Slash in public sector funding forcing charities to rely on goodwill of general public

SCVO media release 20 November 2014

To deliver on new First Minister’s mission to tackle poverty & inequality, Scottish Government needs to invest more in third sector

• Following a £200m (20%) drop from 2010-2013, public funding now only makes up 34% (£1.7bn) of charities’ income
• Public donations increased by £100m since 2010, reaching £807m in 2013
• Income generated by charities through trading, sales, rents and investments also increased by over £100m since 2010

New research published today by the Scottish Council for Voluntary Organisations (SCVO) on funding and spending patterns of charities and other third sector organisations in Scotland shows a significant drop in public funding. Ruchir Shah, Policy Manager, SCVO said: “It’s really encouraging to hear our new First Minister say she’s making it her personal mission to tackle poverty and inequality, but in order to make that happen this pledge must be matched with more long-term investment in the third sector. “The impact of funding cuts and a slow economy are really starting to show now and with even more cuts to come, charities are having to think outside the box to find new, more sustainable, sources of income. “Many charities are generating more income themselves and attracting more support from members of the public. “Overall we’ve seen a rise in income of nearly 6% between 2012 and 2013, driven by a small number of large charities but not all organisations are coping quite so well. “Charities have proven time and again that they make a positive difference to the lives of the most vulnerable people in our communities and that they can find new ways to respond to ever rising demand despite drops in public sector funding.But this can’t continue indefinitely.” ENDS

1. The Scottish Council for Voluntary Organisations (SCVO) is the national body representing the interests of charities, voluntary organisations and social enterprises.  The Scottish third sector turns over £4.9 billion a year and employs 138,000 people in over 45,000 organisations
2. Ruchir Shah is available for interview and further comment, please call Charlotte McNeill, Press Officer, SCVO on 0779 060 1995