It is one of the proudest days in the north-east calendar: the Celebrate Aberdeen parade which honours those who work in the third sector.
Every August, thousands of volunteers from an eclectic range of charity organisations are given the chance to let their hair down and join the festivities on Union Street.
The event has become a means of thanking those who help others in their community and the Granite City has traditionally dug deep for groups who go the extra mile.
But situation is growing more serious
Yet, according to senior figures in many charities, life is growing tougher and they are grappling with a combination of problems which is threatening their survival.
Several of them spoke to the Press & Journal and expressed genuine fears about the future with donations drying up and the public often toiling to pay their own bills…
Aberdeen Cyrenians chief: ‘Cost pressures are too much to bear’
Donna Hutchison, chief executive of Aberdeen Cyrenians, told me she thought it was “inevitable” that the city will lose “some local charities over the next 12 months due to cost pressures that are too much for them to bear.”
The proportion of people in the UK who are giving to charity has fallen to its lowest level in almost a decade, according to the Charities Aid Foundation.
Neil Heslop, CAF’s chief executive, said: “The very significant amount donated by the public to charities and good causes last year [an estimated £15.4bn in 2024] reflects everyday generosity, in every place, across the UK.
“But we are relying on an ever-smaller group of people to give while the challenging economic environment continues to place significant strain on charities.”
And although north-east Scotland has an abundance of charities providing inspirational work across the region, fears have been expressed about its sustainability.
AFC Community Trust: ‘Third sector is filling the gap from local cuts’
Liz Bowie, chief executive of AFC Community Trust, said: “We rely upon the generosity of donors, individuals and corporates, to deliver our extensive work in the community while local authority funding supports our significant work within schools.
“Both are under pressure at the moment.
“The cost-of-living crisis and the national economic climate, compounded locally by the high taxation and uncertainty for North Sea energy firms, makes for a very challenging environment for local charities.
“It is also increasingly difficult to secure long-term, sustainable funding.
“Aberdeen is blessed with a rich mixture of charities supporting our community, but this means that we are all competing for dwindling resources.
“Increasingly, as local authority budgets are cut, the third sector is being relied upon to fill the gap.
“The funding is simply not in step with demand and it is a tough time for charities.”
‘Funding from all sources is under severe strain and demand is rising’
Aberdeen Council of Voluntary Organisations doesn’t gloss over the malaise, with charities often required to step in where councils would once have taken the lead.
Alasdair Ross, its policy and consultations officer, said: “We are seeing growing funding pressures on the third sector, with increasing requests just to keep groups open.
“While donations play a part, funding from all sources – public sector, trusts and foundations – is under severe strain.
“At the same time, demand for services is rising, with community groups taking on more responsibilities beyond traditional charity work.
“That includes often filling gaps in public services and supporting vulnerable people.”
Morven Mackenzie, head of strategy at All Life Chances, is the founder of Celebrate Aberdeen and is justifiably proud of the commitment shown by myriad groups.
Yet the Orcadian isn’t dewy-eyed about the current situation and understands why many members of the public have had to look at their budget and make tough choices.
She said: “There’s no doubt that we’re facing increasingly challenging times just now.
“And the cost-of-living crisis is continuing to put significant pressure on charitable organisations, individuals and their families across Aberdeen.
“Where people may have previously donated to a charity or perhaps given foodstuffs to a foodbank, they are now understandably having to prioritise their own needs.
“As a result, demand for support services is increasing, while donations are declining.
“Charities, social enterprises, and voluntary and community groups play a crucial role across our city, often contributing far more to society than people realise.
“It’s essential we do more to help them build upon the vital work they carry out.
‘It’s not always about money’
“Support doesn’t always have to come in the form of funding. There are many meaningful ways to give back.
“Things such as donating time, sharing skills, or providing items like equipment or furniture can all make a significant difference.
“That said, there’s no denying the importance of financial contributions.
“In my experience, Aberdeen is home to an incredibly supportive business community as well as generous and kind individuals.
We can all make a difference
“There are also opportunities for greater collaboration, not just amongst the third sector, but also between the third, private and public sectors.
“By all working more closely together, I think that we can bring about significant and sustainable change in the future.”
However, Ms Hutchison told the Press & Journal she feared there would be casualties in the charity sector as their budgets are stretched to breaking point.
She said: “Fluctuating oil prices and current government policy relating to the energy sector mean the reduced charitable giving is felt with greater intensity in Aberdeen.
“The local economy remains heavily reliant on the energy sector, and these external influences lead to economic instability, resulting in job losses and reduced disposable income for many residents.
“Consequently, donations have decreased as individuals prioritise essential expenses.
‘It’s a double whammy’
“For us, this is a ‘double whammy’ – fewer donations and increased demand for our services make it an ongoing challenge to meet the continuing needs of the north-east community as more people face financial hardship.
“Many charities are using their financial reserves to cope with rising costs, which is unsustainable in the long term.
“It is inevitable that we will lose some local charities over the next 12 months.”
She continued: “We also know that constant appeals for donations can lead to donor fatigue, where individuals feel overwhelmed and reduce their charitable contributions.
“The challenge for Aberdeen charities is to harness the opportunity for joint initiatives and sharing resources to unite those who share the vision of a prosperous Aberdeen.
“One which provides opportunities for all, regardless of background or circumstances.
“Knowing how agile and adaptive the third sector is in the city, I am confident that we will rise to yet another challenge.”
But it seems not every organisation will emerge from the present troubles unscathed.
And this year’s Celebrate Aberdeen parade on August 23 could be a last hurrah for some vital charities.
Conversation