Welsh charities have an average income per head of population that is only just over half that of their English counterparts, according to data from the Wales Council for Voluntary Action.
New figures from the umbrella body’s Third Sector Data Hub, an online resource set up to demonstrate the impact of the voluntary sector’s work in Wales, show that charitable income per capita in the country was £386 in 2016/17, compared with £767 for England.
The average income for charities per head of population in the UK was £734, the WCVA said.
A spokesman for the WCVA said that the organisation wanted to carry out more research to see why there was such a large gap between Welsh and English charities.
But he said that relatively high levels of poverty in Wales compared with other parts of the UK could affect individual giving and the relatively small number of large companies in Wales might affect donations from the private sector.
The total income for Welsh charities increased slightly in 2016/17, the WCVA said today, rising from £1.1bn to £1.2bn.
Previous research from the WCVA showed that Welsh charities accounted for just £1bn of the UK charity sector’s £45bn value.
Grant funding in Wales has increased from £248m to £257m, today’s figures show, although the WCVA said that this was still well below the £350m in grants Welsh charities received in 2010/11.
The value of contracts from the Welsh government to Welsh charities to provide public services fell from £71.5m to £42.4m between 2014/15 and 2016/17, the WCVA said.
But funding from alternative sources increased from £382.2m to £416.1m, according to the WCVA.
Ruth Marks, chief executive of the WCVA, said: "The third sector in Wales continues to operate at a disadvantage compared with the rest of the UK.
"Austerity has seen a sharp reduction in government funding in recent years. Efforts made by charities against this backdrop are outstanding; without these organisations many Welsh communities would now be facing deeper crises.
"We urge third sector organisations to continue to explore every avenue possible to generate and diversify income."