A new report has revealed significant capacity and funding challenges facing the hundreds of community organisations that deliver essential services across the Highlands and Islands.
Commissioned by Highlands and Islands Enterprise (HIE), the study paints a complex picture of resilience, resourcefulness, and rising strain within the region’s community sector.
Thousands of people, both paid staff and volunteers power these groups, which provide everything from childcare and health services to jobs, housing, and cultural programmes.
But behind that essential work, the report highlights growing concerns around financial sustainability, staffing, and access to support.
“This is a hugely valuable piece of work,” said Margaret McSporran, HIE’s Head of Community Wealth Building.
“Community organisations are central to inclusive growth and local resilience… but they’re facing very distinct challenges.”
The survey, conducted by the Diffley Partnership in late 2024 and early 2025, received 284 responses, two-thirds from rural areas and nearly 40% based on islands.
Collectively, the groups employ more than 1,400 people, with 95% paying at least some staff the Real Living Wage and rely on around 5,000 volunteers.
But many respondents flagged issues around volunteer fatigue, uncertain funding, rising costs, and complex support systems.
More than 9 in 10 said volunteers are critical to their work, and most groups are managing multiple priorities: delivering services, sustaining local jobs, protecting assets, and supporting culture and heritage.
Despite that, 93% of respondents said they were confident about their viability over the next 12 months, though that figure drops to 72% when looking three years ahead.
The report also shows momentum around climate action, with 81% of organisations taking at least one step toward net zero, including cutting energy use, sourcing local services, and repurposing materials.
Island-based groups and those with higher turnover or more assets were more likely to feel prepared for the transition.
Still, many said they needed more help to understand and plan for what net zero actually means in practice.
Encouragingly, there was strong appetite for deeper collaboration, particularly with the public sector and growing interest in strategic asset management and income-generating activities.
Groups running trading subsidiaries or managing community-owned assets often had higher turnover and were more confident about long-term sustainability.
McSporran said the research would help inform HIE’s future approach.
“It reinforces what we see on the ground,” she said.
“There’s real positivity around collaboration, youth engagement, and climate action, but also a clear need for better support on strategic planning and funding.”
The findings are already being shared with the Highlands and Islands Regional Economic Partnership and will be published more widely in the coming months.
