This article uses survey data to explore how far the terms and conditions of voluntary sector staff in Scotland are undergoing a process of reform against the backdrop of the sector's greater engagement in contracting for outsourced public services and a more challenging public expenditure environment. Its findings reveal that they have been undergoing a widespread process of diminution, which would appear to be becoming both deeper and broader. They further argue that this process has been intimately connected to a harsher funding environment and therefore raise the prospect of it intensifying further as the current British government's deficit reduction programme progresses.