Why charities must rethink major donor fundraising in 2026
Ikhlaq Hussain | 31 January 2026 | Blogs
Across the UK charity sector the strategic question is no longer simply “how do we raise more?” It is how to build income resilience while protecting impact in a more volatile environment as less people are giving. In 2026 major donor fundraising sits at the centre of that answer not as an additional income stream, but as a core organisational capability.
The donor base is narrowing, as CAF reports that 50% of people donated in 2024, down from 58% in 2019. In response, many organisations have intensified fundraising activity through additional campaigns, increased digital spend, and greater focus on acquisition. I
n the short run, however, this often increases operational workload faster than it improves net income, particularly as acquisition costs rise and public attention becomes more fragmented.
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Major donor giving is growing
While overall number of people are giving less, major donor giving is growing. Donations from high-net-worth and ultra-high-net-worth individuals reached £11.3 billion in 2024, growing at an average annual rate of 18% since 2020, indicating sustained momentum at the top end of the giving spectrum. Barclays Private Bank research reinforces this trend, showing that median annual donations among UK HNWIs more than doubled, increasing from £5,500 in 2019 to £12,000 in 2025.
Untapped capacity at the top end of giving
The above numbers nonetheless represent only a modest share of available capacity. CAF’s report highlights that if UK millionaires were to give just 1% of their investable assets, an additional £12 billion could be unlocked for the sector.
Research consistently indicates that major donors typically hold back their giving not due to limited capacity, but due to limited confidence in organisational clarity, delivery, and impact reporting. A lack of confidence in understanding how charities operate (35%), difficulty accessing clear information about impact (28%), and feeling overwhelmed by sector complexity (25%) are among the top reasons donors hesitate to give more.
Institutional readiness is limiting major donor growth
Therefore it is clear that the primary constraint on growth from major donors is not wealth or willingness to give more, but the sector’s ability to engage that capacity with confidence, structure, clarity, and credibility.
In 2026, charities that continue to treat major donor fundraising as informal, ad-hoc activity risk increasing fragility within their income mix. However, organisations that embed a structured major gifts programme as a strategic function are going to be better positioned to stabilise revenue, strengthen donor confidence, and secure support at a scale that matches today’s fundraising environment.
Finally, as giving from the general public is declining, major donor fundraising is no longer an option for the sector: it is now a necessity. Charities must strengthen their organisational readiness to engage with major donors more effectively and cultivate deeper, trust-based relationships as they are able to give at scale.
Unlocking major donor potential therefore requires the institutionalisation of a major gifts programme, with minimum foundations including (but not limited to) a clear Case for Support, an appropriate budget, defined structure and ownership of the pipeline, disciplined stewardship, credible reporting, and visible, engaged leadership.
References
- 1. Charities Aid Foundation (CAF) (2024). UK Giving 2024.
- 2. Beacon Collaborative (2025). UK High-Net-Worth Giving Estimates.
- 3. Barclays Private Bank (2025). The Modern Philanthropist.
- 4. Charities Aid Foundation (CAF) (2023). High Value Giving and Wealth Insights.
- 5. Barclays Private Bank (2025). The Modern Philanthropist.
- Philanthopy advising explored in new book (3 February 2023)
- Foundation produces major donor fundraising toolkit (6 December 2018)
- It’s not just about zakat in Muslim giving (3 February 2020)
About Ikhlaq Hussain
Dr Ikhlaq Hussain (PhD) is a philanthropy and fundraising strategist supporting charities to raise significant funds for social impact. He is Principal Consultant at the London School of Philanthropy, a Fellow and Trainer at the Chartered Institute of Fundraising, and a Visiting Lecturer at Bayes Business School. His work specialises in major gifts, donor strategy, and organisational readiness for sustainable income growth.