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Supporting Scotland's vibrant voluntary sector

Scottish Council for Voluntary Organisations

The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises. Charity registered in Scotland SC003558. Registered office Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh EH3 6BB.

SCVO response to the Social Justice & Social Security Committee: Charities (Regulation & Administration) (Scotland) Bill

About our response

SCVO welcomes the opportunity to respond to the Social Justice and Social Security Committee’s consultation on the Scottish Government’s Charities (Regulation and Administration) (Scotland) Bill. Our submission focuses on the Bill itself – its contents and potential impact - as well as seeking to answer the specific questions laid out in the committee’s call for views. We draw on evidence from:

  • Responses analysed and published as part of the Scottish Government’s original consultation process in 2019.
  • Responses and contributions published following the Scottish Government’s follow-up engagement processes between 2020 and 2021.
  • Contributions collected during roundtable discussions hosted by the Scottish Council for Voluntary Organisations (SCVO) and Association of Chief Officers of Scottish Voluntary Organisations (ACOSVO) as part of the above follow-up engagement.
  • SCVO’s own engagement on the Charities (Regulation and Administration) (Scotland) Bill conducted in January 2023 via an online survey and meetings with voluntary organisations.
  • External reaction to the Charities Bill from voluntary organisations and organisations concerned with charity law.

Summary of our response

The Scottish voluntary sector is an employer, a partner, and a vital social and economic actor. Our sector manages an annual income of over £8.5 billion, employs over 135,000 paid staff, and works with more than 1.2 million volunteers to support communities across Scotland.

Voluntary organisations are crucial to Scottish society. This has never been more evident than over the course of the last few years but we cannot forget that, long before the pandemic and the cost-of-living crisis, charities have been relied upon on a daily basis by individuals, families, and communities across Scotland, and this will continue to be the case in the future.

Despite this, ours is a sector that is consistently facing uncertainty and insecurity in a multitude of areas, including within a largely out-of-date regulatory landscape which governs how charities operate. With the Charities and Trustee Investment (Scotland) Act 2005 having been in place now for almost two decades, the need for modernisation and improvement has been a long-time coming. It is because of this that SCVO, and we believe the majority of the sector, broadly supports the proposals contained within the Bill.

However, we do wish to use our response to highlight the issues that still remain, particularly around a lack of detail and clarity, and specific concerns relating to new powers and disqualification criteria. We would also note that particular proposals have been added to the Bill without proper consultation, which, when considered alongside the approach to the original proposals developed by OSCR without input from charities, suggests that this extensive process has been something of a missed opportunity. Alternatively, charities could have been involved in the development of proposals from the beginning, ensuring that more effective additional changes could have been included in the resulting Bill.

We also have concerns over the level of responsibility that now falls upon the regulator to ensure that charities across Scotland are fully aware of the changes in this Bill and the expectations these changes will place upon them. It is crucial that, should this Bill pass into legislation, OSCR undertakes efficient and thorough engagement and communication with Scotland’s charities, providing greater clarity and guidance in the many areas identified throughout our response, and ensuring guidance and support where necessary. This could be particularly important in relation to certain proposals, for example those that strengthen the regulator’s new powers, to ensure that charities can feel assured, confident, and informed going forward.

In addition to the above, we also believe the committee, the Scottish Government, and OSCR should recognise the following points in relation to the Bill:

  • Given the requirement for OSCR to adequately communicate and engage with charities across Scotland on the full package of new regulatory measures, the costing of this should be realistic and must not come at the expense of funding available to voluntary organisations.
  • There is a burden of responsibility on OSCR to use its dispensation and disqualification waiver mechanisms adequately, ensuring that charities’ interests are fully considered, and to adapt guidance and procedures swiftly where required.
  • Consideration should be given to the link between the lived experience of individuals, whose experience may be of benefit to a charity, and a higher risk of financial difficulties, including bankruptcy.
  • Further consideration should be given to ensuring accountability and safeguarding in relation to the regulator’s increased powers.
  • The Scottish Government’s commitment to a wider review of charity regulation must be a properly resourced, comprehensive review that includes adequate involvement of Scotland’s voluntary sector.

