Just over half of charities across England and Wales (53.3%) increased their income in the last financial year, according to the 6th edition of the Charity Financials Income Spotlight report, with overall income growth up 5.8% to £4.3 billion. The report tracks annual income growth, surpluses and deficits, and for the first time examines income by location.
46.7% of charities in England and Wales saw income decrease, while two fifths of all revenue generated came from the capital.
The key findings of the report are:
o Charity income for the latest financial year is £77.5bn.
o Income grew by 5.8% in the latest year.
o Income grew by £4.3bn.
o 157,995 organisations reported income.
o Two-fifths of all revenue are generated by organisations located/registered in London. These organisations saw an increase in annual revenue of £2.2bn.
o Most charities are small organisations with an annual income of £100k or less representing 71% of all charities but generate just 3% of the total annual income.
o A handful of organisations with income over £50 million, making up just o.1% of the population generate over a third of the total income.
This year, the 2019 Charity Financials Income Spotlight report looks at income by location for the first time and shows that nearly 21,000 charitable organisations are located or registered in London, which holds 40% of the revenue generated in 2017-18. 17% more came from the South East and 12% from Anglia and Eastern.
London charities also made the most annual gains, increasing their annual revenue by £2.2bn, while charities in the South East, the Midlands and the North West increased their income by nearly half a billion in the latest year.
Wales was the only region to see a decrease in annual income. In percentage terms London charities grew their income by 8%, the Midlands 10% and the North West by 11% over the latest financial year, while Welsh charities saw a 2% decline in revenue.
Overall, just 7.3% of charities in England and Wales have an income greater than £500k, while small organisations with an annual income of £100k or less account for 71% of charities and generate 3% of the total income.
Organisations with an annual income of over £50 million make up just 0.1% of the charity population yet generate over a third of the total income; 36.7%. In fact, the number of charities with income over £50m continues to increase with these driving much of the sector’s growth. In 2018, these organisations increased annual income by £2.9bn, representing 68.5% of the total annual change.
The Charity Financials Income Spotlight annual report costs £75 + VAT to download (details on the Charity Financials website), although some further analysis can be viewed for free on the Charity Financials Fundraising page. The Charity Financials Insider page is also worth looking at for other articles about funding data and trends.