Financial stability & sustainability

Overview

In 2019/20, 34% of small charities reported having no reserves, in line with the voluntary sector average of 34%.
The majority of small charities (73%) reported that one of their main financial concerns is competing for limited grants and contracts.
Small charities with an income of £150k to £250k were most likely to be concerned about the risks facing their charities, with under a third (29%) perceiving them to be manageable.
Over a five year period between 14% and 29% of small charities reported that they did not have reserves.
The use of their reserves by small charities has fluctuated over a five year period between 27% and 44%.

In 2019/20, 34% of small charities did not have reserves, in line with a sector average of 34%.
22% of charities with an income of £100k to £1m were without reserves.

The main three financial concerns facing small charities in 2017/18 were competition for limited grants and contracts (73%), generating donations from the public (62%), and a lack of sufficient reserves (42%).
Nearly a third of small charities (29%) also report over-dependence on a single income stream as one of their main financial concerns.
Between 2015 and 2017/18, competition for limited grants and contracts was the most commonly reported financial concern by small charities.

Charities with an income of £100k to £250k had the least confidence in the stability of their organisation, with just 29% reporting that any risks are manageable.
In 2016, charities with an income over £1m were most confident in the stability of their organisation, with nearly 90% reporting that risks to their organisation were manageable.

Since 2014, between 14% and 29% of small charities reported that they did not have reserves.

Since 2014, the proportion of small charities that have reported using their reserves in the previous quarter has fluctuated between 27% and 44%.

insights

How much do small charities spend, and where? How does this compare to the rest of the sector?

insights

What sources make up small charities’ income? How do charities get their income?