Our response

Engagement process

SCVO recognises that there has been an extensive consultation and engagement process undertaken by the Scottish Government since 2019. Our organisation has participated throughout and therefore we do have reflections to share on this process.

It is firstly important to acknowledge that the proposals included in this Bill were originally developed and put forward by OSCR. It should be noted that the voluntary sector was not involved in the development of these original proposals and, as a result, was only consulted on specific changes favoured by the regulator. The initial consultation process also lacked a great deal of detail around these proposals and how they would be implemented, leaving many charities unable to provide adequate input without the necessary information and clarity.

Furthermore, we feel it should be noted that two proposals now contained within the Bill – in relation to charity mergers and legacy transfers, and the appointing of interim charity trustees – were not consulted on. As stated by the Bill’s Policy Memorandum, the former change was a suggestion made by OSCR in the regulator’s own consultation response in 2019. Similarly, the proposal around charity mergers and transfer of legacies has been included after the suggestion was made in a response by the Law Society of Scotland. As previously highlighted, charities were not involved in developing the original proposals to be consulted on and, had they been, perhaps further beneficial changes, like those that have subsequently been included in the Bill, could have been considered from the beginning.

However, we note that the engagement undertaken following 2019’s original consultation was to a more efficient level. The follow-up process in 2020, leading into 2021, to further develop and refine proposals, utilised a more suitable array of engagement opportunities, including roundtable discussions hosted by SCVO and the Association of Chief Officers of Scottish Voluntary Organisations (ACOSVO). These sessions were successful in better providing the opportunities necessary for charities to engage more effectively with the proposals put forward. Despite this, the view was raised, during our own recent engagement on this Bill, that the passage of time since previous engagement from the Scottish Government had been lengthy enough to justify “some significant re-promotion” which was deemed to be lacking.

In recent months, SCVO has also welcomed the Scottish Government’s steps to engage with our organisation on a number of occasions regarding this Bill, including meetings with both the Cabinet Secretary for Social Justice, Housing and Local Government and with the Third Sector Unit.

The voluntary sector since 2005

The conditions in which voluntary sector organisations work have changed massively since 2005. We consider the pandemic and the cost-of-living crisis as being recent issues that have been hugely impactful, negatively affecting every aspect of our society and our lives, with the voluntary sector being no different in that regard. However, the pandemic and the cost-of-living crisis are simply the latest chapters in a far longer story of instability and unpredictability. Years of upheaval since 2008 have destabilised the voluntary sector’s operating environment and everything suggests this will persist.

Over the years, charities have had to deal with changes and cuts to funding, growing media profiles that have occasionally led to issues around public trust, and the growth of non-voluntary sector bodies engaged in work in similar areas of social or environmental responsibility, leading to increased competition for resources. And over the last three years, charities have faced the seismic impacts of crisis after crisis. As a result, SCVO’s Third Sector Tracker has also shown that the voluntary sector as a whole is faced with many issues, including the following:

  • Two-thirds of voluntary organisations (64%) have seen demand for their support increase between August and April, with a quarter seeing significant increases.
  • 72% of voluntary organisations are struggling with staffing issues and shortages.
  • Between July and August 2022, 93% of organisations reported rising costs – common price rises reported included:
    • Material and supplies (76%)
    • Transport costs (61%)
    • Energy costs (50%)
    • Staffing costs (43%)

In response to these issues, the pandemic, and the cost-of-living crisis more generally, charities across Scotland have adopted innovative delivery models, approaches to engaging with those they support, and ways in which to generate income. Since March 2020, the ability for charities to respond quickly and efficiently to crises has been crucial but so too has been the ability to change and evolve rapidly, resulting in a sector that has changed greatly in just the last three years, let alone since 2005.

