This article explores charity leadership and donor giving from different perspectives, the Fundraising Regulator (the ‘Regulator’), Casework Insights and Trends: 2024-25 and the results of the CAF UK Giving Report 2025 and Charity Insights Report 2025, it considers how compliant fundraising and good charity reporting today can protect the income of tomorrow.
Key statistics
- 50% of people gave money to charity (a consistent downward trend from the 61% in 2016)
- Only 36% of 16-24 year olds donate to charity (down from 55% in 2016)
- Only 10% of those surveyed volunteered (down from 17% in 2016)
- As core costs rise only 12% would be happy to think of their donation being spent on the CEO’s salary, rising to 25% when considering broader administrative functions
- 77% of those surveyed think charities somewhat or very trustworthy
- 44% of charities cited increasing costs as a challenge (33% in 2024)
- 66% of charity leaders thought the sector was unhealthy with 83% ascribing that to financial pressures and funding cuts
- 75% of charity leaders were optimistic about their own charity
- 32% of charities say that the mix of restricted vs unrestricted funding makes it difficult to achieve their goals
- 70% of charity leaders time is spent on solving problems as opposed to strategy
- 9% increase in cases compared to the same period in 2024
- Only 19 reported cases came from self-reporting (31 in 2024) of which 3 were duplicated as the charity and agency both submitted reports
- Top causes for complaint were repeated contact and misleading information
Trust
From the Regulator’s perspective trust is damaged by poor fundraising behaviour, including misleading information and repeated or unwanted contact. Charity leaders feel that they are trusted (93% of charity leaders felt local charities were), and although the CAF insights report demonstrates that charity leaders overestimate the levels of trust in local organisations while underestimating trust in the international charities (compared with CAF World Giving Data), in the UK over three quarters of respondents considered charities somewhat or very trustworthy.
Economics
Increasing complaints, disengaged givers, with only 50% of respondents giving to charity and a decline to 36% in 16-24 year olds giving, means the outlook begins to look bleak; coupled with two thirds of charity leaders surveyed considering the sector unhealthy, mainly due to financial pressures and funding cuts. 44% of charity leaders cite increased costs as a challenge; and the need for unrestricted funding to support charity management conflicts with donor responses where only 25% would be happy to fund admin costs.
Although the giving report notes an increase in direct debit cancellations, direct debits and standing orders remain central to fundraising, accounting for just over 17% of the £15.4bn estimated by CAF as raised by the public. Fundraising websites, the charity’s own website, buying goods, and membership and subscriptions account for on average 11% each of the income raised.
Information and impact
One of the main causes of complaint is misleading information around the use of funds. The new statement of recommended practice for charities (SORP 2026) has brought impact reporting and sustainability front and centre. In the CAF insights report 88% of charity leaders surveyed consider that their mission is fairly clear to internal stakeholders, but only 41% thought that they communicate that impact fairly clearly. The Donor Insights part of the World Giving Report rated ‘knowing more about the results and impact that a charity has’, as the third most effective way for people to give more in the future, so it is clear that there is a gap to be addressed.
Conclusion and next steps
The challenge for charities is navigating the rather thin path between these internal and external needs and perspectives. Unrestricted funding, supporting management and direct action, enabling the charity to be judged on impact and outcomes not spend, is the goal of every charity and fundraiser and it is clearly the giving environment is becoming more demanding.
The SORP applies to periods starting on or after 1 January 2026, so the earliest annual reports it will apply to will be those for year’s ending 31 December 2026. Trustees and management should take time while completing their current period reports to think about outcomes, base-lines and KPIs that fit their mission and strategy ready for their future reporting. Where impact reporting is already completed, it may be worth a thought around how that data will fit with the annual financial statements.
The CAF reports give some advice and highlights for charities, policy makers and donors, and we would recommend that trustees consider these and some of the questions below to be confident in their current compliance and reporting as well as future strategy.
Are we confident the fundraising strategy is still appropriate?
- Type of campaign
- Application of the code of fundraising – culture and conduct
- Restricted/unrestricted funding
- Donor reliance
- Donor feedback
How transparent is our reporting?
- Strategy?
- Impact?
- Costs?
Does our reporting demonstrate success and successful learning?
Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key changes rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.
