What’s Happening in the Third Sector?
Charity Fraud Report: A Five-Year Review
The Fraud Advisory Panel and BDO have partnered for the last five years, offering an important snapshot of fraud trends across the sector from 2021 – 2025.
Key findings show that 34% of charities reported fraud or attempted fraud in the past year, with 38% of cases involving insiders. Nearly three-quarters (73%) experienced a financial loss, yet only 32% recovered funds. Over half of respondents expect the threat of fraud to increase by 2026.
With a record number of survey responses this year, the report provides valuable insight to help charities strengthen prevention and stay alert to emerging risks.
Take a look at the report here.
Concerns remain over the proposal to link volunteering to migrant settlement
We’ve touched on the government’s proposal to make volunteering mandatory for refugees and migrants to earn settlement in previous newsletters. But now, NCVO has written a new open letter, urging Home Secretary Shabana Mahmood to withdraw these proposals. You can read their letter here.
NCVO’s letter demonstrates strong sector opposition, with three-quarters of charities against the plans. A key concern is that volunteering should always be freely given, not made mandatory or tied to immigration status.
They warn that the proposal risks undermining the core principles of volunteering, placing additional strain on already stretched charities, and potentially exposing vulnerable people to exploitation.
The Home Office has said its consultation on the proposals has now closed.
Free online volunteer skills course launches
The University of Leeds has partnered with more than 30 local organisations to launch Essential Skills for Volunteers: a free, open-access online course for existing and aspiring volunteers.
Developed with Voluntary Action Leeds and Leeds City Council, the course covers:
- confidence building,
- teamwork and communication,
- safeguarding (with input from NSPCC and Childline),
- equity, diversity and inclusion.
Learners who complete the course receive digital badges recognised by partners across the city, supporting Leeds’ ambition to introduce a ‘volunteer passport’.
Created in response to recruitment and retention challenges identified in the city’s volunteering strategy, the initiative is a strong example of cross-sector collaboration to build volunteer confidence and capacity at a local level.
The Scottish third sector tracker – Latest pressures faced by Scottish charities
Have you ever taken a look at SCVO’s Scottish Third Sector Tracker? The Tracker is an expanding research panel of organisations from across Scotland, sharing real-time insight into their experiences, challenges and concerns as the sector navigates ongoing and emerging pressures.
Their latest report highlights a sector that remains resilient and committed, but increasingly stretched by rising costs, funding delays, workforce and volunteer shortages, and growing demand. Secure, multi-year funding and investment in staff and volunteer capacity emerge as key themes, alongside concerns about financial sustainability and morale.
If you’re navigating recruitment pressures, tight budgets or uncertainty around future funding, the report offers valuable insight into the wider landscape many organisations are currently operating in.
Find out more and access their interactive dashboard here.
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