The Scottish third sector tracker - wave 10 report (Spring 2025)
The findings from the tenth wave of the Scottish third sector tracker highlight a sector that continues to face significant and evolving challenges. Financial pressures remain the most critical challenge, with increased costs, uncertainty, and funding shortfalls consistently cited as major concerns. A notable proportion of organisations are operating under budget deficits, increasingly reliant on reserves, and struggling to maintain service levels and staffing. While confidence in short-term survival remains relatively high, the sustainability of many organisations is clearly under threat.
Staff and volunteer recruitment, and to a lesser extent, retention, also persist as significant issues, and the anticipated impact of increased National Insurance contributions only adds to the financial strain. Despite these pressures, many organisations continue to deliver services successfully and are proactively seeking funding and other support to strengthen resilience.
This wave reasserts the importance of continued investment and support for the sector to ensure long-term sustainability and the ability to meet the growing needs of communities across Scotland.
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