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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 Caledonian Exchange, 19A Canning Street, Edinburgh EH3 8EG.

Evidence library

Stretched to the Limit: Scotland’s Third Sector and the cost of living crisis

This report brings together findings from a survey of the ALLIANCE’s organisational membership in the spring, a detailed case study, and a workshop at the ALLIANCE's annual conference. Taken together, these paint a picture of a sector which is under intense stress.

Findings include:

  • 84% of member organisations responding had experienced increased demand for services, yet 61% reported reduction in funding via grants
  • 76% were facing higher bills, and 48% were unable to give their employees pay uplifts.
  • 88% of organisations saying that they would benefit from longer-term funding arrangements.


Recommendations include:

  • Progressing commitments to fair funding for the third sector, in line with the SCVO definition this link will take you away from The Alliance website
  • Ensuring the Fair Work agenda goes beyond funding the Real Living Wage, and instead to pay that is comparable to equivalent statutory sector roles
  • Tailored support for organisations operating in rural Scotland
  • Targeted support for energy bills, and in the longer term lower energy tariff arrangements for the third sector
  • Adopting a human rights based approach to procurement and grant funding
  • Investing in services that reduce demand for acute interventions from the public and third sectors
Last modified on 18 August 2025