Charities across Scotland could soon find it easier to focus on their work rather than their paperwork as new plans move through the Scottish Parliament.
The Scottish Government intends to raise the income threshold for compulsory audits from five hundred thousand pounds to one million pounds which would ease the administrative load on thousands of organisations.
Under the current rules a charity earning more than five hundred thousand pounds must complete a full audit which is often expensive and time consuming for groups that rely heavily on volunteers or operate on tight budgets.
If the proposals are approved the new threshold will come into force on the first of January and reshape how smaller charities manage their finances.
It would mean that 93% of Scotland’s 24,500 charities charities will no longer require an audit at all.
For many organisations that would be a welcome shift because money currently spent on compliance could move directly into supporting local services and community projects.
Kate Forbes, MSP for Skye, Lochaber and Badenoch, said the move recognises the essential role charities play in communities across the Highlands.
“The Highlands has so many great charities that add huge value to our communities.
“They are irreplaceable, and many of them offer lifeline services and support when people need it most.”
She said the new rules would let local organisations operate with fewer obstacles.
“These excellent proposals will make it easier for charities across the Highlands to operate.”
Ms Forbes said the Scottish Government was focused on supporting the third sector at a time when many groups face rising demand.
“While the SNP is getting on with supporting charities, Labour is taxing them to the hilt through their National Insurance rises.”
She said the proposals were another example of practical support for a sector that continues to underpin daily life in towns, villages, and rural communities.
“We are serious about supporting our third sector organisations, and this is yet another example of how we are doing that.”
If the legislation passes in the coming weeks it will offer charities more freedom to concentrate on the work they do best which is helping people through hardship and building stronger communities across Scotland.
