Charity Donations Plummet by £1.4bn as Cost of Living Crisis Bites
A recent analysis by the Charities Aid Foundation (Caf) has uncovered a dramatic decline in charitable giving across the United Kingdom, with public donations falling by over £1.4bn in 2025. This significant drop highlights a growing trend where fewer Britons are contributing to good causes, driven largely by rising living costs and shifting societal attitudes.
Steep Decline in Donor Numbers and Contributions
The Caf annual report indicates that only half of the population donated to charity in 2025, a stark decrease from 61% a decade earlier. This reduction has led to a collapse in overall donations, which fell from £15.4bn to £14bn. The average size of charitable gifts also declined, dropping from £72 to £65, exacerbating the financial strain on the voluntary sector.
Mark Greer, managing director of Caf, emphasized that charity giving is no longer a deeply embedded cultural norm in the face of economic pressures and increased public scepticism. Charities can no longer depend solely on habitual generosity or goodwill from the public, he stated, pointing to a fundamental transformation in how society views philanthropy.
Affordability Emerges as Primary Barrier
Nearly half of people (49%) who did not give to charity in 2025 cited an inability to afford donations, up from 44% in 2024. This issue spans all income demographics, including those earning more than £125,000 annually. Philippa Cornish, Caf’s client relations director, noted, The decline in charitable donors over the past decade is stark. Giving is no longer a habit in this country.
The cost of living crisis has accelerated a longer-term contraction in the donor base, with Caf estimating that 6 million fewer people contributed last year compared to 2016. This trend could potentially shrink total voluntary sector income by approximately £12bn, posing severe challenges for organizations reliant on public support.
Impact on Major Charities and Sector Shifts
The consequences are already being felt across the voluntary sector, with even prominent charities like Macmillan Cancer Support, Samaritans, and Oxfam implementing substantial staff and budget cuts. Overseas aid charities have been particularly hard hit, with donor participation falling from 20% in 2016 to 11% in 2025, resulting in a £250m annual drop in donations.
In contrast, UK food banks have seen a surge in support, receiving £610m in 2025—surpassing donations to arts, culture, science, education, and homelessness causes. However, food banks report difficulties in securing regular donations, as supporters prioritize their own families during the economic downturn.
Broader Societal and Political Factors
Peter Grant, a philanthropy expert at Bayes Business School, linked the decline in giving to a more polarised society. Culture war attacks by right-wing politicians and media on organizations like the RNLI and the National Trust have undermined the wider legitimacy of charities among some donors, he explained. Additionally, years of government grant cuts have compounded the crisis, leading to reduced services and increased hardship for beneficiaries.
Kate Lee, chief executive of the National Council for Voluntary Organisations, expressed concern over the trend, warning that a continued decline could present serious challenges for many organizations, especially as demand for charitable support rises.
The Caf report, based on a nationally representative survey of nearly 13,000 UK adults, underscores the urgent need for the sector to adapt to changing donor behaviors and economic realities.
