An illustrated diagram of charity income streams including grants, donations, legacies and trading

Fundraising is how charities generate the income they need to pursue their charitable purposes. In the UK, charities draw on a wide range of income streams — including grants from trusts and government, donations from individuals, corporate partnerships, trading activities, events and gifts in Wills. Total UK voluntary sector income reached £69.1 billion in 2021/22, according to the NCVO UK Civil Society Almanac 2024. Understanding these streams — and the rules that govern them — is essential for anyone working in or alongside the sector.

The main income streams for UK charities

UK charities rarely rely on a single source of income. The NCVO Almanac finds that the public provides roughly 48% of the sector's total income (including donations, legacies and trading), with government contributing around 26% through grants and service contracts. The remaining income comes from investments and other sources.

Individual giving

Direct donations from members of the public are the most visible form of fundraising. The Charities Aid Foundation (CAF) UK Giving Report 2024 found that total charitable giving reached £15.4 billion in 2024. However, the proportion of people donating has fallen: around 50% of UK adults gave to charity in 2024, compared with 58% in 2019. Donors who do give are contributing more — an average of £72 per month in 2024 — suggesting that the donor base is narrowing even as headline totals hold up.

Individual giving takes many forms: one-off cash gifts, regular direct debits, text donations, online giving platforms, sponsored events and payroll giving. Gift Aid, the UK government scheme allowing charities to reclaim basic-rate income tax on donations from qualifying taxpayers, adds 25p to every £1 donated, making it a significant revenue lever for charities with the right infrastructure.

Grants from trusts, foundations and government

Grants — non-repayable awards made for a specific purpose — come from charitable trusts and foundations, central government, local authorities, the National Lottery Community Fund and devolved funding bodies. Grantmaking by UK trusts and foundations increased by 12% to £8.2 billion in 2023/24, according to UKGrantmaking. Government grants and contracts add a further substantial layer of statutory income.

Grants are often categorised as either restricted (tied to a defined project or purpose) or unrestricted (available for any charitable use). This distinction has significant implications for how charities plan and report — see our guide to restricted vs unrestricted funding for more detail.

Corporate partnerships

Corporate income includes cash donations, cause-related marketing, employee fundraising, payroll giving, pro-bono support and gifts in kind. Total UK corporate giving reached £4.26 billion in 2024, according to the CAF Corporate Giving Report 2025, though cash giving fell by an estimated £300 million as businesses shifted towards in-kind and volunteering contributions. FTSE 100 companies accounted for nearly half of total corporate giving (£1.82 billion), but only 24 met the benchmark of donating at least 1% of pre-tax profits.

Trading and earned income

Many charities generate income through commercial activities that further — or at least do not undermine — their charitable purposes. This includes charity shops, cafés, venue hire, publications, consultancy and fee-for-service contracts. The NCVO Almanac notes that voluntary and earned income were almost equally split in 2021/22 (46% and 45% of total income respectively), reflecting how significant trading has become as a funding stream.

Fundraising events

Sponsored runs, galas, auctions and community events are a long-standing part of the fundraising mix. Events generate direct income from entry fees, ticket sales and sponsorship, while also raising profile and acquiring new donors. They require careful cost management: the net return after venue, staffing and logistics costs can vary considerably.

Legacies (gifts in Wills)

Legacies — charitable bequests left in a Will — have become an increasingly important income stream. UK legacy income reached £4.5 billion in 2024, a 9% increase on the previous year, with 145,000 charitable bequests recorded — the highest figure on record, according to Legacy Futures. The market is forecast to reach £5.1 billion by 2030 and £10.2 billion by 2050. Residual gifts (a share of an estate after other bequests) average around £65,000, making legacies among the highest-value gifts a charity can receive.

The regulatory framework: the Fundraising Regulator and the Code of Fundraising Practice

Fundraising in the UK is overseen by the Fundraising Regulator, an independent body established in 2016 following public concern about aggressive fundraising practices. It handles complaints from the public, investigates breaches and maintains the Code of Fundraising Practice — the rulebook that all charitable institutions and third-party fundraisers operating in the UK must follow.

A revised Code came into effect on 1 November 2025, representing the most significant update since the regulator's founding. The new Code takes a principles-based approach rather than a detailed rulebook, requiring organisations to demonstrate that their fundraising decisions are appropriate and proportionate. Core expectations include that fundraising must be legal, open, honest and respectful. Key changes in the 2025 Code include new duties on charities to protect fundraisers from harm and harassment, and new transparency requirements for fundraising platforms around fees and tips.

Registration with the Fundraising Regulator is voluntary for most charities, but the Code applies regardless of registration status — the regulator will consider complaints about any organisation fundraising in the UK.

The Charity Commission for England and Wales provides an additional layer of governance, setting expectations for trustees around fundraising oversight, and OSCR and the Charity Commission for Northern Ireland perform equivalent roles in Scotland and Northern Ireland respectively.

Frequently asked questions

What is the difference between fundraising and grant management?

Fundraising refers to the broad activity of generating income for a charity, including soliciting donations, writing grant applications, running events and building corporate relationships. Grant management is a more specific discipline: the structured process of administering grants once awarded — tracking conditions, reporting to funders and managing the grant lifecycle. See our guide to grant management for a full explanation.

Do all charities need to register with the Fundraising Regulator?

Registration is voluntary for most organisations, though charities spending over £100,000 per year on fundraising are strongly encouraged to register and display the Fundraising Badge. Critically, the Code of Fundraising Practice applies to all UK fundraising activity regardless of registration status, and the regulator will investigate complaints about any organisation.

Is online fundraising covered by the Code of Fundraising Practice?

Yes. The Code covers all fundraising methods, including digital channels — social media appeals, crowdfunding, email campaigns and peer-to-peer fundraising platforms. The 2025 Code introduced specific requirements for fundraising platforms to disclose fees clearly and to make it straightforward for donors to adjust or remove voluntary tips added at checkout.

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Published by the Plinth Team. Last updated 21 February 2026.

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