Shirley-Anne Somerville: practical changes now while we address the future
The Scottish Government has published an independent analysis report for the consultation on a review of charity regulation.
It asked whether a review of charity regulation was needed and if so, what should be reviewed and why.
I really appreciate all of those who took time to contribute to the consultation through responses and online events.
The message was clear; you want a wide-ranging review led by the charity sector and I understand that.
Naturally there were different opinions about what a review should cover and why one is needed.
So, it is right that we take time to work with you to determine and refine the scope of a review, and I am committed to making sure that happens over the longer term.
The report also highlights practical challenges charities are facing right now, many of which don’t need a review to be addressed.
I am keen to make tangible progress by delivering improvements to charity regulation over the next year.
We will bring forward two sets of commencement regulations to fully implement the Charities (Regulation and Administration) (Scotland) Act 2023, one in the summer and one at the end of 2025. This will enhance accountability and transparency in charities, which is a key finding from the consultation analysis.
I will introduce new Charities Accounts (Scotland) Regulations in the autumn to address long held concerns about the audit income threshold for charities registered in Scotland. This will raise the threshold from £500,000 to £1 million, making sure that the regulation and monitoring of charity accounts is proportionate.
The Scottish Government will consult on draft regulations to make improvements to the Scottish Charitable Incorporated Organisations (Removal from Register and Dissolution) Regulations 2011, with a view to introducing amendment regulations before the end of the parliament.
The draft regulations are based on recommendations from an independent working group and designed to address practical problems that some people encounter when looking to close their charity.
We will convene a working group to examine the challenges charities can face when looking to incorporate to a Scottish Charitable Incorporated Organisation (SCIO). The SCIO is the most popular form of new charity. We want to make sure there are no unnecessary obstacles to existing charities wanting to change to the SCIO form.
Over the next two years we are providing additional multi-year funding to third sector organisations delivering front line services and tackling child poverty, with grants totalling £60m each year in 2025-26 and 2026-27.
This is just the first step in our Fairer Funding work which seeks to make multi-year funding agreements for the third sector standard practice across government, improve the clarity and consistency of all third sector grants and provide timely notification of grant offers.
I know that charities are facing challenges finding volunteers and keeping up with increasing demand for their services. We are responding through the National Volunteer Recruitment Campaign led by Volunteer Scotland and our continued investment in the backbone infrastructure designed to support the sector.
I am in no doubt about the vital role charities play in our country, delivering services, supporting people and bringing real change in our communities.
Whether that’s tackling child poverty or helping people access the welfare they’re entitled to, charities are essential to supporting communities and improving people's quality of life.
That is why I want to deliver practical changes now, to make sure that charity regulation works in the short term while we plan for how it can work in the future.
Shirley-Anne Somerville is the Scottish Government’s social justice secretary.
