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

Third Force News Latest news  Read more