can plan ahead more than three years

New figures released today (Wednesday 11 December) by the Scottish Council for Voluntary Organisations (SCVO) show that 77% of charities in Scotland expect demand to increase in 2014 and that more third sector organisations grew in size over the last year compared to 2012. However, funding arrangements are still creating uncertainty for charities and third sector organisations. Martin Sime, Chief Executive, SCVO said: “We are seeing a strengthening of the third sector in the face of a very challenging economic environment. More third organisations are hoping to develop new services and extend current projects but this is being jeopardised by rising demand and funding shortages, with a lack of long term funding for charities further aggravating the situation. “Charities are showing great resilience and the ability to innovate and adapt quickly to meet challenges. “The sector can make an even bigger difference to people’s lives if we take a more strategic and longer term approach to funding, so that charities can plan ahead and tackle generational issues around poverty and inequality. This means charities can make a real difference to the lives of even more vulnerable people and communities across Scotland.” ENDS