Holmes Mackillop proposes charities merge in response to report warning charities see demand rise while half struggle to cope
In response to a major international study warning that charities are seeing demand for their services rise while half are struggling to cope, Holmes Mackillop Solicitors is proposing that some charities consider merging.
Charities Aid Foundation’s (CAF) latest World Giving Report: Charity Insights, reveals that charities across the world are being forced to cut staff, raid reserves and create waiting lists as demand for their services outstrips their ability to respond.
CAF said fewer than two in five charities believe they are financially and operationally well placed to succeed over the next three years.
And the Scottish Council for Voluntary Organisations’ Scottish Third Sector Tracker found eight in 10 Scottish organisations reported financial challenges while its State of the Sector 2026 report warned that apparent growth in Scottish charity income masks a squeeze on resources, with inflation and rising staffing, insurance and utility costs eating into much of the increase.
Cara Vallance, associate solicitor at Holmes Mackillop, said: “We know that in such challenging times for many people, with the cost-of-living crisis a daily reality, the public increasingly rely on charities to provide services which were once provided by the state.
“There is mounting evidence that, as a consequence of rising overhead costs, many charities are now feeling acute financial pressure to wind up, which raises the prospect of a gap in services for communities.
“In such circumstances, charities should consider merging with another charity providing similar services to streamline costs and prevent competing for funding.”
ENDS
For further information please contact Cara Vallance on 01292 264 091