Spending and Assets

Overview

In 2019/20, small charities’ expenditure was £10.5bn, 18% of the overall voluntary sector expenditure.
On average, charities with an income under £100k spent more than they earned in 2019/20.
In 2019/20, small charities spent 88% of their total spending on activities related to achieving their charitable mission.
Small charities held 23% of the sectors’ total assets.

In 2019/20, small charities accounted for nearly one-fifth (18%) of the total voluntary sector expenditure (£10.5bn of £56.9bn).
Charities with an income of under £100k were more likely to spend more than they earned, comprising 26% more than their total income that year.
Comparatively, large charities spent less than their overall income.

Small charities spend the majority of their income on activities related to their mission (grants and charitable activities), followed by raising funds and governance.
In 2019/20, small charities spent more money as a proportion of their total expenditure on achieving their charitable mission (87% & 88%, compared to 85% in charities with an income of over £1m).
Small charities spent 3.6% of their total spending on governance (6.6% & 2.5%, compared to 0.5% of in charities with an income of over £1m).

Insights

What are small charities’ main funding concerns? How stable are their finances?

Insights

What are the main sources of income for small charities? How do charities get their income?