UK charities brace for £300m Christmas donation slump
Children's charities alone are expected to see a decline of £100 million in donations
UK charities are bracing for a steep fall in festive giving this year, with donations expected to drop by £300 million, according to new analysis from the Charities Aid Foundation (CAF).
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The organisation has forecasted that contributions in November and December will total £2.9 billion, down from £3.2 billion last year, as average gifts fall from £85 to £78.
Children’s charities are set to be among the hardest hit, with funding projected to fall from £400 million to less than £300 million.
Homelessness charities could see a £40 million decline, reducing expected donations to around £150 million.
The slump comes as many charities struggle with rising costs and surging demand.
CAF’s latest Charity Insights report found that 44% of charity leaders cited increased costs as a major challenge, while 83% reported rising demand for services. Only 11% said they were managing to meet that demand smoothly.
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Ashling Cashmore, CAF’s Head of Impact and Advisory, said the fall in donations poses “a real concern for charities facing rising demand for their services and increased costs,” urging those who can to give generously or support in other ways such as volunteering.
The charity has also encouraged those who are able to give to make use of Gift Aid, donate quality household items, support local causes and contribute to food bank collections by dropping off items after doing a food shop.
Nicholas Connolly, CEO of youth homelessness charity EveryYouth, warned that the sector is facing “a perfect storm", saying: "This shortage of funding is made worse by spiralling costs.
"The combination of inflation and increased taxes on employment has significantly increased costs rapidly.
"There are no surpluses to plug the gaps and reserves are being decimated.
“Unless something quickly changes millions of people who rely on charities will see the rug pulled from beneath them.
"In our case thousands of young people could lose the help they need to overcome trauma, build employability and leave homelessness behind.”
LBC has approached the Charity Commission for a response.