As we approach the end of 2024, Douglas Adam, Director of Public & Not-for-Profit at Livingston James, reflects on the challenges and opportunities that have impacted the voluntary sector in Scotland this year.
Rising economic pressures and societal challenges have led to a growing demand for services and support provided by the voluntary sector in Scotland. Charities now face the dual challenge of delivering sustainable services to meet an increase in demand, while contending with heightened budgetary pressures and reductions in either core or commissioned funding.
The recent rise in national insurance contributions is likely to have a significant and detrimental impact on the sector. This impact is threefold:
- Increased operational costs – placing a strain on already tight budgets.
- Workforce challenges – maintaining or expanding staff capacity may become difficult, potentially reducing the ability to meet growing service demands.
- Funding allocation pressures – charities that are reliant on grants and donations may struggle to balance operational costs with delivering impactful projects. Higher costs may render some initiatives less feasible or sustainable.
In particular, smaller charities with limited financial resilience face heightened vulnerability. Many may be forced into difficult decisions, including reducing the number of staff, restructuring operations, or scaling back frontline services.
The grant funding landscape has also shifted significantly. Funders are increasingly prioritising collaborative, impact-driven projects with a focus on long-term sustainability rather than short-term relief. Place-based approaches and localised strategies have gained traction, with charities tailoring their efforts to the unique needs and strengths of specific communities across Scotland.
The voice of lived experience remains integral to shaping future policies on poverty, health, and social justice. However, there is now a stronger appetite for coalitions that enhance collaborative advocacy efforts, amplifying the sector’s influence in key debates. Additionally, there is a growing emphasis on involving service users in designing and delivering services, ensuring solutions are aligned with community needs.
The pandemic accelerated the adoption of digital tools, and many charities continue to offer hybrid support models. Balancing in-person and online services is crucial for reaching diverse communities. However, challenges such as equitable access to digital tools and the potential loss of personal connection in fully virtual interactions remain areas of concern.
Demand for board trustees has also reached unprecedented levels, with a large number of trustee roles being advertised at any given time on platforms such as Goodmoves. Charities are increasingly seeking diverse board representation to reflect the communities they serve. There is also a growing focus on recruiting trustees with specialised expertise in areas such as digital transformation, financial management, or policy advocacy to address emerging challenges in these areas. The adoption of virtual and hybrid meetings has broadened the pool of potential board members, reducing geographical constraints and offering greater flexibility for these roles.
In conclusion, the voluntary sector in Scotland stands at a pivotal juncture; navigating complex challenges while embracing opportunities for transformation. Rising economic pressures and changing societal dynamics have amplified the demand for services, yet financial and operational constraints are testing the resilience of charities, particularly smaller ones. Adapting to shifts in funding priorities, workforce challenges, and the increased cost of operations will require innovative and collaborative approaches.
The level of the voluntary sector’s continued impact will be reliant on on its ability to leverage community-driven and place-based strategies, amplify the voices of lived experience, and meaningfully engage service users in shaping solutions.
To find out more about how Livingston James can support your Public & Not-for-Profit recruitment needs, please contact [email protected].
Reflections on 2024 from Douglas Adam, Director of Public & Not-for-Profit
As we approach the end of 2024, Douglas Adam, Director of Public & Not-for-Profit at Livingston James, reflects on the challenges and opportunities that have impacted the voluntary sector in Scotland this year.
Rising economic pressures and societal challenges have led to a growing demand for services and support provided by the voluntary sector in Scotland. Charities now face the dual challenge of delivering sustainable services to meet an increase in demand, while contending with heightened budgetary pressures and reductions in either core or commissioned funding.
The recent rise in national insurance contributions is likely to have a significant and detrimental impact on the sector. This impact is threefold:
In particular, smaller charities with limited financial resilience face heightened vulnerability. Many may be forced into difficult decisions, including reducing the number of staff, restructuring operations, or scaling back frontline services.
The grant funding landscape has also shifted significantly. Funders are increasingly prioritising collaborative, impact-driven projects with a focus on long-term sustainability rather than short-term relief. Place-based approaches and localised strategies have gained traction, with charities tailoring their efforts to the unique needs and strengths of specific communities across Scotland.
The voice of lived experience remains integral to shaping future policies on poverty, health, and social justice. However, there is now a stronger appetite for coalitions that enhance collaborative advocacy efforts, amplifying the sector’s influence in key debates. Additionally, there is a growing emphasis on involving service users in designing and delivering services, ensuring solutions are aligned with community needs.
The pandemic accelerated the adoption of digital tools, and many charities continue to offer hybrid support models. Balancing in-person and online services is crucial for reaching diverse communities. However, challenges such as equitable access to digital tools and the potential loss of personal connection in fully virtual interactions remain areas of concern.
Demand for board trustees has also reached unprecedented levels, with a large number of trustee roles being advertised at any given time on platforms such as Goodmoves. Charities are increasingly seeking diverse board representation to reflect the communities they serve. There is also a growing focus on recruiting trustees with specialised expertise in areas such as digital transformation, financial management, or policy advocacy to address emerging challenges in these areas. The adoption of virtual and hybrid meetings has broadened the pool of potential board members, reducing geographical constraints and offering greater flexibility for these roles.
In conclusion, the voluntary sector in Scotland stands at a pivotal juncture; navigating complex challenges while embracing opportunities for transformation. Rising economic pressures and changing societal dynamics have amplified the demand for services, yet financial and operational constraints are testing the resilience of charities, particularly smaller ones. Adapting to shifts in funding priorities, workforce challenges, and the increased cost of operations will require innovative and collaborative approaches.
The level of the voluntary sector’s continued impact will be reliant on on its ability to leverage community-driven and place-based strategies, amplify the voices of lived experience, and meaningfully engage service users in shaping solutions.
To find out more about how Livingston James can support your Public & Not-for-Profit recruitment needs, please contact [email protected].
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