Voluntary organisations are of huge importance, built into the fabric of our society - both relied upon day after day and continuously at the forefront of supporting our communities through crises. But, for a sector already dealing with barriers and anxieties, stability and modernisation are urgently required – including across the regulatory landscape in which charities operate. It is for this reason that SCVO not only broadly supports the Charities (Regulation and Administration) (Scotland) Bill but also the Scottish Government’s commitment to a wider review of charity regulation.

The need for a wider review

When the Scottish Government first launched the original consultation on these changes, many across the sector – including SCVO – were somewhat underwhelmed after hoping for wider reform. It was felt that the proposals, although undoubtedly covering areas of importance, had simply not gone far enough. The proposals included in this Bill are designed to improve very specific aspects of regulation that is of relevance to the regulator itself and, although generally supported, are not necessarily driven by an understanding of what it means to be a modern charity almost two decades since the original legislation was introduced. Indeed, as mentioned above, the original proposals were not developed with any input from the voluntary sector in Scotland and, instead, were simply the proposals desired by the regulator. It is therefore no surprise that the needs of charities themselves are far from being met by this Bill alone.

The external pressures on the voluntary sector require far more than a select few improvements to a handful of regulatory aspects. Instead, it is important we ask how legislation and other forms of non-legislative regulatory interventions can support charities to thrive amongst the magnitude of oncoming change. The voluntary sector is not only regulated by the 2005 Act. Instead, the sector is regulated by a variety of different regulators, duties, and obligations and therefore there must be a holistic approach to regulating the voluntary sector in a way that supports the role of charities two decades on from the inception of the 2005 Act.

SCVO is consistently engaged with the regulatory frameworks that regulate charities in Scotland. For example, we are currently also engaging with proposals to update freedom of information legislation that will have a direct impact on the voluntary sector. This ongoing piecemeal approach to the regulatory landscape will result in gaps and overlaps in accountability. Regulatory regimes should support organisations to work in a joined-up approach as there remains a risk that layers of regulation are added without consideration being given to the wider picture.

SCVO knows that there is support across the voluntary sector for an independent review of the regulatory landscape that underpins the environment our charities operate within. The Scottish Government cannot afford to kick this recent commitment down the road or conduct a review that avoids the vital improvements required to ensure suitable, modern charity regulation in Scotland.

It will only be by working together – the voluntary sector, regulators, and the Scottish Government – that it might be possible to review and improve policy, and legislative and regulatory frameworks, for charities in Scotland, so that these meet regulatory objectives in an efficient and effective way, ensuring that regulations are responsive to what it means to be a charity in 2023 and the decade to come. Only by resourcing a comprehensive review, including the adequate involvement of charities, will the Scottish Government get it right. Charities must be an integral part of every step of this review, from designing its processes and shaping its scope, to finalising its conclusions and implementing its subsequent recommendations.

Furthermore, responses to the committee’s call for views on this particular Bill should not be used in place of bespoke engagement by the Scottish Government that allows voluntary organisations to shape the focus of a forthcoming review, which should stretch beyond charity law. As highlighted above in our comments regarding the engagement process to date, it has been expressed to us that the time-period between previous engagement and the introduction of the Bill has been lengthy enough to justify further promotion across the sector, with the view being that this has not occurred. Therefore, it cannot be assumed that respondents to this call for views will be taking a direct opportunity to specifically engage with the Scottish Government’s commitment to a wider review, nor that organisations who do not respond are consciously passing up said opportunity. It is important that the Scottish Government approaches the scope of a wider review properly, avoiding the piecemeal approach that we have seen with additions to this legislation.

Accounts and the Scottish Charity Register

Requirement on OSCR to publish the statements of account for all charities in the Scottish Charity Register

SCVO supports the above proposal. We agree with the assertion that this requirement will lead to increased scrutiny, transparency, accountability, and openness of charities to the public and other interested parties.

