Charities, community groups, and non-profit organisations do amazing things for their communities every day.
From local, volunteer-run groups to national organisations with international reach, charities support people and invest in causes in a way that simply wouldn’t exist otherwise.
That said, running a charity does come with certain challenges.
Costs are rising. Demand is growing. Trustees are getting harder to recruit. And many charities are asked to do more, with less...leaving them with less time and resources to properly assess their risks.
So, what does the UK charity sector actually look like in 2026? And what does that mean for the good work that charities do?
Want to know more about which types of insurance will benefit your organisation the most? Take a good look round our charity and not-for-profit insurance hub.
How many charities are there in the UK?
The UK’s charity sector is huge. And it’s growing every day.
According to the Charity Commission’s online sector review, which is updated daily, there are approximately:
- 171,400 registered charities
- 13,805 linked charities (AKA charities that share trustees or structures with another organisation)
- 185,293 registered charities in total in the UK.
However, this is likely just a small part of a much larger picture. The true size of the UK charity sector is unknown.
Only not-for-profits with a gross annual income of £5,000 or more are required to register with the Charity Commission. Meaning there are plenty more small, unregistered groups quietly supporting their communities year-on-year – from volunteer-run food projects to local sports clubs and faith groups.
Plus, there may be as many as 20,000 organisations that aren't generally regarded as charities that also have charitable status – like private schools, churches, and museums.
What does this say about the current state of the UK charity sector?
2025 saw a small but steady increase in the number of charities applying for registration compared to 2024. With 9,836 applications made (and 9,008 in 2024).
At the same time, the number of charity closures also increased: 4,233 charities left the Charity Commission’s register in 2025 (compared to 3,885 in 2024).
However, new charities are forming all the time and their income is rising year-by-year – with a 10% rise in overall charity sector income in 2025.
That tells us something important: that the charity sector is still growing in the UK. And that communities still step up where there's a need.
UK charity sector statistics & key facts:
- As of May 2026, the UK has 171,387 registered charities. And a charity sector made up of 1,717,635 employees, 6,537,728 volunteers, and 921,512 trustees.
- The Charity Commission received 9,836 charity applications in 2024/25. At the same time, 4,233 charities were removed from their register.
- The total income of registered charities in 2024/25 was £102bn, while total charity spending came in at £101bn.
- Micro charities and small charities (defined by an income less than £10,000, and £10,000 to £100,000 respectively) make up around three-quarters of the UK charity sector.
- In contrast, major and super-major organisations (income over £10 million) make up less than 1%.
- The voluntary sector alone contributed approximately £69.1bn to the UK economy in 2021/22.
- Social services make up the UK’s largest voluntary subsector, accounting for around a fifth (19%) of all organisations and almost a quarter (23%) of total charity income. The subsector also contributes the most to the UK’s economy – around £3.4bn per year.
How much income do UK charities make?
In 2024/25, the total income of UK-registered charities was £102bn (up from £96bn in 2023/24). In May 2026, however, this figure is closer to £107bn.
According to the UK Civil Society, volunteer organisations contribute around £69.1bn to the UK economy each year, accounting for almost half (46%) of all charity income. Around one fifth of this income (21%) is made up of public donations. Then government grants (8%) and funding from other organisations (7%).
Behind these numbers are thousands of carefully balanced budgets, thoughtful funding decisions, and people trying to make resources stretch as far as possible.
As economic uncertainties persist, balancing income with spending is as important for charities as ever.
Despite the gap between charity income and spending narrowing slightly, total spending remained high in 2025 at £101 billion (up from £94 billion in 2024).
Margins remain tight, however, especially for smaller organisations. Many charities are finding they have to spend around 95% of their income to keep doing the good work they do.
The UK's biggest charities
The UK's biggest charities (with incomes over £10m) represent less than 1% of the charity sector. Yet they do vital work – making up around 66% of all charity income.
The largest charities in the UK (by income) in 2026:
- Nuffield Health (1.45bn)
- The Charities Aid Foundation (1.39bn)
- Save the Children International (1.1bn)
- The British Council (£1bn)
- The Arts Council of England (£843m)
- United Learning Ltd (£786m)
- The National Trust (£766m)
- Cancer Research UK (£735m)
- Lloyd’s Register Foundation (£692m)
- Cardiff University (£635m)
Charities as large as this often rely on large gifts from wealthy donors. And the good news is that people are giving more generously than ever.
High-value giving increased by 21% between 2024-2025, with the average amount donated higher than it’s ever been in the last five years.
The UK's most popular charities
When it comes to public support, a charity’s income doesn’t always tell the full story.
A YouGov poll revealed the UK’s most popular charities in 2026:
- Macmillan Cancer Support (88%)
- Cancer Research UK (85%)
- St. John Ambulance (81%)
- British Heart Foundation (81%)
- Samaritans (80%)
- Prostate Cancer UK (80%)
- RNLI Lifeboats (79%)
- WWF (79%)
- Great Ormond Street Hospital (78%)
- Alzheimer’s Society (76%)
- RSPCA (76%)
- Guide Dogs (76%)
It's clear that the UK public thinks positively of lot of different charities, but especially ones supporting the health and wellbeing of humans and animals. Or that fund research into serious and life-changing diseases like cancer and Alzheimer's.
Overall, charities are seen well in the UK. According to the Charity Commission’s annual report, 70% of people believe the charities they donate to are making a real difference. And 66% think they operate to high ethical standards.
That support is hugely valuable and is something charities work hard to protect. Especially as reputational damage, data breaches or legal disputes can undermine it quickly if they’re not prepared.
What causes do small charities support?
Small and micro-charities (AKA whose income is below £100k) make up roughly three quarters of the UK's charity sector. These organisations rely heavily on their volunteers. And their impact on local communities is huge.
