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Charities in the UK - Market Research Report (2015-2030)

Oliver Parmar Oliver Parmar London, United Kingdom Last Updated: November 2025 SIC SP0.191

Revenue

£87.3bn

2025-26

£87.3bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

1m

Businesses

173k

Wages

£XX.Xbn

Charities in the UK industry analysis

Charities’ revenue is expected to rise at a compound annual rate of 5% over the five years through 2025-26 to £87.3 billion. Funding for charities isn't distributed evenly. The UK Shared Prosperity Fund has provided some financial support for the industry, with £2.6 billion allocated from April 2022 to March 2025 and an additional £900 million offered for 2025-26. However, funding has favoured bigger charities, with many small or micro organisations struggling to win bids in a highly competitive market. Parallel to this, in the two years through 2023-24, declining real disposable income and consumer confidence amid the cost-of-living crisis squeezed people's pockets hitting charitable donations. Rising inflation in 2025-26 is further limiting disposable income and reducing the number of people donating. However, those that are donating are giving more, which is set to support a 4.2% hike in revenue in 2025-26.

Trends and Insights

  • Scandals hit major charities’ reputations. A series of scandals involving well-known charities like the Captain Tom Foundation dented consumers’ confidence in these organisations.
  • Charities contend with fluctuating individual donations. The turbulent economic climate, amplified by the cost-of-living squeeze and high inflation, is discouraging people from giving their money away.
  • London holds a huge number of charities. Organisations in the capital thrive on the region's vast wealth and distinct inequalities. At the same time, London's international financial status brings in donations from multinational corporations looking to boost their image.
  • Charities vie for funding sources. They strive to maintain an impeccable public image and demonstrate efficient fund usage to attract voluntary donations and government support.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 5.0 % over the past five years, to reach an estimated £87.3bn in 2025.

Trends and Insights

Funding for charities isn't evenly distributed

  • As a result of Brexit, European Structural Funding ended in March 2022, but the UK Shared Prosperity Fund was launched in April 2022 to replace it. £2.6 billion was made available until the end of March 2025 to support funding for social programmes, providing help to UK charities through grants, business advice and mentoring. According to the UK government, the UKSPF enabled over 19,000 enterprises and 19,000 individuals to receive business and skills support, created more than 1,400 jobs and helped over 5,200 people progress into employment or training. The UKSPF has been extended through 2025-26, with an additional £900 million in funding to support the extension of service.
  • Additional trends and insights available with purchase
Charities in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The Better Futures Fund supports charities’ income

  • The Better Futures Fund (BFF), launched by the UK government in July 2025, is a £500 million initiative that aims to support up to 200,000 vulnerable children and their families over the following 10 years. The fund’s goals are to break down barriers to opportunity, boost pupil achievement, reduce reoffending and provide specialist support for children facing challenges like school exclusion, mental health issues and risk of crime.

Biggest companies in the Charities in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
Cancer Research UK
710.2
Oxfam
420.9
Barnardo's
360.2

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Charities in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Social services, Education and research and Religion. Social services is the largest segment of the Charities in the UK.

Trends and Insights

Cost-of-living pressures mean social service charities are in demand

  • These charities offer support to young, old or vulnerable people; emergency and relief services, such as lifeboat organisations; homeless shelters; refugee assistance and foodbanks.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry includes organisations that meet the National Council for Voluntary Organisations’ definition of general charities. These are defined as non-profit organisations with a meaningful degree of voluntary participation and whose aims are in the public benefit. broader civil society organisations, such as places of worship, independent schools, housing associations and government bodies, aren't considered part of the industry

What's included in this industry?

Products and services covered in the Charities industry in the United Kingdom include Social services, Education and research, Religion, Development and housing, Culture and recreation, Healthcare and medical, International aid and Environment, conservation and animal welfare.

Companies

Companies covered in the Charities industry in the United Kingdom include Cancer Research UK, Oxfam and Barnardo's.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Charities industry in the United Kingdom include legacy, ncvo and non-profit organisation.

Industry Code

SIC 2007

SIC 85.42/1 - Charities in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Scandals hit major charities’ reputations. A series of scandals involving well-known charities like the Captain Tom Foundation dented consumers’ confidence in these organisat...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Charities contend with fluctuating individual donations. The turbulent economic climate, amplified by the cost-of-living squeeze and high inflation, is discouraging people fr...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London holds a huge number of charities. Organisations in the capital thrive on the region's vast wealth and distinct inequalities. At the same time, London's international f...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Charities vie for funding sources. They strive to maintain an impeccable public image and demonstrate efficient fund usage to attract voluntary donations and government suppo...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There’s a huge number of charities in the UK. They come in all different shapes and sizes and are needed to fund a huge variety of causes, keeping the market highly fragmente...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Cancer Research UK's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Oxfam's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Barnardo's's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Cancer Research UK, and factors influencing its performance in the industry
  • Description and key data for Oxfam, and factors influencing its performance in the industry
  • Description and key data for Barnardo's, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Regulations steer charities' operations. They have to make sure they’re registered with their regional charity regulator, adhere to standards for their accounting practices a...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Charities don’t operate in pursuit of profit. Any surplus they generate is invested back into their social endeavours, ensuring their operations continue to focus on their mi...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Charities industry in the United Kingdom in 2025?

The market size of the Charities industry in the United Kingdom is £87.3bn in 2025.

How many businesses are there in the Charities industry in the United Kingdom in 2025?

There are 173k businesses in the Charities industry in the United Kingdom, which has grown at a CAGR of 2.0 % between 2020 and 2025.

How may import tariffs affect the Charities industry in the United Kingdom?

The Charities industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Charities industry in the United Kingdom?

The Charities industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Charities industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Charities industry in the United Kingdom has been growing at a CAGR of 5.0 % between 2020 and 2025.

What is the forecast growth of the Charities industry in the United Kingdom over the next 5 years?

Over the next five years, the Charities industry in the United Kingdom is expected to grow.

What are the biggest companies in the Charities industry in the United Kingdom?

The biggest companies operating in the Charities industry in the United Kingdom are Cancer Research UK, Oxfam and Barnardo's

What does the Charities industry in the United Kingdom include?

Social services and Education and research are part of the Charities industry in the United Kingdom.

Which companies have the highest market share in the Charities industry in the United Kingdom?

The company holding the most market share in the Charities industry in the United Kingdom is Cancer Research UK.

How competitive is the Charities industry in the United Kingdom?

The level of competition is high and increasing in the Charities industry in the United Kingdom.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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