Collette Stevenson MSP: the Scottish Government could provide a significant boost to the effectiveness of organisations that do so much to help so many
“We are the essential sector."
These were the words that stuck with me during an informal meeting we held with Scottish third sector organisations in Dundee at the end of this summer.
That day we spoke with representatives from more than thirty local and national organisations, as we sought to gather experiences of and opinions on the Scottish Government’s approach to third sector funding.
Over the course of the day, we heard about the challenges that the organisations faced in securing funding that allowed them to deliver their services and help their communities.
Organisations told us about the struggle to develop services due to inadequate funding contracts and reductions of funding. These issues often presented themselves against a backdrop of rising demand for support, stretching organisations and individuals beyond capacity.
We were also made aware of the significant impact of the short or late notice of funding, which has led to third sector organisations issuing redundancy notices, or in one case, funding being so late that an organisation had to deliver its programme in just two months.
National and local organisations spoke about the administrative burden attached to seeking funding and complying with it terms. As these can differ across public bodies, we heard about the significant workload that this could create for organisations, detracting from their ability to deliver on their charitable aims.
These concerns were echoed in evidence that we held in the parliament, with one organisation saying that a “reporting framework will be the same for £10,000 as it is for £250,000, or the same for £100,000 as it is for £1 million”.
The challenges can be so significant that the Scottish Council for Voluntary Organisations (SCVO) has reported that 88% “of organisations reported taking actions to mitigate financial challenges that they had experienced since December 2023”. That stark figure is a clear indication that things need to change.
The Scottish Government has committed to providing the third sector with fairer funding, but we want to see this fully recognised in the upcoming budget, so that this sector’s essential work can be safeguarded.
Among our recommendations, we would like to see the Scottish Government rise to the challenges in our report and prioritise strengthening its approach to multi-year funding and improving its processes.
We know that the Scottish Government’s ability to agree to multi-year funding is contingent on receiving appropriate funding from the UK Government for subsequent years, but we have made several practical suggestions in our report to overcome these challenges.
We have been pleased to see that our report has been welcomed by the SCVO’s chief executive Anna Fowlie and agree with her desire for “a sustainable sector, strong public services, and resilient communities”.
By implementing the straightforward measures outlined in our report, the Scottish Government could provide a significant boost to the effectiveness of organisations that do so much to help so many in what is indisputably, the essential sector.
Collette Stevenson is the convener of the Scottish Parliament’s Social Justice and Social Security Committee and MSP for East Kilbride.