The guarantee built into the Bill, ensuring that information that is exempted from being included in the Register on safety grounds will never be included in published statements of account, is vital to ensuring that charities can proceed with a level of confidence and security. The ability for charities to apply for a dispensation from including the names of charity trustees is also a vital inclusion. There will be scenarios in which names must be excluded for security reasons and it is therefore crucial that, in our attempts to increase transparency and accountability within the voluntary sector, we do not inadvertently put charities, or those involved with charities, in difficult or potentially dangerous situations. We believe that the Bill adequately deals with this.

However, there is a burden of responsibility on OSCR and the Scottish Government to act swiftly to adapt guidance and procedures, should there be examples of instances where this Bill has not adequately dealt with this issue, leading to individuals or charities having their security compromised. In addition, it will also be the regulator’s responsibility to ensure that all charities in Scotland are not only aware of these changes but are also fully up to date on the processes and timescales involved, informed on how to apply for a dispensation where necessary, and provided with all other relevant information.

Removal from the Scottish Charity Register of unresponsive charities that fail to submit statements of account

In previous engagement, SCVO has made clear our support for this proposal. However, we did also raise concerns around the lack of clarity regarding this proposal, specifically its original aim to remove those organisations who were deemed to have ‘persistently failed’ to submit statements of account. We are therefore encouraged that the Bill has moved away from this vague objective and has instead focused on charities that both fail to submit statements of account and subsequently do not respond to communication from the regulator. We believe that this will be a clearer and more efficient process than that originally proposed.

Charity trustees

Requirements on OSCR to include charity trustee names in the Scottish Charity Register

SCVO supports the above proposal. We again welcome OSCR’s ability to grant dispensations, either achieved by the charity via the application route or through the regulator acting on its own accord, removing trustee names where it believes there is a risk. The voluntary sector in Scotland is keen to play its part in improving transparency and accountability but this must not come at the expense of ignoring safety issues or placing vulnerable individuals, or charities themselves, at risk.

As OSCR’s own Scottish Charity Survey 2022 has shown, 25% of charities are concerned about the recruitment of trustees, with this being of particular concern to smaller charities. It is therefore vital to guarantee that such dispensation mechanisms are available and used where appropriate to ensure that individuals, who may have experience and skills of great benefit to a charity’s work, are not put off getting involved because of concerns for their own safety. Improvements to the regulator’s ability to regulate effectively should not come at the cost of increased issues with trustee recruitment.

Requirements on OSCR to keep an internal schedule of charity trustees’ details

SCVO supports the above proposal and agrees that this will be vital in providing the regulator with the information needed to carry out its regulatory duties. We welcome the reasoning provided for this section of the Bill and acknowledge the barriers faced by OSCR currently holding limited information on the over 180,000 charity trustees involved in over 25,000 charities in Scotland. We are also encouraged by the commitment within the Policy Memorandum for this reasoning to “continue to be communicated clearly by OSCR in its dealings with charities”. We believe that there remains a lack of clarity around how several of the proposals in this Bill will be specifically implemented and communicated to charities in Scotland, so welcome this particular commitment.

Furthermore, we are supportive of the measures taken in the Bill to ensure that the regulator must “specify the questions about charity trustees it will require answers to for the purpose of populating the schedule, and publicise the questions so specified.” However, we would suggest that OSCR must also specify and publicise the timescales in which organisations will be required to provide answers to these questions, and any other information of relevance to this process.

We are encouraged that there is an understanding that charities will require guidance and communication around this particular area. However, there remains little information on how this will be specifically communicated to charities. As such, despite supporting the requirements in principle, we cannot provide further comment on how efficient or effective we believe this will be.

