Decline in UK Charitable Donations: A Closer Look at Changing Trends
In a significant shift for the UK’s charitable sector, the Charities Aid Foundation (CAF) has released a new report highlighting a dramatic decrease in public donations. The report indicates that the total amount donated by the public fell to £14 billion in 2025, down from £15.4 billion the previous year.
The average monthly donation also saw a decline, dropping from £72 to £65. Furthermore, only half of UK adults reported making a donation in the past year. When including sponsorship, overall participation was at 55%, continuing a downward trend from 69% in 2016.
Over the last several years, the UK has lost around 6 million donors, with the most significant drop occurring during the pandemic, followed by only a slight recovery. CAF suggests this trend indicates a deeper change in public attitudes towards charitable giving.
Mark Greer, managing director at CAF, commented on these changes, noting that generosity in the UK is becoming “increasingly conditional, selective, and fragile.” He pointed out that this trend reflects a shift in how people weigh charitable giving against rising household pressures and social scepticism. “Charities can no longer rely on habitual generosity or goodwill,” he warned.
The report delves into the motivations behind charitable donations. Emotional connection is a primary driver, with 78% of donors citing emotional reasons for their contributions. Other motivating factors include feeling connected to a cause (53%), personal experience (35%), and a sense of duty (32%).
Social influences also play a role, with 17% of donors being swayed by recommendations from friends, family, or colleagues, which prove more effective than charity emails, which influence only 3%.
Health charities received the most donations in 2025, totalling £2.08 billion, followed by organizations supporting children and young people (£1.49 billion), and religious causes (£1.29 billion). Despite a smaller donor base, those who give to religious causes are notably generous, averaging £90 a month.
Income levels also impact donation patterns. Basic-rate taxpayers contributed the most overall, at £6.9 billion. Meanwhile, higher-rate taxpayers were more likely to donate, while additional-rate taxpayers were only slightly more likely to give than non-taxpayers. High-net-worth individuals contribute notable sums not fully captured in the £14 billion total.
Conversely, 49% of non-donors cited financial constraints as the reason for not donating, up from 44% the previous year. Concerns about how donations are spent deterred 19% of non-donors, and many simply did not feel compelled to donate.
Trust remains a crucial factor, with 75% of the public finding charities reasonably trustworthy. However, those with greater trust donate more generously and support a broader range of causes.
Ashling Cashmore, CAF’s head of impact and advisory, emphasized the importance of consistent giving through mechanisms like direct debit, which offer charities stability and foster long-term relationships with donors.
The report also underscores the significance of Gift Aid, contributing £1.7 billion in 2025. However, CAF estimates that £560 million in potential Gift Aid goes unclaimed annually. Enhanced awareness of tax relief could boost charitable contributions, especially as more individuals enter higher tax brackets.
CAF is advocating for government action to rejuvenate the culture of giving, suggesting measures such as promoting payroll giving and investing in local philanthropy infrastructure. Mark Greer highlighted the government’s potential role in reversing the decade-long decline.
The impact of decreasing donations is evident across the voluntary sector, with major charities like Macmillan Cancer Support and Oxfam implementing staff and budget cuts. Experts, including Peter Grant of Bayes Business School, warn that reduced public donations and government funding may hinder charities’ ability to meet rising demand.
However, the narrative is not entirely grim. Stewardship’s Generosity Report 2026 highlights that committed Christians in the UK continue to donate at significantly higher levels than the general public. Committed Christians, defined as those attending church and reading the Bible weekly, donated an average of £326 a month, far surpassing the UK average.
Stewardship also notes the role of trust, aligning with CAF’s findings on public confidence. Trust in local churches correlates with higher levels of giving, suggesting that strong relationships and trust play a vital role in fostering generosity.
This article was originally written by www.christiantoday.com
