The incomes of charities in England and Wales rose by an average of 2.2 per cent last year, a report from the data provider Charity Financials shows.
The survey, which can be downloaded from the Charity Financials website, shows that between March and September this year the most recently reported incomes of registered charities in England and Wales rose by 2.2 per cent, or 1.3 per cent when adjusted for inflation.
Because charities have 10 months from their financial year-end to file their accounts, this will relate mostly to 2013 financial year-ends.
The report says that, over this period, the average reported rise for charities with annual incomes of less than £5m had been below the rate of inflation, whereas larger charities had seen real-terms rises in their income.
The report, which is based on data on the Charity Commission’s online register of charities, breaks down charities’ spending and income into categories.
It shows that charities with incomes of between £500,000 and £1m spent an average of 2.7 per cent of their income on governance, compared with 1.8 per cent for charities in the £1m to £5m annual incomes bracket, 1.1 per cent for those with incomes of between £5m and £10m, and less than 1 per cent for the largest charities.
Charities with incomes of more than £50m spent an average of 8.7 per cent of income across the two categories of trading to raise funds and generating voluntary income, a figure that reduced to 6.8 per cent for charities with incomes of between £50m and £10m, and 8.6 per cent for charities in the £5m to £10m category. Charities with incomes of between £1m and £5m used 7 per cent of their money on income generation, a figure that dropped to 6.1 per cent for charities with incomes between £500,000 and £1m.
Charitable expenditure ranged from 86.8 per cent of income at the smallest charities, to 89.2 per cent at charities with incomes of between £10m and £50m.
Charities in that smallest category brought in 43.8 per cent of their money through charitable activities, and 36.1 per cent did so through voluntary income.
These are the only charities where less than half of their income came from charitable activities. The charities least reliant on voluntary income were those in the £10m to £50m bracket, where charitable activities made up 63.8 per cent of income, and voluntary income accounted for 22.7 per cent.