Two local infrastructure charities that provide support and advice for sector staff and volunteers have merged to combine their resources and better withstand the uncertainties of future funding.

Midlothian Voluntary Action and Volunteer Midlothian have merged to form a new organisation, Midlothian Community Action.

The Scottish charities were already delivering services together under the umbrella of the Midlothian Third Sector Interface, sharing a chief executive, staff and offices.

Midlothian Community Action said the merger was a natural next step to allow the streamlining of internal processes and rebranding of the charity.

The merger is also an opportunity to bring more awareness to what the charities do and strengthen their ongoing partnerships across sectors, an MCA spokesperson said.

Midlothian Voluntary Action had 12 employees and Volunteer Midlothian had 10, with two staff members working across both organisations.

All staff will remain in their existing roles and there will be no redundancies or job losses as a result of the merger, the spokesperson said.

According to its latest accounts, Midlothian Voluntary Action recorded an income of £443,728 in the year to the end of March 2024. Volunteer Midlothian recorded an income of £263,060 during the same period.

“Both organisations were financially sound. However, a major motivating factor [for the merger] was the opportunity to make better use of our shared resources,” the MCA spokesperson said.

“The current operating environment for charities is extremely challenging and we anticipate that the merger will make us better able to withstand the uncertainties of future funding.”

Most board members have joined the new charity, with just one stepping down following the merger. Lesley Kelly will remain as the new charity’s chief executive.

Kelly said: “We are thrilled about the merger and to continue the valuable work of supporting and promoting a dynamic and active third sector in Midlothian.

“The sector faces a challenging time with continued cuts to funding and we will continue to advocate for more resources and support communities.”

Midlothian Voluntary Action maintained its current legal structure and charity number, the MCA spokesperson said. The staff and assets of Volunteer Midlothian also transferred across, following a Transfer of Undertakings (Protection of Employment) transfer, they added.

“We were keen to rename the organisation to send a clear message that it was a merger of two equal organisations, not a takeover,” the spokesperson said.

“Volunteering remains as high a priority for our Third Sector Interface as before the merger.”

The charity said it learned a “tremendous amount” from going through the merger process, some of which was to be anticipated and some of which was unexpected.

“It is likely that there will be other organisations considering mergers as a response to the current climate and we’re happy to share our learning,” the MCA spokesperson said.