Sector income reached £77.4bn in 2017/18

The figures in Charity Financials' Charity Income Spotlight are based on recorded income from 158,000 charities in England and Wales

Income across the charity sector has hit £77.4bn in the 2017/18 financial year, new research from the financial reporting firm Charity Financials has found.

The figures in the Charity Income Spotlight report are based on recorded income from almost 158,000 charities registered in England and Wales.

Charity Financials found that income grew by 5.8 per cent from the previous financial year, when growth reached a 10-year low of 4.4 per cent.

But annual growth is still a long way from the 9.6 per cent recorded in 2013/14, the report says.

This means that overall income in the charity sector has risen by 75 per cent over the past decade.

The 0.1 per cent of charities earning more than £50m a year had a third of the entire sector’s income, the research found, and increased their annual income by a combined £2.9bn.

The 71 per cent of charities earning less than £100,000 a year accounted for just 3 per cent of income for the sector as a whole.

More than half of all income was generated through charitable activities, the research found, and voluntary donations made up 30 per cent.

The growth in income reflects recent research, including some by Third Sector, that shows a steady year-on-year increase in earnings across the sector.

Third Sector’s research, based on the 155 biggest charity brands showed that income for 2018 rose from £11.4bn to £11.7bn, with spending increasing at a similar rate.

The National Council for Voluntary Organisations’ annual UK Civil Society Almanac also shows that income has risen to an all-time high, albeit of £47.8bn.

The almanac for 2019 covers the 2015/16 financial year and excludes some charitable organisations such as universities, housing associations, places of worship and independent schools.

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