Our UK Charity Insights Report 2025 — which gathers perspectives from over 500 charity leaders — reveals that:
- Finances remain the top concern for 79% of charity leaders, as inflation drives costs up while donations lag.
- Demand is surging. 86% expect more people needing help this year, yet only 1 in 10 feel fully prepared.
- Resources are increasingly stretched. Two-thirds describe the sector as “unhealthy”, citing funding competition and redundancies.
As one leader shared,
“Charities are struggling due to the external environment. There is more competition for grant funding. The cost of living is impacting charities and there are many redundancies within the charity sector.”
UK charities are doing more with less than ever before.
Yet, optimism persists: three-quarters remain positive about their own organisations, showing resilience rooted in purpose and community spirit.
It shows that when we all pull together, we have the power to grow the support that keeps these vital organisations going.
People, Purpose, and Partnerships Keep Charities Going
Behind every charity’s mission are deeply committed team members who are experts in their field. However, as the cost of living crisis continues to affect daily life, our research shows that 72% of charity leaders are struggling to recruit the right employees, and almost half are increasingly concerned with employee wellbeing.
Equally important are partnerships and networks. Charities that collaborate with local authorities, businesses, or other charities cope with challenges much better than those that go it alone. The most resilient organisations tend to have diverse income streams, strong business relationships, and leaders who can afford to spend less time firefighting and focus to focus on long-term planning.
What is encouraging is that public trust in charities remains strong, especially for local charities, where impact is both personal and visible.
Small, consistent actions can make a big difference in keeping these charities sustainable, safe in the knowledge that they can rely on regular giving to plan for the future.
This is where donors like you can make a real difference.
How you can help:
1. Give unrestricted donations
Charity leaders are field experts who know exactly where funds are needed most— whether that is retaining talented employees, investing in infrastructure, or simply keeping the lights on. Making an unrestricted donation provides the flexibility charities need to survive and thrive.
2. Top up your regular donations
Inflation hits charities just as it hits businesses and households. If you can, simply increasing your regular or one-off donations — even by a few pounds — helps charities keep pace with rising costs.
3. Always tick the Gift Aid box
If you are a UK taxpayer, claiming Gift Aid is free for you, but it boosts your donation by 25%. Every £20 becomes £24.50, and that adds up across millions of gifts each year.
4. Share, advocate, and volunteer
Money is not the only way to support charities close to your heart. Talking to friends, family, and others in your community about the charities you support is a vital way to bring others in, spread awareness and demonstrate impact. The sector’s strength lies as much in social capital as financial capital.
Why it Matters: Resilience in Action
Amidst the statistics are stories that remind us what is possible when resilience meets generosity.
Take Esteem, a Sussex-based charity supporting care leavers. Faced with losing its community space, the team worked with our advisory team on building a strong case for funding support to secure £500,000 to buy their building — safeguarding their home and services for years to come. Every regular gift helps charities like Esteem keep their doors open while they work towards big wins like securing a permanent home.
In Camden, Somers Town Community Association partnered with us to realign its purpose and strengthen impact measurement. Today, its five-year plan is fuelled by donors committed to long-term change.
Such stories are made possible by donors who give charities the flexibility to seize opportunities and act with confidence.
Key takeaways
Unrestricted donations build resilience
They give charities the flexibility to tackle urgent needs and invest in long-term impact.
Inflation hits charities too
Topping up regular gifts helps them keep pace with rising costs.
Gift Aid is free but powerful
Ticking the box boosts your donation by 25%.
Small actions amplify impact
Whether it is sharing charity stories, advocating, or volunteering, every gesture strengthens communities.
Your support is a lifeline
The UK charity sector may be facing its toughest period in decades, but its heart is beating stronger than ever. As individuals, we all have the power to keep that heartbeat going, not just through grand gestures, but through steady, thoughtful giving.
So if you have been wondering whether your donation really makes a difference, the answer is simple: yes, it does.
