Giving is shrinking and becoming less predictable: Donations fell to £14bn in 2025 (down from £15.4bn), with 6 million fewer donors than in 2016 and a growing reliance on spontaneous giving.
Trust, relationships and relevance drive generosity: People give to organisations they trust and feel connected to; clear impact reporting and meaningful engagement matter more than campaigns alone.
Community foundations are well placed to respond: Their local, trusted, place-based giving models can help rebuild participation, capture spontaneous giving, and reconnect communities with philanthropy.
The CAF UK Giving Report 2026 presents a challenging yet constructive picture for the charity sector. Its central message is clear: giving in the UK is not disappearing, but it is becoming more selective, less predictable and increasingly dependent on trust. For trustees and charity leaders, this represents not simply a fundraising challenge but a strategic shift in how charities engage supporters and build long-term resilience.
In 2025, the British public donated an estimated £14 billion to charity, down from £15.4 billion in 2024. This decline reflects not only fewer donors, but also smaller contributions on average, with monthly giving falling from £72 to £65 (median: £28 to £26). As CAF highlights, “total charitable donations dropped to £14 billion in 2025”, underlining the pressure on voluntary income at a time of rising demand.
More concerning than the short-term fall in income is the longer-term decline in participation. CAF estimates that six million fewer people gave to charity in 2025 compared with 2016. Over the same period, the proportion of adults donating dropped from 69% to 55%, leaving the UK close to an even split between donors and non-donors. CAF further estimates that, had participation remained at 2016 levels, charities would have received an additional £12.4 billion over the past decade. For trustees, this represents not simply a loss of income, but a weakening of the social contract of giving that underpins civil society. Fewer donors today mean a smaller pipeline for future philanthropists, volunteers and advocates.
However, the picture is not wholly negative. Encouragingly, 84% of people still engaged in some form of civic or charitable action, whether volunteering, donating goods, or supporting campaigns. This suggests that public willingness to contribute remains intact, even if financial giving is under pressure.
Regular giving continues to provide a vital foundation for many organisations. Direct debits and standing orders generated approximately £2.89 billion in 2025, contributing to more than £4 billion in planned and automatic giving overall. Yet this stability is under strain. Around 2.8 million people cancelled a regular donation during the year, while two-thirds of giving is now unplanned and often prompted by ad hoc appeals or personal requests. For trustees, this growing reliance on episodic income introduces greater volatility, making budgeting, reserves planning and long-term investment decisions more challenging.
The report offers particularly valuable insight into donor behaviour. Giving is rarely driven by formal fundraising campaigns alone. Instead, the strongest triggers are:
A conversation with a friend or colleague remains the most common prompt for giving, far outweighing traditional channels such as email or direct mail. Donors are primarily motivated by empathy, trust and a sense of belonging, many citing a desire to “feel part of something bigger”. For trustees, this reinforces an important principle: sustainable fundraising is rooted in relationships, not solely in marketing activity. Organisations that communicate impact clearly and enable supporters to share their own stories are likely to be better positioned.
CAF’s findings indicate that people reporting higher levels of trust are more likely to give, and in some case to give more. Conversely, lower trust correlates with reduced engagement and lower levels of giving. In an increasingly sceptical environment, trustees should view transparency, clear reporting and strong governance not as compliance exercises, but as core drivers of income and supporter retention.
The cost-of-living environment continues to reshape giving patterns. Among non-donors, 49% say they cannot afford to give, up from 44% the previous year. At the same time, a substantial proportion cite disengagement rather than financial constraint. This highlights a dual challenge for the sector:
Gift Aid remains one of the most immediate opportunities. While worth £1.7 billion in 2025, an estimated £560 million goes unclaimed each year. Awareness is high, but execution remains inconsistent.
For trustees, improving Gift Aid capture represents a relatively low-cost, high-impact way to enhance income without relying on new donor acquisition.
For community foundations, the report’s findings are particularly relevant, reinforcing the unique role they can play in rebuilding participation and strengthening local philanthropy.
They are well positioned to:
Reconnect people with local giving through visible, place-based impact that rebuilds the habit of generosity within communities.
Act as trusted intermediaries for donors seeking confidence, simplicity and credible local giving opportunities.
Channel spontaneous generosity by converting support from local campaigns, crisis appeals and donor-advised funds into long-term community investment.
Build connection and belonging by telling compelling local stories that strengthen community identity and inspire giving.
Broaden participation in philanthropy by re-engaging first-time and lapsed donors and helping to develop the next generation of supporters.
The UK Giving Report 2026 does not suggest that generosity has disappeared. Rather, it points to a more conditional giving environment where support must be earned and sustained.
For trustees, the implications are clear:
While the pressures are real, so too is the opportunity. As CAF highlights through its findings, the public remains willing to engage; financially, socially and emotionally. The challenge for the sector is to convert that willingness into sustained, meaningful support. Organisations that build trust, demonstrate impact and foster genuine relationships will be best placed to thrive.
Review financial resilience
A softening in donation levels may not simply reflect wider economic pressures, it can also signal heightened scrutiny from both existing and prospective donors. Increasingly, donors are taking a closer look at how charities manage their financial resources, including their investment portfolios. Trustees should ensure that investments are subject to appropriate oversight and remain aligned with the charity’s objectives, liquidity needs and risk tolerance. Sustained underperformance or a lack of clear oversight may risk undermining donor confidence at a time when trust is paramount.
Demonstrate strong stewardship
At the same time, with donations under pressure, reserves are likely to need to work harder than ever. This makes it an opportune moment to revisit your investment policy and ensure it remains aligned with your charity’s objectives, liquidity needs, and risk tolerance in the current environment.
Improve transparency
Finally, trustees should consider whether their governance and reporting frameworks provide sufficient clarity and transparency. Being able to clearly articulate how capital is being managed, monitored, and aligned with the charity’s mission can be just as important as the returns themselves. A well-evidenced and proactive approach can strengthen internal decision-making and may help support confidence among existing and prospective supporters.
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