According to UK small charity statistics gathered by the National Council for Voluntary Organisations (NCVO), the most common small charity causes in 2021/22 were:
- Social services (19% of organisations)
- Cultural and recreational services (15%)
- Religion (10%)
- Grant-making foundations (7%)
- Parent-teacher associations (7%).
Village halls, youth clubs, and scout groups also featured further down the list. They made up a combined 12% of voluntary organisations in the UK.
These small charities are often the first place people turn to when they need help. However, they also feel pressures more sharply than larger organisations – whether that’s because of cash flow or compliance issues, cyber risks or problems resulting from their trustees’ personal liabilities.
Recruitment in the UK charity sector
Volunteering levels are still recovering after the pandemic years, and trustee recruitment remains a challenge. That means trustees and managers often carry a lot of responsibility.
Some key facts about the UK charity workforce:
- Statistics from the Charity Commission, from May 2025, show that 1,717,635 people were employed by a charity.
- There were also over 921,512 trustee positions at registered charities in the UK and 6,537,728 volunteers – a dip on previous years.
- Figures gathered by the UK Civil Society show that around 978,000 people were working in the voluntary sector in 2024. That’s about 3% of the UK’s workforce.
- Between 2011 and 2024, the voluntary sector workforce grew by 30%. Unfortunately, it’s also slightly shrunk since 2023, despite steadily growing in the past.
- As of 2026, the UK’s biggest charity employers are Second Chance Headway Centre (484,577 employees) and Brixton House (65,170 employees).
- More than half (53%) of voluntary sector employees work for smaller charities (AKA ones with fewer than 50 employees).
- 84% of charity workers are based in England, which is equal to the country’s share of the UK population. This is followed by Scotland at 10%, Wales at 3%, and Northern Ireland at 2%.
- In England, 41% of the voluntary sector workforce is based in London and the south.
- Four in ten volunteers work remotely or in hybrid roles. This accounts for about 39% of the UK’s volunteer workforce.
- Women are more likely than men to work for charities. They make up 68% of the workforce.
- 39% of people employed in the voluntary sector are social workers.
The geographical breakdown of the voluntary sector workforce across the UK in 2024 is:
- East – 17%
- London – 16%
- Scotland – 10%
- South West – 9%
- East of England – 9%
- North West – 8%
- West Midlands – 8%
- Yorkshire and the Humber – 8%
- East Midlands – 6%
- Wales – 3%
- North East – 3%
- Northern Ireland – 2%
Where are UK charities based?
Of the 170,056 charities registered in the UK in 2024, the geographical breakdown was:
- 80% in England
- 12% in Scotland
- 4% in Wales
- 4% in Northern Ireland
Scotland had the highest number of registered smaller charities per 1,000 people in the population at 3.6. Wales had the lowest at 2.3 per 1,000 people.
According to the latest UK charity sector statistics, larger charity organisations are more likely to be active nationally and internationally. Most of these are based in London and the south.
Smaller charities tend to be local, often working within the country or area they’re based. That local focus is powerful – but it also means risks are very real and personal. A slipped step at a fundraiser, a damaged laptop, a lost data file...these aren’t abstract problems when you know the people involved.
Mind the digital gap
Having seen a period of huge digital acceleration, shifts in working models, and the streamlining of operations post-pandemic, many UK charities have had to invest heavily in their digital services.
It’s easy to take for granted that online fundraising, remote meetings and keeping digital records is the new normal for UK charities.
But the gap between large and small charities remains wide, especially when you consider that smaller charities are more likely to struggle to secure investment.
74% of charities say digital is a medium or high priority for them. But while digital awareness among charities is higher than in previous years, 68% of small charities are still at the early stages of their digital journey and just over a third (34%) say they are advancing with digital.
In addition, over a third (35%) of charities confess to being poor at online fundraising. And 27% say they don’t do any online fundraising at all...
In the meantime, the charity sector faces many new and fast-evolving cyber risks.
76% of charities now use AI tools. And with more data held online – including details about staff, volunteers and donors – understanding the rules around data privacy and how to manage their cyber risks is more important now than ever.
69% of charities report strained finances as the reason they’ve been unable to progress digitally.
And just 44% say they have a clear digital strategy to help them manage their cyber risks (compared to 50% in previous years).
This may well start to change in the new future, however, with half (49%) of charities saying developing their strategy for digital, data, and AI is a priority for them.
Generously protected
Charities of all shapes and sizes need specialist insurance to protect them from risk. Just because you’re doing something good doesn’t mean others won’t point the finger of blame if something goes wrong.
What kind of cover suits any organisation best will depend on whether they're a charity, club, or community group. Also, what their purpose is, including if they offer a service or advice.
Public liability insurance covers events, fundraisers, and meetings in case of injury to anyone attending or damage to property. Employers’ liability insurance for charities is the only cover required legally and protects an organisation’s staff and volunteers. Trustees’ insurance protects trustees.
Contents and portable equipment insurance covers loss of or damage to kit, big or small. And professional indemnity insurance deals with claims an organisation’s service was sub-standard.
Charity cyber insurance provides technical expertise, plus legal, PR, and financial help if an organisation is targeted by cybercriminals. It also deals with data breaches – which is important when almost a third of charities confess to being targeted by one.
Expert help you can rely on
If you’re not sure where to start with charity insurance, that’s normal. Most charities we speak to feel the same way.
You don’t need to have all the answers. You just need someone who’ll take the time to understand what you do, and help you protect it properly.
Our charity and not-for-profit insurance hub has plenty of help and advice you can read through. Or you can give our friendly team a call on 0345 222 5391.
Image used under license from iStock.
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