# Overall sector income rises but smaller charities continue to struggle

- Link: https://fundraising.co.uk/2016/04/14/overall-sector-income-rises-smaller-charities-continue-struggle/
- Published: 2016-04-14T08:48:46+01:00
- Author: Melanie May

**The charity sector saw a 5.8% rise in overall income in 2013/14, but while Britain’s
biggest charities saw their income rise in 2013/14, smaller charities saw a decrease
in real terms, according to [NVCO](https://www.ncvo.org.uk/) statistics.**

Charities with an annual income of more than £10m saw growth, while overall income
for smaller and medium-sized charities declined or stayed the same. Those in the
£10m–£100m annual income category saw income grow by 3.7%, while those in categories
below £1m all saw falls in their income.

Charities in the £100,000-£1m category saw their income decrease by -0.7%, while
those in the £10,000-£100,000 category saw a -1.7% drop, and those with an income
of less than £10,000, saw a fall of -3.6%.

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The total income of those charities in the £100m+ category grew 26%, driven in part
by increases in their income but also by an increase in the size of the category
as a whole with a notable number of charities exceeding the £100m threshold for 
the first time.

The figures are based on analysis of charities’ accounts as submitted to the Charity
Commission, and highlight a continuing overall trend of larger charities increasing
their income in recent years, while smaller charities have seen reductions.

**Overall income**

Overall income for the sector increased to £43.8bn in 2013/14, mainly as a result
of increases in income from individuals. Spending also rose by 3.5% to £41.7bn. 
Earned income from individuals, including fees for services and fundraising earnings
such as charity shop sales, was up 4.2% to £10bn, while donations were up 7.7% at
£7.2bn. Total income from individuals grew to its highest level ever in real terms
at £19.4bn, though donations remained below their 2010/11 peak.

Income from government, largely in the form of contracts for running public services,
also rose by 3.5% to £15bn, but remained below its 2007/8 to 2011/12 level. Most
of the rise in government income went to the largest of charities with incomes over
£100m a year. This was driven in particular by a number of very large contracts 
with or [grants to charities](https://fundraising.co.uk/2016/11/15/google-grants-for-charities/)
in this category. However, government grants to the sector, at £2.8bn, were less
than half their level ten years prior in 2003/4.

Sir Stuart Etherington, chief executive of NCVO, said:

> “Charities of all sizes make an immense difference to our society and our world
> every day. We should be pleased that some of Britain’s most well-known and influential
> charities are continuing to grow and thrive. However, these figures do underline
> our concern that small and medium-sized charities are struggling in particular
> at the moment. We all need to focus on what more can be done to support those 
> good organisations which are nevertheless continuing to struggle in the current
> climate.”

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