Twenty years of Community Benefit in Scotland: what we’ve learned and why it matters more than ever
Right now, conversations about how communities should benefit from energy related developments are louder—and more urgent—than ever.
As Scotland’s journey to net zero becomes more complex and political consensus begins to shift, Community Benefit Funds (CBFs) are drawing growing interest from policymakers, developers, communities, activists and commentators alike. They offer a powerful promise, but they also face big questions. Who should benefit? How should decisions be made? And how can these funds be fair when they focus on specific places (some small, some much larger) rather than all places?
In short: CBFs are landing in a busy, noisy, and increasingly contested landscape. Expectations are rising. Scrutiny is intensifying. And as more people look to these funds as a source of opportunity—or challenge—everyone wants their voice heard.
That is precisely why this study matters now.
After more than 20 years working alongside communities and developers to design, administer and review CBFs, Foundation Scotland commissioned the Strathclyde Institute for Sustainable Communities to conduct an independent, in-depth study of its own approach to CBFs. At a time when the sector is expanding rapidly—and when debates about fairness, impact and community voice are becoming sharper—this report offers clear evidence, grounded insight and a calm explanation of what good practice looks like.
Here are a few highlights from the report: A Review of Foundation Scotland’s Approach to Community Benefit Funds
A Growing Force for Good
Community Benefit Funds started as a relatively modest idea. Today, they represent a major source of investment for local priorities for hundreds of communities in Scotland. In 2024 alone, over £30 million in community benefit flowed directly into Scottish communities. Foundation Scotland has different types of ‘touch points’ with almost 100 funds, together representing around 30% of this total funding.
This growth isn’t slowing down. With new renewable energy projects and transmission infrastructure in development, the scale of community benefit is expected to rise significantly. That means more opportunity—but also more complexity. Communities are being asked to shoulder significant responsibility, often with limited capacity, and that’s where our approach matters.
What the Review Found
The independent research team spent months diving deep into our processes, our partnerships and our impact to produce a case study report. They examined our work from every angle: the early negotiation stages, fund design, governance models, day-to-day operations and long-term evaluation. They talked with our partners—community panels, development trusts, project owners and others—to understand what works and what can be improved. Their conclusion? Foundation Scotland provides a “rigorous,” “trusted,” and “highly valued” approach that has been continually refined over two decades of hands-on experience.
We act as a “one-stop-shop” for designing, managing and reviewing funds. Our role as an independent, knowledgeable and fair intermediary was repeatedly highlighted as vital—both for communities and for developers.
But the review also does something even more important: it places our work within the wider landscape of what “good practice” looks like and confirms that Foundation Scotland is strongly aligned with the aspirational Guiding Principles and Actions for Enhancing Community Benefits from Community Benefit Funds we co-produced with Strathclyde earlier in 2025. Our model is community-led, impact-focused and adaptable, and we are recognised for sharing learning across the sector.
Why Communities Value This Work
One of the most inspiring parts of the review comes directly from community voices.
Many communities simply don’t have the time or the administrative capacity to handle the ins and outs of managing a fund. They want to focus their effort on delivering projects, not fund administration. So they look to Foundation Scotland to handle the heavy lifting while keeping decision-making on strategy and spend firmly in local hands.
Communities that have worked with Foundation Scotland told researchers that they valued:
• Independent, expert advice
• A trusted partner who can mediate and resolve issues
• Support to build strong, lasting relationships with developers
• Someone to ensure fairness, transparency and good governance
• A “critical friend” who brings national experience but understands local context
In short, communities want to feel confident that their fund is being managed well, fairly and sustainably—and that’s where we play an essential role.
Why Developers Value This Work
Project owners also spoke about the reassurance and stability that an experienced intermediary like Foundation Scotland can provide. With so many competing demands, most developers don’t have in-house capacity to manage fund arrangements at a community level. They rely on us for:
• A clear, consistent process
• Strong relationships with communities
• Honest brokering when tensions arise
• Sound judgment grounded in decades of experience
• Transparent reporting and accountability
This stability builds trust. And trust, in turn, builds confidence for developers to back new ideas and more innovative fund arrangements.
Looking Ahead: Opportunity and Responsibility
The review doesn’t shy away from areas for further improvement—and we welcome that. As the sector grows, so must we.
We must continue to sharpen our saw, build our capacity, communicate more and better about what we’re doing and learning, and strengthen how we demonstrate impact. But the report also confirms something we have long known: that CBFs are about much more than the money. They are about agency and ambition and contribute to building all kinds of capital in a community—social, human, cultural, political, natural and built. That’s a lot of non-financial wealth that has yet to be counted or recognised. Perhaps that needs to be the next study.