MHA pointed to growing evidence of a crisis.
Expert auditors from Edinburgh have said Scotland’s third sector is in a “fragile state” following charity closures and increasing evidence of financial difficulty.
Emma Marshall of MHA Edinburgh wrote for the Edinburgh Chamber of Commerce warning of the coming pressures for many groups across the country.
The auditor pointed to evidence in the Scottish Third Sector Tracker, as well as testimony of others such as others in the sector.
Stephanie Fraser, CEO of Cerebral Palsy Scotland (CPS), recently reported that the situation was ‘dire’, while CEO of Scottish SPCA, Kirsten Campbell, claims that the Scotland’s charitable sector is in ‘crisis’. In her parting message, Campbell described a “doomsday scenario” where charities are overwhelmed and underfunded.
Emma Marshall, audit director at MHA in Edinburgh, wrote on the Edinburgh Chamber of Commerce website: “Scotland’s charity sector is in a fragile state. Financial strain is widespread, future funding uncertain, and services and roles are at risk.
“Research from the third sector in Scotland, stark admissions from those at the helm – and anecdotes from our own clients – backs this up.
“The situation has been described as a ‘doomsday scenario’ where charities are overwhelmed, underfunded, and expected to compensate for the failures of strained public services without adequate support.”
The calls come after Saheliya, an award-winning mental health and wellbeing support charity working with women facing racial inequality, and Mental Health Aberdeen, both went into liquidation.
Ms Marshall added: “Something must be done. Scottish charities cannot be expected to take on an increased load from a cutting back of under-strain public services without adequate support.
“For some Scottish charities, the challenge has already proved too much. Sadly, they certainly won’t be the last. Operational costs and funding uncertainties are pushing charities in Scotland to the brink. The impact of this is astronomical in terms of service provision and jobs. Charities provide vital support in communities, drive positive social change, raise crucial awareness and address unmet needs of those most vulnerable in society.
“Steps must be taken now to stop the stream of charities having to make the most difficult of decisions: to close, devastating their staff and volunteers and harming the lives of those who rely so heavily on the vital work that they do.”
