# Charity surpluses dropped by 60% in two years of recession

- Link: https://fundraising.co.uk/2011/05/25/charity-surpluses-dropped-60-two-years-recession/
- Published: 2011-05-25T12:06:06+01:00
- Author: Howard Lake

**The Charities Aid Foundation (CAF) reports that charities’ surpluses dropped by
60% between 2007 and 2009 during the recession, demonstrating that many charities
are now operating “on a financial knife-edge with little room to breathe”.**

Analysis of charities’ annual returns on CAF’s recently launched website, [Charity Trends](http://www.charitytrends.org/InsightFull.aspx),
shows that registered charities in England and Wales had on average £24,507 of surplus
in 2007, compared to £10,240 in 2009, which is the last year with complete data.

Overall these charities’ total surplus dropped from £3.59 billion in 2007 to £1.45
billion in 2009. Adjusted for inflation, this total is even less than that recorded
for 2002.

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![Chart showing CAF's Charity Trends report on surpluses.](https://wfay6x.infiniteuploads.
cloud/2026/09/caf_charitytrends_surplus.jpg)

Trends in charities’ surpluses based on annual returns 2002-2010, adjusted for inflation

CAF defines surplus as total income minus total expenditure.

Colin Walton, Head of Charities at the Charities Aid Foundation said: “Our analysis
shows just how difficult the last few years have been for charities financially.

“The fall in surpluses makes things extremely difficult for charities as it means
less to invest in their organisation and staff, less opportunities to expand their
services and less to put aside into reserves. Charities have always had to work 
efficiently, but the situation over the last two to three years has meant more and
more charities are working on a financial knife-edge.”

 * **[ESRC research says cuts are likely to hit charities harder than expected](https://fundraising.co.uk/2011/06/07/esrc-research-says-cuts-are-likely-hit-charities-harder-expected/)**(
   7 June 2011)
 * **[Financial performance of 100 charitable trusts to be revealed](https://fundraising.co.uk/2011/09/14/financial-performance-100-charitable-trusts-be-revealed/)**(
   14 September 2011)
 * **[Irish charities set to close due to funding difficulties](https://fundraising.co.uk/2012/04/12/irish-charities-set-close-due-funding-difficulties/)**(
   12 April 2012)