Overview

  • The public sector is the second largest source of funding for small charities after the general public.
  • Small charities received £2,041m from the public sector in 2019/20.
  • Half of small charities receive no earned income from the public sector, but one-in-five received over half of their earned income from the public sector.
  • Government income to small charities has declined in real terms over a six-year period, but increased for those with an income over £100m

How much income do small charities receive from government?

  • In 2019/20, small charities received a total income of £2,041m from the public sector.
  • This is the second highest source of income after the general public.
  • Government income to small charities has declined in real terms over five years, from £2553m in 2013/14.

How important is government income to small charities?

  • The picture is mixed – half of small charities received no earned income from the public sector.
  • One in five small charities received over half of their earned income from the public sector, and one in ten 75% or more.

How has government funding changed by the size of charity over time?

  • Over the past five years, income from government has significantly declined for all charities, other than the very largest.
  • The largest charities (over £100m) have seen a a decrease in government income since 2017/2018.
  • Overall, government income for all small charities has dropped by 20%.
  • Charities with an income of under £100k have seen the greatest decline in their income from government, receiving nearly a third less than they did in 2013/14.

Which branch of government invests the most in small charities?

  • Small charities receive an equal share of income from central and local government.
  • Levels of income from from European & International government are much smaller (£44m).
Insights

Public services and small charities

Explore data on how small charities deliver services on behalf of the public sector

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Insights

Grants and donations

How do small charities fundraise from the general public and elsewhere?

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Further reading

NCVO 2020 UK Civil Society Almanac 2020

New Philanthropy Capital 2020 State of the Sector 2020: The condition of charities before the Covid-19 crisis

360 Giving (ND) Grantnav: search and download UK grants data

Locality 2017 Powerful Communities, Strong Economies: The final report of the Keep it Local for Economic Resilience Action Research Project

Locality 2016 Our Impact report 2016

NFPSynergy 2016 Challenging cuts: Investigating the response of charities to frontline service cuts

Lloyds Bank Foundation 2016 Commissioning in Crisis: How current contracting and procurement processes threaten the survival of small charities