This week, NCVO launched the 2024 UK Civil Society Almanac, offering the most detailed analysis of the voluntary sector’s financial health, workforce trends, and volunteer engagement.
The findings highlight a sector facing mounting challenges, with smaller charities disproportionately affected by funding pressures and systemic inequalities. Despite their essential role in communities, these organisations are increasingly forced to make difficult decisions about their survival.
The almanac provides more than just a snapshot of where the sector is today. By identifying the underlying trends, it equips us with the tools to anticipate challenges and respond effectively to ensure charities can continue their vital work.
Behind the statistics are stories of resilience, tough decisions, and, for many organisations, an uncertain future. Here are the key takeaways from this year’s findings and what they mean for the sector.
Small charities battle rising pressures
Smaller charities, with incomes under £1m, make up 80% of the sector and are often the first responders to community needs. Yet they are the most vulnerable to economic pressures.
Public donations, once a key lifeline, have dropped from 54% to just 25% of small charities’ income. This has left 73% of these organisations without a primary income source. Government funding is also skewed against them, with smaller charities receiving just 4% of total government support.
These funding imbalances are not new, but the scale of the current challenge is unprecedented. The almanac data helps us understand the pressures these charities face, enabling us to better advocate for fairer funding arrangements and support them in adapting to the financial constraints they encounter.
Without intervention, many small charities risk scaling back their work or closing entirely, leaving communities without critical services.
Challenges remain with workforce diversity
The voluntary sector employs nearly one million people, accounting for 3% of the UK workforce. Women make up 68% of this workforce, the highest proportion across all sectors, reflecting the sector’s long-standing appeal to those in caregiving and community-focused roles.
Encouragingly, ethnic diversity is improving, with workers from Global Majority backgrounds now making up 13% of the workforce, up from 9% in 2022.
However, this still lags behind the national average of 18%. Leadership roles remain particularly lacking in diversity, highlighting the need for targeted support to foster inclusivity at all levels.
At the same time, the sector faces an ageing workforce, with 28% of employees over 55 and just 6% under 25.
To thrive, the sector must address these gaps by creating accessible pathways for younger workers and ensuring leadership reflects the diversity of the communities that charities support.
A growing divide in the sector
The 2024 UK Civil Society Almanac reveals stark disparities between smaller and larger organisations, with just 4% of charities accounting for 96% of the sector’s income and spending.
Smaller charities are often closest to their communities and provide essential services, yet they receive just 4% of total government funding. Larger charities dominate in income, assets, and access to government grants and contracts, leaving smaller organisations struggling to compete.
The divide is not simply a matter of scale; it undermines the resilience and adaptability of the sector as a whole. Smaller charities bring local expertise, trust, and community-focused solutions that larger organisations often cannot replicate.
However, without fairer funding arrangements and more equitable access to resources, their ability to serve those in need will continue to erode.
Closing this gap is essential to creating a voluntary sector that is truly resilient, inclusive, and sustainable. Greater investment in smaller charities, alongside structural reforms to grant and contract processes, will be key to ensuring the survival of these vital organisations and the communities they support.
A roadmap for action
The 2024 UK Civil Society Almanac offers a reflection of the pressures facing the voluntary sector but also highlights its resilience and adaptability.
As economic pressures grow and new challenges emerge, charities are being forced to make increasingly difficult choices, from scaling back services to closing their doors entirely.
At NCVO, we use these insights to anticipate challenges and adapt our services to support the sector through uncertain times. From advocating for fairer funding structures to providing practical advice for charities of all sizes, we are committed to ensuring organisations have the tools they need to survive and thrive.
The almanac is not just a report – it is a roadmap for action. It informs how we prioritise our work, ensuring that smaller charities, which are often most at risk, receive tailored support and guidance.
By addressing inequalities in funding and access, fostering a more diverse and inclusive workforce, and championing the vital role of volunteers, we aim to strengthen the entire sector.
Charities are the backbone of a fairer and more equal society and protecting and strengthening them is not just a priority – it is essential to the wellbeing of communities across the UK.
With the right support, the sector will continue to adapt and evolve, delivering change where it is needed most.
