Large rise in giving to charity

Donations to charities saw a significant increase in 2006, new figures have revealed.

According to a report from the Charities Aid Foundation, total contributions to the UK’s top 500 charities reached £10.9bn last year.

This represents a rise in income of 8.6 per cent, or almost £1bn, on the previous year, easily outstripping the growth rate of GDP.

As a proportion, voluntary contributions such as donations, grants and gifts-in-kind remained the largest source of funding for charities, accounting for 38 per cent of all income.

Fees for goods and services made up 34 per cent of earnings, fundraising events collected 11 per cent, legacies brought in 11 per cent, investments and rent netted 4 per cent, and lottery money added 2 per cent.

Smaller charities, however, were shown to be a third more dependent on voluntary gifts than their larger counterparts.

Andrew Jones, executive director of external affairs at the Charities Aid Foundation, urged the bigger charities to help those with fewer supporters by sharing expertise and resources and through joint campaigning: “This success comes with a responsibility: there is a tremendous amount that these charities could be doing to support and enhance the activities of the UK’s smaller charities.”

He added: “By working more closely with their smaller counterparts, these charities benefit from the networks and community links enjoyed by smaller groups, lend support to less mainstream areas of charitable activity and benefit from their innovation and niche expertise.”

Commenting on the figures, Megan Pacey, who is director of policy and campaigning at the Institute of Fundraising, said: “There’s a lot more care and attention going into the sector, both in terms of how charities fund raise and how donors select which charity they will give to. Donors are taking the time to make themselves aware of where their money will be going and as a consequence charities have to work that bit harder to win people over.”