The publication also includes 17 recommendations for the Scottish Government, its charity regulator, grantmaking foundations themselves, and the organizations which seek their grants.

The research by the University of St Andrews Business School’s Centre for the Study of Philanthropy and Public Good (CSPPG) identifies 315 charities that mainly distribute funds to other organizations, rather than run services themselves. Around half of the foundations, both in number and in terms of total funds, are based in Scotland’s two largest cities, Edinburgh and Glasgow.

These foundations generated a collective total income of £2.6bn in their last year, a figure significantly larger than the £601m of grants made. However, the researchers warned that it could be a mistake for the Scottish Government to create laws, like those seen in other countries, to force foundations to distribute a certain percentage of their assets each year.

“The modelling suggests importing a similar rule without careful design could backfire,” a CSPPG press release says, noting that it might encourage some to “cut back to the minimum”, reducing the sector’s total outlay.

Other recommendations in the report for the Government include engaging with foundations with low levels of grantmaking, and to develop further regulations for emerging forms of philanthropy, such as donor advised funds (DAFs). Meanwhile, recommendations for the Office of the Scottish Charity Regulator (OSCR) focus on improving the data available on grantmaking foundations and charities to enable better policymaking.

On this point, the project’s lead research Dr Christopher Dougherty says:

“We now have a clearer picture of the scale of foundation wealth in Scotland, but we still lack reliable data on restrictions, investments and grant recipients. Without that, it is very difficult to design evidence-based policy.”

Meanwhile, grantmaking foundations are urged to “consider economic counter-cyclical funding practices, to increase funding when economic conditions are worse to better respond to community needs”, alongside three other recommendations around better engagement with both others in the sector, and local and national government.

Grantseekers are told to “focus on pragmatism in approaching grantmaking foundation”.

Last year, Fundraising Europe highlighted new research showing that there are approximately 175,203 foundations across Europe, with total annual expenditure of €76bn. CSPPG’s data therefore shows that Scotland’s foundation make up just under 1% of that total expenditure, but represent only 0.2% of total foundations.

Picture by Henrik Hjortshøj on Unsplash

CAF’s Scotland Giving Report also found that Scotland accounted for 11.8% of all UK charitable donations, despite representing just 8.4% of the UK’s population.

However, the increase in donations was not fuelled by more people giving. Instead, it was driven by the same number of people giving significantly more. 2017 saw the average donation increase to £60 in 2017 from £36 in 2016.

The most popular cause was children and young people. 28% of those surveyed gave to this cause, followed by 27% to medical research, and 25% to animal welfare.

Two-thirds (66%) of people also took part in a charitable or social activity, such as volunteering for a charity, donating money or goods, or buying an ethical product. More than half (56%) of those interviewed said they signed a petition in the previous 12 months, while 27% had done so over the previous four weeks.

This is the second annual Scotland Giving Report, and is based on YouGov monthly polling of 1,061 adults in Scotland between January and December 2017.

Sir John Low, chief executive of Charities Aid Foundation, said:

“It’s great to see the total amount donated increasing across Scotland. Activism is also on the rise, perhaps reflecting the turbulent times in which we live. This paints a picture of a thriving, vibrant society of which we should all be proud.

“It’s easy to take the work of our charities for granted – indeed CAF’s research over many years shows that millions of people benefit from their work without even realising it. But this report shows how much people value good causes. Without the support of these generous donors, we would all be so much the poorer.”

Rogare’s Critical Fundraising (Scotland) Report, launched in Edinburgh last month, found a need for more investment both by umbrella bodies and charities into research and analysis, and also highlighted the lack of affordable professional development opportunities, leading to a lack of skilled senior fundraisers across the Scottish profession and difficulty in recruiting and maintaining high standards.

The report states:

“Umbrella bodies and charities themselves must invest in accessing and producing Scotland-specific research and analysis that enable learning and evidence-based decision making. Additionally, they must strive to provide a comprehensive programme of training and professional development tailored to the Scottish market and accessible to fundraisers of all sizes, stages and locations.”

Other issues identified and developed in the report include Scottish fundraising regulations, cuts in public funding, the number and size of charities in the country, and the implications of the GDPR and other data protection legislation.

The Critical Fundraising Report was researched and compiled by a task group of Rogare’s International Advisory Panel, led by Scotland-based consultant Mafe Marwick, who added:

“The aim of this report is to identify and explore the main issues that affect fundraising practice in Scotland, and to offer recommendations to tackle these issues. We hope that the issues and topics developed in the report will resonate with readers, and will be a stepping stone for debate and discussion, and for fundraisers to work together in order to find solutions to the challenges identified.”

The report makes 23 recommendations, including:

– Because demand for fundraisers exceeds supply, new and better recruitment processes and induction plans must be developed, such as providing candidate packs that give greater insight into roles being advertised.

– Charities should nominate an individual or a committee to take responsibility for ensuring compliance with data protection. One of their first jobs should be to identify the lawful basis for processing activity in the GDPR, and document this.

– Collaborations must be supported by improvements in training provision across the sector and recognition that achieving long-term financial sustainability through self-generated income requires investment. Government – national and local – can nurture this through provision of training. Funders too can play a part, by permitting funds for capacity building in their grants, thereby recognising their role in helping charities’ long-term financial resilience.

– Because there is a lack of affordable professional development in Scotland, fundraisers in Scotland, at least in the medium term, will need to accept that the learning and development support for their charity will be limited. As a consequence, they will need to be proactive, to seek out opportunities and build their own personal brand.

The Critical Fundraising (Scotland) Report is the second in the series following the publication of Critical Fundraising (Ireland) Report at the Ask Direct Summer School in Dublin in August. Reports for the USA and Italy will be published in the spring of 2018 and work on a Canadian report is about to get under way. All of Rogare’s Critical Fundraising Reports are ‘live’ documents that are regularly updated.

The Critical Fundraising (Scotland) Report can be downloaded here.

All Rogare’s outputs, including the Irish report, are available here.

Led by the SCVO, 20 representatives attended from 15 organisations including ProjectScotland, Enable Scotland, RSPB Scotland, Carers Trust, and the Scottish government. They were also joined by WCVA and NCVO.As well as discussing the threat Brexit poses to the sector, the delegation emphasised their need to continue links with Europe once it has taken place.

The two-day visit saw the delegation meet with the European Commission, European Parliament, and European Civic Forum through a programme of events. These included a reception in the European Parliament Building, hosted by Alyn Smith MEP to help fellow MEPs from Catalunya, Austria, Germany, France, Ireland, and the UK understand Brexit and Scotland’s situation, as well as a networking event at the European Civic Forum with civil society partners from across Europe. Events also took place exploring common challenges faced across Europe and tackled by civil society.

In a blog post on the visit, SCVO Parliamentary public affairs officer Craig Wilson said:

“We wanted to let our hosts know that Scotland’s third sector is overwhelmingly pro-European and that we want to ensure a strong and dynamic future relationship with them – regardless of the final Brexit outcome. At the same time, we wanted to make clear our frustration at the lack of space for civil society in the ongoing debate and to ensure our voice is heard (and concerns understood) as negotiations proceed.”