# Income falls short of expenditure for majority of Scottish charities, says SCVO

- Link: https://fundraising.co.uk/2012/09/12/income-falls-short-expenditure-majority-scottish-charities-says-scvo/
- Published: 2012-09-12T10:28:37+01:00
- Author: Howard Lake

The majority of Scottish charities are spending more than they are raising, having
suffered income drops from funding cuts, according to the Scottish Council for Voluntary
Organisations (SCVO).

While some larger charities and housing associations have achieved modest growth
in income, most charities have still not managed to achieve the income that they
were generating in 2009. As a result, many are spending some of their reserves.

The Scottish third sector’s total income did rise a little in 2011, from £4.4 billion
in 2010 to £4.5 billion in 2011. Turnover, however, is still down, with a total 
turnover of £3.21 billion in 2011 compared to £3.22 billion in 2009.

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Although the sector’s assets and reserves have increased slightly to £9 billion,“
the growth in assets held by some larger charities and housing associations is masking
major erosion of assets held by smaller organisations”, according to the SCVO.

The picture presented reflects that experienced by many other charities over the
past few years – a drop in income combined with a rise in demand for their services.

Martin Sime, Chief Executive, Scottish Council for Voluntary Organisations, said:“
As income falls short of expenditure, particularly for smaller charities, organisations
are being forced to use what assets and reserves they have left to keep their doors
open for as long as possible. With limited reserves, which many organisations already
dipped into last year, charities are running out of ways to compensate for the funding
drain.

“Organisations are working hard to maintain the high quality services they provide
to communities across Scotland and keep their staff. With ever growing demand set
to skyrocket as the UK welfare cuts kick in, third sector organisations are facing
an impossible conundrum. Something will have to give to secure a sustainable future
for the sector.”

www.scvo.org.uk/wp-content/uploads/2012/09/SCVO-Scottish-Third-Sector-Statistics-
2012.pdf