Charities encouraged to share funding challenges with Holyrood Committee

The Committee is launching a consultation on third sector funding today and wants to understand what can be done to make the public funding process more efficient, so available funding can be used more effectively. The Committee’s findings will be shared with the Scottish Government in advance of its next budget.

Scotland’s third sector faces significant challenges due to increasing demand and wider economic issues.

The COVID-19 pandemic led to a surge in demand for third sector services and support. Furthermore, the impact of the cost of living crisis on household budgets has resulted in individuals and families seeking help when they did not need it before.

Additionally, due to the price rises associated with inflation, third sector organisations are having to spending more on their running costs.

Over recent years the Committee has heard that third sector organisations need access to longer term funding, unrestricted core funding and accessible and consistent approaches to funding applications and reporting.

Now the Committee would like to collate views from the third sector and its funders so that it can examine the public funding landscape and make recommendations to the Scottish Government.

Commenting on the launch of the consultation, Collette Stevenson MSP, Convener of the Social Justice and Social Security Committee said:

“We have heard third sector organisations’ concerns about the challenges they face with an increased demand for their services offset against a backdrop of greater pressure on their funding.

“With a significant amount of the third sector’s funding coming from contracts and grants issued by local authorities, the Scottish Government and other statutory funders, we would like to understand what public bodies could do to ensure their processes and funding are fair and efficient.

“I would encourage all third sector organisations and their funders to share their views on this important issue by 16 August 2024.”