SNP Move Gives Substantial Boost to Local Charities

Banffshire and Buchan Coast MSP Karen Adam has welcomed a new Scottish Government decision that will give a major boost to small and local charities, reducing costs, cutting red tape, and freeing up more funds to support people and communities.

New legislation laid before the Scottish Parliament will raise the audit income threshold for charities from £500,000 to £1 million, meaning that from next year, around 93% of Scotland’s 24,500 charities will no longer need to undergo a full audit.

The change responds directly to feedback from the voluntary sector about rising costs and the limited availability of charity auditors.

Karen said this move will make a real difference to the small, volunteer-led organisations across Banffshire and Buchan Coast, from local food banks and community halls to youth projects, animal welfare groups, and heritage initiatives, many of which have raised the issue directly with her.

She also highlighted that rural charities face additional barriers, with organisations often struggling to find auditors due to their limited scale and the distance to larger towns and cities where such services are available.

Karen Adam MSP for Banffshire and Buchan Coast said:

“This is a hugely welcome step that will make a real difference to charities and community groups that are the backbone of life across Banffshire and Buchan Coast.

In meetings and correspondence with local organisations, I’ve heard time and again how costly and time-consuming audit requirements can be, for charities already stretched thin by rising costs and demand. Rurality adds another layer of challenge: charities often struggle to find auditors nearby, and when they do, the costs can be significantly higher.

That’s why my team and I have been lobbying for this change, and I’m delighted to see the Scottish Government taking action. Raising the audit threshold means more time and money can go where it truly matters, supporting local people, projects, and causes.

This is a common-sense move that reflects the reality on the ground and shows once again that the SNP Government is listening and responding to our communities and on their side.”

The updated regulations, The Charities Accounts (Scotland) Amendment Regulations 2025 will come into force on 1 January 2026, ensuring that Scotland’s charity framework remains fair, modern, and proportionate.