Total income for charities in England and Wales increased by £6bn to more than £100bn in 2024, new figures show.
The Charity Commission’s annual return analysis for 2024 shows that total gross income reached £102bn in 2024 compared with £96bn in the previous year, while spending was up to £101bn, from £94bn.
The £1bn surplus for 2024 is an increase on the £701m difference recorded in 2023, which was a five-year sector low.
But the regulator acknowledged that the 2024 surplus remained below pre-pandemic levels.
Small charities, defined as those with an annual income of less than £500,000, reported an operating deficit of £290m in 2024, less than the £416.4m recorded in 2023.
Large charities, those with an income of more than £5m, represent 2.6 per cent of the sector but account for 75.2 per cent of its total income.
More than half of the sector (57 per cent) had a higher income than expenditure, but about two in five charities had costs exceeding their income while the remaining charities broke even, the analysis found.
A quarter of the charities with an income of £10,000 or less reported only breaking even, compared to less than 1 per cent for each of the other income bands.
David Holdsworth, chief executive of the Charity Commission, said: “Charities across England and Wales continue to make a huge impact and this analysis of charities’ annual returns underlines their significant social and economic contribution at a local, national and global level.
“But charity leaders up and down both countries continue to tell us they are under considerable financial pressures.
“This has an ongoing impact on their ability to deliver, which is felt keenly by the communities they serve.”
One of the most important things trustees can do is plan and act on any “early warning indicators” to help manage their finances while they have a range of options, Holdsworth said.
“We have guidance to help charities facing into challenging times,” he said.
Almost one-third of charity income (32 per cent) came from the £32bn received in donations and legacies, the analysis found.
Charitable activities generated about half of total charity income at £50bn, with a further £10bn coming from other trading activities.
More than half of charities with an income of £100,000 or more reported donations from a corporate donor, the analysis found.
Grantmakers awarded £17.8bn in grants, an increase on the £17bn awarded in 2023.
The majority of grants awarded in 2024 (£12bn) were given out to other charities.
A total of 110,756 charities were required to submit annual returns in 2024 and compliance rose to 97 per cent compared with 93 per cent in 2023.