The Annual Return 2022 has recently been published by the Charity Commission and it highlights several key trends through combined sector data for financial years ending in 2022.
The total gross income reported by all charities that submitted an annual return increased by 8.48% in comparison to 2021, reaching a staggering £90.3 billion. Simultaneously, the total gross expenditure grew by 9.19%, amounting to £87.4 billion.
For approximately 12,000 charities with an annual income exceeding £500,000, the data suggests that this growth was primarily fueled by a 38% increase in fundraising income – a surge likely influenced by the easing of COVID restrictions. However, for those charities with an income below £500,000, the picture was different: they observed a more modest 3.24% increase in income, while their expenditure rose by a substantial 11.6%.
Notably, smaller charities faced challenges related to government grants. Income from local or national government grants across all charities declined from £8.2 billion in 2021 to £7 billion in 2022. Additionally, the number of charities receiving such grants decreased by 24%, falling from 35,474 in 2021 to 27,001 in 2022.
Approximately 6,500 charities provided services through government contracts in 2022, with a total value of £9.3 billion. This upward trend has persisted for the fourth consecutive year, representing a 25% increase from the reported value of £7.4 billion in annual returns for 2018.
Furthermore, more charities than ever before reported on reserve levels (triggered when their income exceeds £500,000). However, reserves remained consistent with 2021 figures, totaling £75 billion for the sector, compared to £73 billion in 2021.
Volunteer numbers reported an overall increase, but significant variations were observed across different sectors. Education, environment, conservation, and heritage charities reported substantial growth in volunteer figures. However, religious charities, those providing front-line services, and those supporting armed forces personnel experienced a decline in volunteer participation compared to 2021.
