A combination of recession,
public sector spending cuts and a loss of lottery cash has seen registered
charities fall from 23,812 at the end of March 2008 to 23,234 the same time
this year, according to the Office of the Scottish Charity Regulator (OSCR).
The Scotsman newspaper has revealed that the situation has become so serious that Holyrood ministers are now considering offering loans to keep hard-up charities afloat.
The
newspaper also cited reductions in local and national government funding as a
result of tighter public spending, lottery cash being diverted to fund the
London Olympics in 2012, fewer donations, less corporate sponsorship; and
foundations hit by tumbling stock markets.
GCVS Chief Executive Helen Macneil has been amongst the increasing number of voices calling for local and national government action to help the sector, especially since the need for some services is bound to increase. She said: "In times of recession, the third sector's capacity to be flexible, to mobilise resources, to develop services and to meet emerging need effectively, all take on an increased importance".