The charitable funding system in Scotland is blighted by instability, red tape and competition, charities are warning.

In research published this week they also warn that funding on offer “does not always match what communities need’ and is too short term.

“This makes it harder for organisations to plan ahead and remain sustainable,” said charity sector body the Scottish Council for Voluntary Organisations (SCVO) which has published the research through its Scottish Third Sector Tracker project.

This research involved two focus groups, the first looking at funding and relationships with funders, and the second around funding in the context of the recent Scottish election and the "changing socio-political environment’".

The SCVO says that many respondents spoke of a “soul-destroying process building a funding pipeline” in which only one in ten applications “might be semi-successful”.

'Whacky' funding criteria

Charities also detailed “whacky” funding criteria, disconnected from real need”, and having to plunder reserves to pay wages.

“Voluntary organisations face a funding system that isn’t fit for purpose and partnerships with the public sector that are too often weak,” said SCVO chief executive Anna Fowlie.

“This comes against a backdrop of financial insecurity and rising demand, creating significant pressure on the voluntary sector workforce.”

She added: “Taking action to address these deep seated issues is long overdue.

“The new Scottish Government must now deliver a stronger, more sustainable and empowered voluntary sector.

“As a starting point, that must include delivering Fair Funding and creating a new model of partnership with the sector — one that is set in law, grounded in trust, with shared decision making at its core.

“Without change, the risk is clear: the voluntary organisations communities across Scotland rely on — and that government itself depends on — will be pushed beyond breaking point.”

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