Community Benefit funds: tried, tested and evolving
Foundation Scotland has commissioned the Strathclyde Institute for Sustainable Communities to carry out an in-depth review of our community benefit practices.
Despite the current scale and future growth trajectory of Community Benefit Funds, there has to date been relatively little research exploring the different types of fund designs that exist. This includes how they differ in terms of their operation and governance, the relative merits and drawbacks of these different approaches and how best to structure and govern these funds to ensure that communities reap the most impactful and long-term benefits.
Given that around £30.7 million in community benefit packages was invested into communities in Scotland in 2024 via Community Benefit Funds, and with the scale and breadth of investment expected to accelerate, Foundation Scotland commissioned the Strathclyde Institute for Sustainable Communities, part of the University of Strathclyde, to carry out an in-depth review of Foundation Scotland practices.
The aim of the research was to establish a detailed picture of the approach Foundation Scotland has taken towards supporting communities during the Community Benefit Fund lifecycle and undertake a critical analysis of how strongly this aligns with good practice.
Foundation Scotland represents an important and unique case for research, with over 20 years of diverse operational experience in implementing community benefit arrangements - working with communities, developers and wider stakeholders to establish and operate Community Benefit Funds.
A report of Strathclyde’s findings - A Review of Foundation Scotland’s Approach to Community Benefit Funds – has just been published. The work tests Foundation Scotland’s approach to Community Benefit Funds against the Guiding Principles and Actions for Enhancing Community Benefits from Community Benefit Funds that Foundation Scotland co-produced with Strathclyde in 2025. The research identifies where good practice is being adopted or exceeded, and where practice could flex, adapt, grow and break new ground.
The work was designed to provide valuable insights into how Foundation Scotland creates lasting benefit for communities through the design, operation and governance of such funds, and identify opportunities for Foundation Scotland – and other Community Benefit Fund operators – to retain and enhance good practice.
The report provides clear, data-driven insights into the unique experience of Foundation Scotland and how they support community benefit work, reinforcing their commitment to transparency and accountability. The findings highlight actionable steps for Foundation Scotland – and others - that can drive meaningful change in the evolving community benefit landscape. By commissioning and publishing this report, Foundation Scotland has set a benchmark for this work, and has formed a strong partnership with Strathclyde Institute for Sustainable Communities. There is a clear shared commitment between the two to improve knowledge and understanding of practice in community benefit.
The report also represents an invitation to stakeholders to test and refine the guiding principles of community benefit, and to collaborate and drive up good practice so that Community Benefit Funds are meaningfully governed by the community, for the community.
Rachel Searle, Head of Communities and Impact said:
“This study has proven to be an interesting and insightful exercise for us. Sometimes you need to take a step back to appreciate the breadth of work you are carrying out on a day to day basis, and the depth of partnerships you are forming. Another really beneficial outcome of this study is that it has helped us see where we can learn and, importantly, step up to support better practice.”
Professor Matthew Hannon, Director of the Strathclyde Institute for Sustainable Communities said:
“This report is the culmination of two years of collaborative research with Foundation Scotland. Earlier in 2025, we co-produced sector-level Guiding Principles and Actions to enhance benefits from Community Benefit Funds with Foundation Scotland. This latest report does two things. Firstly, our deep dive case study of Foundation Scotland demystifies Community Benefit Funds and the complex process of their initiation, design, operation and evaluation. Secondly, it evaluates Foundation Scotland’s approach to Community Benefit Funds against the Guiding Principles and Actions, finding not only that Foundation Scotland are adopting good practice across the board but also innovating new approaches to these funds. Through spotlighting Foundation Scotland’s approach, we hope this research will point the way for other organisations to enhance community benefits from these funds.”
Fiona Smith, Chair of Glenkens and District Trust said:
“It’s helpful to see Foundation Scotland’s work on community benefit set out for others to learn about. We’ve really valued them being alongside us right from the very beginning here at the Glenkens & District Trust. They have been invaluable as we have navigated our way through both the strategic and operational detail of community benefit opportunities. It’s complex and future focused work and we so value the expertise, independence, rigour and creativity they bring. They have given us the confidence to try out new things which has made a real difference to the communities we serve.”
Morven Smith, Head of Community Investment at SSE, said:
“Over a number of years, SSE has seen the value that comes from working closely with Foundation Scotland to support communities through community benefit funds. This independent research is an important and timely contribution, helping to ensure that communities remain at the centre of how these funds are delivered across Scotland. We welcome the insights and recommendations, and are committed to building on them so that community benefit funds continue to deliver real and lasting value for people and places throughout the country.”