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.
Part B: Exploring the impact of funding challenges
Part B: Exploring the impact of funding challenges on voluntary sector intermediaries
This section confronts six of the biggest affected areas from the impact of funding issues and challenges faced by voluntary sector intermediaries, which include an inability to plan for the longer-term, governance under pressure, constrained service delivery, reduced financial sustainability, diminished wellbeing of the workforce, and limited capacity to do the job. This section details what senior leaders said on the impact of funding challenges their organisation.
An inability to plan longer-term
Those interviewed discussed the restrictions that annual funding places on their ability to think and plan for the long-term, diminishing organisations’ confidence and causing frustration that they cannot make the impact they would like to have. Organisations feel they cannot operate on a strategic basis with short extensions to funding.
Voluntary organisations said:
Governance under pressure
Those interviewed are tasked with supporting their Trustee Boards to run organisations in a responsible and effective manner. Annual accounting requires organisations have the resources needed to continue operating on a going concern basis. Uncertainty places significant pressure on leaders and those with a legal duty to demonstrate this.
Voluntary organisations said:
Constrained service delivery
Organisations feel that their ability to deliver services for their members and wider communities are constrained by gaps in support, wasted time in repetitive funding negotiations, fragmented funding sources, and outdated reporting mechanisms that do not focus on successful outcomes or prioritise activity that can have the most impact.
Voluntary organisations said:
Reduced financial sustainability
Challenges in securing core funding from sources beyond the Scottish Government means that any delay to funding or static inflexible funding will put the financial sustainability and sometimes even the survival of organisations in harm’s way. Most organisations are coping okay, but this is unsustainable, and a sudden change could have significant consequences.
Voluntary organisations said:
Diminished wellbeing of the workforce
The most significant impact that these funding challenges and indeed the cumulative impact of consequences covered in this section relates to the wellbeing and consistency of these organisations’ workforces, the lifeblood of any organisation. Staff morale at all levels surfaced as an area where the impact of funding challenges is felt, from those on short-term contracts to the demands of managing these tensions felt by senior leaders. The word ‘sanguine’ was used in multiple interviews when describing the situation; leaders are experienced and familiar with the annual anxiety caused by uncertain funding arrangements, but this is optimism in a bad situation.
Voluntary organisations said:
Limited capacity to have the most impact
While limited capacity could fall under constraining service delivery, the capacity issue was a key topic raised during the interviews, particularly in relation to finding additional funding from other sources to ensure sustainability in the short-term. Those interviewed also spent a great deal of time chasing the Scottish Government for a decision or has experience of spending lots of time adjusting to new monitoring and reporting approaches that often change without any real strategic thought as to how these could be improved in partnership.