‘We deserve nothing less’: Continued pressures renews calls Fair Funding for Scotland’s voluntary sector

New research has found workers in Scotland’s charity sector are facing increasing pressures due to a lack of sustainable, multi-year funding for organisations.

Fear for jobs and instability of contracts feature heavily in the 2025 Voluntary Workforce Survey, carried out by the Scottish Council for Voluntary Organisations (SCVO) – Scotland’s national membership organisation for the voluntary sector – in partnership with Charity Leadership Scotland and Volunteer Scotland.

The report, published today, saw researchers speak to more than 1,300 people working for charities and voluntary organisations, with representatives from across the sector warning that unless action is taken, the situation will not improve.

SCVO are calling for the Scottish Government’s own funding principles to align with SCVO’s definition of Fair Funding – developed through significant research and engagement with the voluntary sector. This includes longer-term funding of three years or more; flexible, unrestricted core funding, which enables organisations to provide security; timely decision-making and the inclusion of inflation-based uplifts and full costs, including core operating costs in grants.

Funding insecurity and uncertainty, and general funding shortages impacting on pay and resources, are all having a negative impact on staff, the research found.

1 in 4 survey respondents reported being on fixed-term or temporary contracts, rising to 1 in 3 for front-line workers. This is far higher than the wider workforce where only 1 in 10 workers is on a non-permanent contract.

More than a quarter of voluntary sector workers (27%) felt it was quite or highly likely they would lose their job in the next 12 months, twice the rate reported in the wider workforce (13%).

Alongside this stress about their future, the number of staff who felt they had a good work-life balance has also dropped from 60% to 50% between 2015 and 2025. Many respondents spoke of workloads increasing due to problems recruiting and retaining staff, often a knock-on effect of funding cuts and funding insecurity.

Despite the pressures facing them, workers also underlined their belief in their work, and the meaningful services they provide. 84% of respondents said that making a real difference to people and communities is one of best aspects of their work, while 87% saw their work as useful – far higher than the wider Scottish workforce.

While still generally positive, job satisfaction is down 15 percentage points from 79% in 2015 to 64% in 2025. The main factors driving this downturn in satisfaction appear to be higher workloads and stress, and most importantly funding.

Commenting, SCVO Chief Executive, Anna Fowlie said: 

“As a sector we are sustained by individuals who are deeply motivated to make a positive impact. Findings from our workforce survey point to a strong and enduring sense of purpose, with staff demonstrating unwavering dedication to their roles, day after day.

“Leaders across the voluntary sector remain committed to providing fair, meaningful and rewarding employment. However, that ambition is too often constrained by the way public funding is delivered. Repeated budget reductions, short-term funding models, late payments, inconsistent decisions and ineffective communication continue to create instability.

“At the same time, our Workforce Survey makes clear the growing strain they are under. Persistent financial pressures — now a familiar feature of the sector’s landscape — are placing significant demands on those delivering vital services.

“There is a clear need for a different approach. The next Scottish Government has an important opportunity to reform the funding environment, making it longer-term, sustainable, flexible and genuinely accessible. They must now implement Fair Funding without further delays. The workforce at the heart of Scotland’s voluntary sector, and the communities who rely on them, deserve nothing less.”

Lucinda Godfrey, CEO of Charity Leadership Scotland:

“These numbers confirm now more than ever what leaders in the sector already feel: the work is vital, but the weight of it is heavy. At Charity Leadership Scotland, we remain committed to collaborating on powerful research which must now lead to meaningful action to protect and support the individuals and organisations underpinning Scotland’s voluntary sector.”

The voluntary sector in Scotland employs just over 136,000 people, meaning that 5% of Scotland’s 2.66million workers are employed in the voluntary sector.

Alan Stevenson, CEO of Volunteer Scotland, commented:

“Volunteer Scotland welcomes this new and timely insight into the experiences of Scotland’s volunteers. We are pleased to see that volunteer satisfaction remains high and that many volunteers are able to find flexible volunteering opportunities. This reflects the hard work of volunteer involving organisations across Scotland to make volunteering a positive and accessible experience. These findings underscore the importance of a healthy, reliable and professional volunteer infrastructure to support volunteers to have a positive experience and to volunteer throughout their lives.”

Shauna Wright, lead officer for fair work in Unite the Union, commented:

“Unite the Union stands with care and not‑for‑profit workers who have faced underfunding in their sector, resulting in higher stress levels and concerns about their future employment opportunities in an industry where they have not felt valued for the work they provide.

“Urgent action is needed to secure fair pay terms and conditions.”