Charities across England and Wales increased their spending on public benefit by £5 billion in 2024, even as many organisations continued to grapple with financial strain, according to new

data from the Charity Commission. The regulator’s latest analysis of annual returns—covering more than 110,000 registered charities—offers one of the most detailed snapshots of the sector’s financial health. It shows that total spending on charitable activities reached £100 billion in the year to 2024, marking a 5.4% increase compared with the previous year and outpacing inflation.

Most of this spending—around 90%—was directed towards supporting communities within the UK, while £11 billion funded international causes.

Income growth keeps pace—but pressures remain

Charity income also rose, climbing 5.6% to £102 billion. Public generosity remained a cornerstone of the sector, with donations and legacies contributing £32 billion, nearly one-third of total income. Smaller charities, which make up the vast majority of the sector, continue to depend heavily on these voluntary contributions.

Other key income streams included £50 billion generated through charitable activities and £10 billion from trading. Corporate support also played a significant role, with over half of charities earning more than £100,000 reporting donations from businesses.

Government partnerships are becoming increasingly important. The number of services delivered under contract with public bodies rose by 7% to 7,358 agreements, collectively worth £11 billion. Meanwhile, grant-making organisations distributed £17.84 billion, including £12 billion to other charities.

Financial resilience still fragile

Despite the positive headline figures, the data highlights ongoing financial fragility across the sector. For the third consecutive year, warning signs point to a continued squeeze on resources—particularly among smaller organisations.

The overall margin between income and expenditure improved slightly to £1 billion, up from £700 million in 2023, but remains below pre-pandemic levels. While 57% of charities reported a surplus, 41% spent more than they earned.

Smaller charities appear especially vulnerable. Among those with incomes under £10,000, one in four reported breaking even, a far higher proportion than larger organisations.

Workforce shifts: fewer jobs, more volunteers

The sector also saw notable workforce changes. Although charities still employ around 1.6 million people, the number of paid roles fell by nearly 140,000 compared with the previous year.

At the same time, volunteer involvement increased. More than 6 million people contributed their time in 2024, with volunteers now outnumbering paid staff by nearly four to one. Around 70% of charities reported relying on volunteers to deliver their services.

Regulator urges stronger financial planning

Charity Commission Chief Executive, David Holdsworth, said:  “Charities across England and Wales continue to make a huge impact and this analysis of charities’ annual returns underlines their significant social and economic contribution at a local, national and global level. 

But charity leaders up and down both countries continue to tell us they are under considerable financial pressures. This has an ongoing impact on their ability to deliver, which is felt keenly is by the communities they serve. 

One of the most important things trustees can do is plan and act on any ‘early warning indicators’ to help manage their finances whilst they still have a range of options. We have guidance to help charities facing into challenging times”. 

The role of the Charity Commission

As the independent regulator for charities in England and Wales, the Charity Commission plays a central role in maintaining public trust and accountability in the sector. It oversees registration, ensures compliance with legal obligations, and provides guidance to trustees on governance, safeguarding, and financial management.

One of its key tools is the annual return, which charities must submit each year. This dataset not only helps the Commission identify risks and intervene where necessary but also supports transparency—allowing donors, policymakers and researchers to better understand how charities operate.

Compliance with reporting requirements improved in 2024, with 97% of eligible charities submitting their returns, up from 93% the previous year.