Government funding to small charities

Overview

The public sector is the second-largest source of funding for small charities after the general public
Small charities received £1,982m from the public sector in 2017/18
Half of small charities receive no earned income from the public sector, but one-in-five received over half of their earned income from the public sector
Government income to small charities has declined in real terms over a five year period, but increased for those with an income over £100m.
Central government is the largest source of income for small charities, followed by local government.

In 2017/18, small and medium-sized charities received a total income of £1,982m from the public sector.
This is the second-highest source of income after the general public.
Small charities and medium-sized charities received 15% and 26% of their income from government.
Government income to small charities has declined in real terms over five years, from £2478.2m in 2013/14.

The picture is mixed – half of small charities received no earned income from the public sector
One-in-five small charities received over half of their earned income from the public sector, and one in ten 75% or more.

The majority of government income to small charities is in the form of contracts for services.
These were worth a total of £1,140.9m in 2017/18, compared to £841.6m in grants during the same period.
The proportion of government funding given as grants has increased slightly over the past five years.

Over the past five years, income from government has significantly declined for all charities, other than the very largest.
Medium-sized charities saw their income decline at the fastest rate

The majority of public investment in small charities comes from central government, with a similar level from local government.

Insights

Explore data on how small charities deliver services on behalf of the public sector

Insights

How do small charities raise voluntary income from the public sector and elsewhere?