Harnessing the third sector will enable the economy to recover faster and better, according to the Scottish voluntary sector manifesto launched at The Gathering 2010 in Edinburgh today.

The manifesto, Doing Things Differently, prompts Government to rethink public service provision and identifies how savvy spending with the third sector could contribute to social and economic recovery.

As well as providing care for the elderly, enthusing and training young people, preserving our natural and cultural heritage, and giving people opportunities to create art or play sport, the voluntary sector generates over £4.1billion a year and provides employment for 130,000 people.

Less than half of the sector's resource - just 40% - comes from government; while government benefits from massive savings that the voluntary sector delivers on the public purse - some projects save over £25 for every £1 invested.

The manifesto outlines essential financial reforms that could help the sector achieve even more.

These include ensuring that 100 per cent of lottery funding is spent in the community and voluntary sector; more VAT can be claimed back; and changes to Gift Aid that would release a further £70m of tax relief to Scottish charities.

Martin Sime, chief executive of the Scottish Council for Voluntary Organisation, said: "It is particularly important given the current constraints on public spending to unleash the potential of the third sector.

"It is the most trusted sector in society and is in the perfect position to create a better, more equal society.

"The third sector is resourceful, innovative and adaptable, yet too often it is hampered by red tape and unnecessary barriers to action. Government must now remove these barriers and enable not just more funding but better, longer-term funding, which will provide a stronger foundation for growth in the third sector."

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