Requirement for OSCR to create a publicly searchable record of removed charity trustees

SCVO supports this proposal.We acknowledge the original concerns raised by both the wider voluntary sector and ourselves in relation to this proposal in terms of potential impacts relating to data protection and how accessible to the public such a record would be. We welcome the provisions for this section, ensuring that this will not be provided as a document that can simply be browsed, as well as the potential for certain information to be redacted in the interests of privacy. We believe that this is a suitable solution to the concerns originally raised but, as with other proposals, would expect the way in which these concerns have been addressed to be suitably communicated to charities in post-legislation guidance from OSCR.

Updating the criteria for the automatic disqualification of charity trustees and extending it to individuals with senior management positions

SCVO welcomes the detail included in the Bill and its associated documents in relation to this proposal. We believe there was a lack of detail, particularly around the setting of parameters relating to this proposal, in the original consultation process which, in turn, resulted in concerns. It is now our position that the listed offences which could lead to disqualification are understandable additions.

However, this position is only due to the existence of an opportunity for individuals to continue to apply to OSCR for a waiver from disqualification as the law currently allows. As acknowledged in the Policy Memorandum, there are charities who may wish to include ex-offenders as trustees on their boards, particularly where lived experience is deemed valuable and/or where an individual has been rehabilitated into society after a previous conviction. We would expect that such circumstances would be taken into account by OSCR when making a decision on a waiver from disqualification.

SCVO also broadly supports the Bill’s aims to bring the legislation in line with that in England and Wales. However, we do have concerns around section 5 of the Bill, seeking to extend the list of bankruptcy measures which could lead to disqualification. We have concerns that such an approach could prevent individuals from becoming trustees who are from under-represented groups and/or have lived experience of direct benefit to charities. There are those who have experienced difficulties in life, for example with regards to addiction issues, which may have put them more at risk of experiencing financial difficulties and potential bankruptcy. We believe that there is a possibility that this change could create a scenario where charities who work specifically in areas with a direct link to an increased risk of financial difficulties may be unable to appoint valuable, experienced trustees.

We believe that more consideration is required in this area, to ensure that any process for a waiver from disqualification due to bankruptcy directly and fully considers the links between the lived experience of a potential trustee and the increased likelihood of financial difficulties. One early suggestion from the sector is a potential rethinking of the approach that only excludes those who have experienced bankruptcy from charity positions directly linked to financial duties, such as treasurers. However, other solutions to this may also emerge given further consideration, perhaps including specific engagement with organisations operating in associated areas.

The regulator's powers

Providing OSCR with a power to appoint interim trustees

SCVO does not oppose the principle or reasoning behind this proposal. However, we do have concerns around the lack of previous consultation on this and the lack of detail on how any appointment process would be implemented, including what safeguards will be in place to ensure that this power is only used proportionately.

We accept that this power, as stated, “would ensure that [a charity’s] assets continue to be used for charitable purposes either by the charity or another charity to which they are transferred when the charity is wound up”. However, this remains a power that could trigger some anxiety within the sector regarding the perception of a regulator that could overstep its boundaries. There also remains a lack of detail around how this proposal will be implemented that will cause several concerns for charities across Scotland. Therefore, it is vital that further detail and potential safeguards are put in place to ensure confidence.

Given that this has only been included at Bill stage as the result of OSCR’s own response to the consultation process in 2019, it may further increase concerns that this power has not been adequately consulted on. It will therefore require the regulator to ensure adequate engagement with charities to ensure that the reasoning behind this proposal, and how this power will be used, is communicated effectively.

Providing OSCR with a power to issue positive directions

SCVO understands and accepts the reasoning behind the above proposal but our original concerns around a lack of detail, and a need to manage this particular power carefully, still remain.

We recognise that the intention is for the power to be subject to OSCR’s existing duties in terms of acting proportionately and consistently, and we further recognise that, as stated, “the different situations in which a positive direction may be needed cannot be exhaustively defined”. However, charities will still require more detail around what type of positive directions may be issued and in what circumstances, not only to ensure that organisations are clear on expectations, but to avoid concern that the regulator will be able to use this power without clear set limits.

