18/11/11

By Andrew Holt

Charities experiencing staff cuts and rising demand for services are worried about the future of their organisations, SCVO’s State of the Sector survey has revealed.

More than three quarters (76%) of third sector organisations expect demand for their services to increase in the next 12 months but nearly one fifth (19%) expect staff numbers to reduce over the same period.

“A clear clash is emerging between growing demand for services and a reduction in staff numbers, opening a gap which third sector organisations won’t be able to fill,” said Martin Sime, chief executive, SCVO.

Sime added: “But SCVO is offering a solution. Community Jobs Scotland will deliver 2,000 paid jobs to young unemployed people in third sector organisations across Scotland, boosting their employment prospects and helping over stretched staff to meet growing demand. So far 700 jobs have been created.

“39% of respondents plan to recruit more volunteers over the next year but recruiting, training and managing volunteers takes time and resources. There isn’t an endless supply of people wanting to give their time for free and, even if there was, they are not a substitute for paid staff.

“With the number of people in Scotland claiming Job Seekers Allowance up by 8,300 compared to this time last year, staff cuts will not only impact on the third sector’s ability to deliver cost-effective services to the most vulnerable in society, it will also have a knock-on impact on the wider Scottish economy.

“The third sector is great at preventing social problems but with 80% of organisations expecting the sector’s financial situation to get worse, we urgently need to see all rhetoric for a greater third sector role in the delivery of public services matched with greater investment to give young people an opportunity to work in the sector.”

Key findings:

76% of organisations expect demand for their services to increase in the next 12 months

19% expect staff numbers to decrease

31% of organisations (with turnover over £1m) expect staff numbers to decrease

39% expect to recruit more volunteers in the next 12 months

47% of organisations are unsure or concerned about the overall future of their organisation

80% of organisations expect the economic situation in the sector to worsen in the next 12 months

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