The Scottish Third Sector Tracker - wave 6 infographic summary (Spring 2023)
Almost all organisations recorded a rise in overheads again into April/May 2023, with energy and staffing costs leading this increase. Increasingly, these rising costs are thought to be having a detrimental impact on organisations’ ability to deliver their services.
Financial challenges remain the most common issue reported across the sector. In contrast, the increase in organisations reporting decreased turnover in December 2022 appears to have been reversed and accompanied by a notable jump in those recording an increased turnover in April/ May 2023. For those seeing increased turnover, grant and trading income has often underpinned this rise.
Financial reserves remain important to the survival of many third sector organisations. However, new data suggests almost half of those using their reserves feel this is unsustainable and more organisations now report that they have access to less than 6-months’ operating costs in their reserves.