Should this section of the Bill pass into legislation, it will be vital for OSCR to ensure that all charities in Scotland have as much information on this power, and the situations in which it may be reasonably expected to see its use, as possible.

A power for OSCR to conduct inquiries into former charities and their charity trustees

SCVO supports this proposal. We recognise that this section of the Bill provides an appropriate approach which will ensure a greater level of effective regulation and a strengthening of the current legislation, as well as transparency and accountability.

Clarification of existing provision, to improve speed and efficiency regarding OSCR's powers to gather information for inquiries

SCVO supports the above proposal.

Connections to Scotland

A requirement for all charities in the Scottish Charity Register to have and retain a connection to Scotland

SCVO’s position throughout the previous consultation and engagement processes regarding this proposal has been consistently in support of this whilst simultaneously highlighting the need for more clarity around what is meant specifically by ‘connection’. We note that this was a particular concern across the sector where a lack of detail and clarification resulted in several responses to the original consultation raising questions about this lack of a definition.

We are pleased that the Bill has introduced greater clarity by listing specific factors that will be taken into account by the regulator. Furthermore, we recognise that the intention not to preclude the registration of cross-border charities or to exclude charities operating in Scotland for the benefit of those outwith Scotland is achieved by this proposal. We particularly appreciate the more effective framing of this approach, with its focus specifically on “charities which it is not appropriate for OSCR to regulate” rather than a focus on those it is.

Assets to provide public benefit

A requirement for de-registered charities' assets to continue to be used to provide public benefit

SCVO supports this proposal. We recognise that this fixes a technical issue with the 2005 Act and is an important step to correct this original oversight, ensuring that the 2005 Act operates as intended.

Charity mergers and the transfer of legacies

The creation of a record of charity mergers and provision for the transfer of legacies

SCVO supports this proposal. We believe that this will ensure certainty for individuals making wills and lessen the risk of a loss of assets to charities in Scotland. As one respondent stated during SCVO’s survey on this Bill: “it would have the positive impact of making transitions easier, ensuring the legacy continues to benefit the chosen activity”.

We also note that, as stated in the Policy Memorandum, the change “will be accompanied by a communications campaign”. We welcome this commitment but would again highlight that strong, effective communications will be required across all aspects of this Bill. We would also refer to the point made earlier in this response regarding the inclusion of proposals that were not consulted on - this appears to be a positive example of how additional proposals could have been shared, discussed, and developed through early engagement with charities on the specific proposals to be considered, rather than just those proposed by the regulator.

Financial Memorandum and impact assessments

Financial Memorandum

SCVO’s only reflection on this at present is with regards to the costs associated with communications and engagement, stakeholder support and guidance, and casework in relation to the various aspects of this Bill. We believe, as outlined in a number of sections in this response, that there must be a responsibility on OSCR to ensure that charities across Scotland fully understand the impacts of this Bill and the expectations placed upon them as a result and are provided with further clarity and detail in a number of areas. In addition, due to the increase in powers that the regulator will have going forward, we believe that there will be a need to ensure that staff are suitably trained to a satisfactory level.

We would, at this stage, simply highlight that we believe there is a possibility that the need for communication, engagement, guidance, and clarification from OSCR to charities as a result of this Bill may have been underestimated to some extent and therefore the costs detailed in the Financial Memorandum may also have been underestimated. It is also important that the implementation of these proposals and the regulator’s responsibility to provide guidance, clarification, and further information must not impact the funding available to voluntary organisations in Scotland.

Data Protection Impact Assessment

With regards to the above, we are encouraged by its findings given a number of original concerns raised around data protection issues with regards to specific proposals. We believe that the Bill has found solutions to these concerns where required and have no further related issues.

