What the latest Charity Commission data says about financial pressure in the sector
· Posted on: April 13th 2026 · read
Latest Charity Commission sector data offers a useful insight into the state of the charity sector and the pressures many organisations continue to face.
The analysis shows that charities in England and Wales maintained high levels of activity in 2024, with sector expenditure rising to c.£100 billion, up 5.4% on 2023, and income increasing to c.£102 billion, up 5.6%. Much of this income came from donations and legacies (c.£32 billion), while charitable activities generated £50 billion and other trading activities £10 billion. Most spending, around 90%, supported communities in the UK, with £11 billion spent overseas.
The data also highlights the continued importance of external support. Over half of charities with income above £100,000 reported receiving donations from corporate donors, while services provided under government contracts rose by 7%, with a total value of £11 billion. Grant-making charities also increased their support, awarding £17.84 billion in grants during the year.
Despite these positive headline figures, the analysis shows that financial pressure remains a serious issue across parts of the sector. Although the overall gap between income and expenditure improved to £1 billion, this remains below pre-pandemic levels. Around 41% of charities spent more than they received, and smaller charities were found to be under the greatest strain, often operating on the narrowest margins.
The figures also suggest a changing workforce picture. The sector reported 139,725 fewer jobs in 2024 than in 2023, while volunteer numbers rose slightly. More than 6 million volunteers were reported, and volunteers now outnumber paid workers by 3.8 to 1, underlining the sector’s heavy reliance on voluntary support.
The latest data therefore provides a valuable prompt for boards to reflect on their own position rather than rely on sector-wide trends for reassurance. Trustees should consider whether income growth within their organisation is keeping pace with expenditure, whether restricted and unrestricted funds are being managed appropriately, and whether existing business models remain viable in the medium term. Smaller charities may wish to pay particular attention to financial flexibility, as they are often less able to absorb shocks or respond quickly to changes in funding conditions.
More broadly, the data reinforces the point that resilience across the sector remains uneven. Some organisations may be entering the new financial year from a position of relative stability, while others may be facing tighter margins, growing uncertainty and more difficult decisions about delivery, staffing and strategic priorities. In that context, sector data is most useful when it prompts informed discussion and realistic self-assessment at board level.
