It has a budget of £3.23 million but was sent "fundable applications" worth £3.8 million last year.
In the future, bids will go through a double selection process and those that meet the normal selection criteria will then be assessed against "qualitative" tests. These include how they fit with funding priorities, their score on user involvement and equal opportunities and whether the project is in an area not considered to have received a fair share of Lottery funding in the past.
The fund also wants applicants to submit more modest bids. "Bringing the demand for grants into line with the supply of funds is an enormous challenge," said director of the fund in Scotland, Adrienne Kelbie.