Equalities Impact Assessment

We do wish to draw the committee’s attention to the Equalities Impact Assessment, in particular to the following paragraphs:

“This proposal will extend the criteria that trigger automatic disqualification in Scotland to broadly match the rest of the UK, ensuring there is consistent criteria for the automatic disqualification of trustees across the UK by closing legislative gaps that currently exist in the Scottish legal framework. The second part of this proposal will extend the disqualification criteria to cover those in specific senior management positions within charities, as is currently the case in England and Wales.

We have considered that there is potential for marginalised communities and individuals to be impacted more greatly by this proposal. The inclusion of this change to legislation would mean that an individual who is, for example, an undischarged bankrupt would be disqualified from holding a senior management position within a charity”.

As stated previously, we note that changes to legislation specifically in relation to bankruptcy could prevent individuals from becoming trustees who are from under-represented groups and/or have valuable life experience that could be of great benefit to charities. We believe that more consideration is therefore required with regards to this aspect, perhaps including specific engagement with organisations operating in relevant areas.

Additional answers

It is SCVO’s view that the Bill will generally lead to the Scottish public being better protected and charity regulation becoming more transparent, and we acknowledge that the Bill would achieve its initial objective of bringing particular aspects of the Scottish regulatory system into line with other parts of the United Kingdom. The Bill itself largely matches OSCR’s original proposals, however, we do remain concerned that certain proposed changes have now been added to the Bill without consultation and that other proposals continue to lack detail or further clarity.

With regards to whether additional administrative burden will be placed on charities, and the possibility that this might be disproportionate for smaller charities, there remains a lack of information in terms of how the implementation of these changes will be carried out by OSCR. While we understand a focus on the changes desired by the regulator in a bid to improve accountability, transparency, and the ability to regulate effectively, a lack of charity input into the original development of these proposals suggests that the needs of charities will not have been a specific focus during this process. As a result of this, we are unclear if the administrative burden on charities will be increased and, as is consistent with our views elsewhere in this response, responsibility should fall upon OSCR to ensure that communication and guidance is efficient and accessible enough to support charities who may face concerns or uncertainty caused by these proposals. We believe that, assuming the expectations and requirements placed upon charities as a result of this Bill are adequately communicated, this could make it easier to start and run a charity. However, as with the potential for additional administrative burden, the lack of concrete detail on how these changes will be implemented leaves us unable to effectively assess the true impact of this legislation on charities and their trustees.

Conclusion

Scotland’s voluntary sector and the services it provides are under pressure, and the regulatory landscape in which voluntary organisations operate within is in urgent need of the kind of improvement that can only come from a joined-up, holistic approach that takes into consideration the many areas and aspects of charity regulation. Without modernisation, our voluntary organisations will continue to be held back by out-of-date regulations that do not reflect the modern world that voluntary organisations in Scotland operate in.

In response to the committee’s call for view, we have shared both our broad support for the proposals contained within the Bill and our concerns that clarity and further detail is still lacking in particular areas. We have sought to pinpoint where we believe further consideration is necessary and to call for a realistic and adequate approach from the regulator towards the engagement, communication, guidance, and support that will be required post-legislation.

The challenges that face charities and the wider voluntary sector in Scotland are not new and nor are the calls for improvements to related legislation and regulation. We acknowledge that this Bill will largely improve the transparency and accountability of charities and will ensure that the regulator is able to carry out its duties more effectively. But we also recognise that this is a limited number of specific improvements that do not greatly impact on the challenges faced by charities in Scotland. We know that the committee shares our aspirations for the sector and we hope it will urge the Scottish Government to ensure that this Bill takes into account the needs of both the regulator and charities. SCVO is here to work with the Scottish Government, Scottish Parliament, and OSCR to create a sustainable sector that is regulated in a way that reflects modern society, ensuring that voluntary organisations can deliver quality outcomes for people and communities across Scotland.

Contact

Jason Henderson                                                                               
Policy and Public Affairs Officer
Scottish Council for Voluntary Organisations (SCVO)
Jason.Henderson@scvo.scot

Last modified on 16 April 2024