Info for elected members

Charities and charity regulation in Scotland

Why charities and OSCR are important for you

Charities are an integral part of Scotland’s social, economic and civic life. They deliver essential services, support innovation in public policy, and provide a voice for communities across every constituency and region.

About OSCR

OSCR is the registrar and regulator of Scotland’s 25,000 registered charities. We are a non-ministerial department and operate independently of government, reporting directly to the Scottish Parliament. We were established by the Charities and Trustee Investment (Scotland) Act 2005 (the 2005 Act), which sets out the devolved legal framework for charities in Scotland.

The charity sector in Scotland

Charities vary greatly in size and function, from church congregations, youth organisations and small community-based groups run mostly by volunteers, to large educational institutions, operators of social housing or care providers running formally commissioned services. Approximately half (over 12,000) of Scotland’s charities have an annual income of less than £25,000.

They also vary in legal form, from unincorporated trusts and associations to registered societies, limited companies and Scottish Charitable Incorporated Organisations (SCIOs) which were introduced by the 2005 Act.

Depending on their legal form and activities, some charities may also be registered and regulated by other bodies such as the Care Inspectorate, Scottish Housing Regulator or the Charity Commission for England and Wales. We have agreements with these bodies that allow us to share information and coordinate our regulatory responsibilities.

Scottish charity data

Our Sector Overview Report provides a snapshot of the Scottish charity sector, showing what the sector looks like through key data collected by OSCR. The report is interactive, allowing users to filter by income, location, charity type and more.

The Scottish Charity Constituency Map is an online tool that shows Scottish charities by constituency regions and areas. It uses data from the Scottish Charity Register to provide information about charities in different areas across Scotland.

Concerns about charities

Every year OSCR receives several hundred concerns about charities. You can find out more about how OSCR deals with concerns and inquiries on our website. All concerns undergo an initial risk assessment, to determine whether the matter falls within our remit and what approach is appropriate. OSCR acts in the public interest, which means we only make inquiries when concerns raise wider regulatory issues rather than resolving individual complaints. We do not make inquiries on behalf of individuals.

During or at the end of an inquiry, we may decide that it is necessary to use our powers of direction or enforcement to protect charitable assets or to address misconduct. We use those powers proportionately, targeted where they are most needed. Some of these measures are taken by OSCR directly, while others can involve us applying to the court.

Matters that are not for OSCR

Around half of the concerns currently raised with OSCR are not regulatory matters. To help manage expectations, it may be helpful to understand the limits of our role:

• We do not act as a complaints body for all charity-related issues. Constituents who disagree with what a charity does or what it stands for should consider taking their concern to the charity’s trustees.
• Unless there is evidence of misconduct or a risk to charitable assets, we do not mediate internal disputes, including employment-related matters. Nor do we resolve disputes between charities and third parties.
• We do not regulate service delivery standards. Concerns about service quality should be raised with the trustees.
• We cannot intervene to rescue charities faced with closure or serious cuts to their activities, although we do have an interest if there is risk to vulnerable people when a charity is closing.
• Most fundraising activity by charities is self-regulated through a voluntary code of practice, not by us. Concerns should be addressed to the charity trustees and, if not resolved, to the Scottish Fundraising Adjudication Panel. Concerns about public collections are best directed to the relevant local authority or the police if there is suspected criminal activity. However, we are interested in bodies claiming to be charities when they are not registered.

How OSCR can support you as an Elected Member

We aim to be a practical resource for Councillors, MSPs, MPs and their staff. We can provide:

• Data on the number and types of charities in your constituency or region – see our Scottish Charity Constituency Map for more information
• Help navigating the Scottish Charity Register
• Clarity on the requirements of charity status and the legal duties of charity trustees

If you are contacted about a charity, we can:

• Explain whether the issue falls within our remit, although in the first instance we would ask you to guide your constituent to our website
• Advise on appropriate routes for concerns
• Consider whether regulatory engagement would be appropriate or necessary

At a policy level, we can:

• Provide tailored briefings on the charity sector
• Contribute to Committee work and provide evidence for the development of legislation and public policy where relevant

You can also keep up-to-date with the latest news and updates from OSCR by subscribing to our monthly OSCR Reporter newsletter.