The decline of charitable giving in Britain is a troubling trend that has far-reaching implications for the country's voluntary sector and the causes it supports. The Charities Aid Foundation (CAF) report reveals a significant shift in attitudes towards charitable giving, with a £1.4 billion drop in donations last year alone. This trend is particularly concerning given the rising cost of living and the increasing number of people struggling to afford basic necessities.
One of the most striking findings is the decrease in the number of people giving to charity, with only half of people donating in 2025 compared to 61% a decade earlier. This decline is not limited to a specific demographic; even those earning more than £125,000 a year are citing affordability as a reason for not donating. The CAF report highlights that 49% of non-donors could not afford to give, a significant increase from 44% in 2024.
This trend has had a profound impact on the voluntary sector, with even some of the UK's biggest charities facing budget cuts and staff reductions. Macmillan Cancer Support, Samaritans, and Oxfam have all had to make significant adjustments, which will undoubtedly affect the services they provide. The report also notes that the number of donors has flatlined, and the average size of charitable gifts has decreased from £72 to £65.
The shift in donor behavior is also evident in the changing preferences of where people choose to donate. Overseas aid charities, which once received 20% of donations in 2016, have seen a significant decline to 11% in 2025, resulting in a £250 million drop in donations. This mirrors a broader trend of donors favoring causes that are 'closer to home,' such as food banks, which have seen a surge in donations.
However, even food banks are struggling to attract regular donations, with supporters prioritizing their own families during the cost of living crisis. This highlights the complex nature of the situation, where the need for charitable support is rising, but the ability to give is decreasing.
The decline in charitable giving is also linked to a more polarised society, according to Peter Grant, an expert in philanthropy. Right-wing politicians and media have launched 'culture war' attacks on voluntary organisations, undermining their legitimacy among some donors. This has contributed to a broader trend of declining government grant funding for charities, which further exacerbates the challenges they face.
The CAF report serves as a wake-up call for the sector, with Kate Lee, the chief executive of the National Council for Voluntary Organisations, warning of serious challenges for many organisations if the trend continues. The drop in giving is a worrying sign, especially at a time when demand for charitable support is rising. The report underscores the need for innovative solutions to address the changing landscape of charitable giving in Britain.
