Charities Boost Impact Spending by £5 Billion Despite Ongoing Financial Pressures
New data shows charities expanding their impact and adapting to ongoing sector challenges
New data from the Charity Commission shows that charities in England and Wales increased their impact-focused spending by £5 billion in 2024 despite many facing significant financial strain. The analysis, drawn from charities’ annual returns for the financial year ending 2024, reveals a sector that remains resilient despite consistent economic pressure.
Charities spent £100 billion on societal impact in 2024, a 5.4% increase on the previous year and more than double the 2.5% rise in the consumer price index. Most of this investment (90%) supported UK communities and £11 billion went overseas. Income grew to £102 billion, largely driven by public giving: donations and legacies made up £32 billion while charitable activities generated £50 billion.
Corporate giving played a notable role with just over half of charities earning more than £100,000 reporting financial support from corporate donors.
Charity services under local or national government contracts increased by 7% to 7,358 for a total value of £11 billion. Grant-making charities distributed £17.84 billion in 2024, up from the previous year.
Despite these positive trends, the Commission highlighted the persistent financial challenges to the sector. While the sector’s overall margin improved from a five-year low of £700 million in 2023 to £1 billion in 2024, it still fails to reach pre-pandemic stability. The report identified smaller charities as some of the most vulnerable, with one in four organisations with incomes under £10,000 reporting only breaking even, a key point of difference when comparing the data to organisations in higher income bands.
The data also shows a notable shift in the sector’s workforce. Charities collectively employed 1.6 million people in 2024, marking a reduction of nearly 140,000 jobs from 2023. Volunteer numbers rose slightly with over six million people contributing their time, equating to nearly four volunteers for every paid employee.
David Holdsworth, Chief Executive of the Charity Commission, commented:
“Charities across England and Wales continue to make a huge impact and this analysis of charities’ annual returns underlines their significant social and economic contribution at a local, national and global level. But charity leaders up and down both countries continue to tell us they are under considerable financial pressure. This has an ongoing impact on their ability to deliver which is felt keenly by the communities they serve.”
The Commission has urged trustees to monitor early warning signs and use the Commission’s finance toolkit to strengthen resilience.
As charities continue to navigate a shifting funding landscape, the Commission emphasises the importance of good financial governance to protect vital services for communities across the UK.
