Top 500 charities' voluntary income up by 7.5%, says Charity Trends 2004
Howard Lake | 4 July 2004 | News
The jump in voluntary income reverses the decline of 2001-2002, according to Charities Aid Foundation in the 25th edition of Charity Trends.
Voluntary income to the top 500 fundraising charities jumped last year by 7.5% in real terms, according to Charities Aid Foundation’s latest edition of ‘Charity Trends’. Of this, income from donations and fundraising rose by 10% and 16% respectively, while legacy growth slowed to 3%.
The 25th annual analysis of the top charities’ income and expenditure reports that they generated a total income of £8.6 billion, of which £4.6 billion (53%) came from voluntary sources.
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The composition of the top 500 charities has changed considerably, with 250 new entries. The entry level continues to rise: even the lowest ranked charity now has a voluntary income of around £2 million.
Between 2002-03, the single largest source of income to the top 500 charities was donations and grants at 31%, followed by trading fees and contracts at 21%, grants from public bodies at 15%, and legacies at 13%. While income from rent and investments represented 9% of total income, its value actually fell in real terms by 3%.
Expenditure as well as income has risen. Total expenditure by the top 500 for 2002-03 was £8.1 billion, a rise in real terms of 10% on the previous year. 84% (£6.7 billion) went on direct charitable expenditure, up by 11% on the previous year; 9% on fundraising, up by 8%; and 3% on trading, which grew by 7% on 2001-02.
The gap between the largest and smallest charities in the UK continues to widen. ‘Charity Trends’ found that 20% of total income to the top 500 charities in 2002-03 was generated by the top 10 charities alone – receiving £1.6 billion between them.
Cathy Pharoah, CAF’s Director of Research and author of ‘Charity Trends’ said: “This year’s results show that currently the strength of charity income lies in its diversity. But while last year saw the greatest growth in non-voluntary income, this year has seen a revival of income from voluntary sources: charities need long-term strategies to escape this annual see-sawing of income”.
‘Charity Trends’ 25th Edition is published by CaritasData Ltd priced £270 or £135 for registered charities.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.