Charity Funding 2013 KeyNote

Market Assessment 2013
Fifth Edition July 2013

Edited by Leah Tutt
ISBN 978-1-78304-027-8
Charity Funding
Charity Funding
Foreword
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Key Note Ltd 2013
Charity Funding
Contents
Contents
Executive Summary
1. Introduction
REPORT FOCUS.............................................................................................................................3
DEFINITION....................................................................................................................................5
2. Strategic Overview
FACTORS AFFECTING THE MARKET......................................................................................6

Legislative Changes.......................................................................................................................6
Charities Act 2011..........................................................................................................................6
Small Charitable Donations Act 2012........................................................................................9
Charities Act 2006 Review..........................................................................................................12
Economic Pressures......................................................................................................................14
MARKET DYNAMICS AND SEGMENTATION.....................................................................15

Market Sectors..............................................................................................................................15
Total Industry Value and Growth.............................................................................................15
Table 2.1: Income of Registered Main Charities in England
and Wales (number, m and %), June 2011 and 2012.........................................................16
Table 2.2: Number of Registered Main Charities and Large Charities in England
and Wales (number, bn and %), Years Ending 31st December 2008-2012....................17
Table 2.3: Voluntary Income of UK Charities by Cause by Value (bn), May 2013........18
DISTRIBUTION.............................................................................................................................18
Table 2.4: Source of Charitable Income by Type
(m at April 2011 prices and %), 2010/2011...........................................................................19
COMPETITIVE STRUCTURE......................................................................................................20
Table 2.5: The Top 25 Charities in England and Wales by Total Income (), Years
Ending May 2011-2013...............................................................................................................21
Table 2.6: Number of Charities and Total Charitable Income
by Type of Cause (number, m and %), 2010/2011..............................................................22
ADVERTISING..............................................................................................................................23
Main Media Advertising Expenditure......................................................................................23
Table 2.7: Main Media Advertising Expenditure on UK Charities by Sector
(000 and %), Years Ending March 2012 and 2013..............................................................24
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Charity Funding
Contents
Table 2.8: Main Media Advertising Expenditure of Charities

with Expenditure Exceeding 1m (000), Years Ending March 2012 and 2013..............25
Awards...........................................................................................................................................26
The Responsible Business Awards ............................................................................................26
The Charity Awards.....................................................................................................................27
The Charity Times Awards..........................................................................................................28
Dods Charity Champion Awards ..............................................................................................29
The Queens Awards for Voluntary Service............................................................................30
The Third Excellence Awards.....................................................................................................30
ASSOCIATIONS AND UMBRELLA ORGANISATIONS.......................................................31

Association of Charitable Foundations....................................................................................31
Association of Chief Executives of Voluntary Organisations..............................................32
Association of Fundraising Consultants..................................................................................32
Charities Aid Foundation............................................................................................................32
Charity Commission.....................................................................................................................32
Charity Finance Directors Group..............................................................................................33
Directory of Social Change.........................................................................................................33
Disasters Emergency Committee...............................................................................................33
The Fundraising Standards Board.............................................................................................34
The Institute of Fundraising......................................................................................................34
National Association for Voluntary and Community Action..............................................34
National Council for Voluntary Organisations.......................................................................35
UK Community Foundations .....................................................................................................35
FORECASTS..................................................................................................................................35
Table 2.9: Forecast Income of Registered Main Charities in England and Wales
by Income Bracket (m), Years Ending June 2013-2017.......................................................36
3. Fundraising Charities
38
BACKGROUND............................................................................................................................38
BENEFITS TO DONORS AND CHARITIES.............................................................................39
Capital Gains Tax..........................................................................................................................39
Other Tax Relief...........................................................................................................................40
Gift Aid...........................................................................................................................................40
MARKET SIZE...............................................................................................................................41
Fundraising....................................................................................................................................41
Total Charitable Income from Individual Donors..................................................................41
Table 3.1: Total Amounts Donated by Individuals
to Charities (bn), 2007/2008-2011/2012.................................................................................41
Average Amounts Donated per Person...................................................................................42
Table 3.2: Median and Mean Amounts Given to Charity
per Donor per Month (), 2007/2008-2011/2012...................................................................43
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Contents
Top 20 UK Charities by Voluntary Income..............................................................................44

Table 3.3: The Top 20 Charities in the UK by Voluntary Income and Total Income
(000 and %), June 2013............................................................................................................44
Sources of Income in the Voluntary Sector by Subsector....................................................45
Table 3.4: Income Sources by Subsector (% of total income), 2010/2011........................46
Volunteering.................................................................................................................................47
Table 3.5: Total UK Voluntary Sector Paid Workforce
(number and %), 2007-2011......................................................................................................48
Figure 3.3: Total UK Voluntary Sector Paid Workforce
(number and %), 2007-2011......................................................................................................48
CONSUMER RESEARCH............................................................................................................49
Fundraising....................................................................................................................................49
Donating........................................................................................................................................49
Table 3.6: Proportion of Adults That Have Donated to Charity
in the Last 12 Months (% of adults), 2010-2012....................................................................49
Table 3.7: Proportion of Adults Donating to Charity by Size of Donation in the Last
12 Months (% of adults), 2012..................................................................................................51
Table 3.8: Proportion of Adults Donating to Charity by Payment Method Used
in the Last 12 Months (% of adults), 2012..............................................................................53
Table 3.9: Proportion of Adults Donating to Charity by Motivation in the Last
12 Months (% of adults), 2012..................................................................................................55
Volunteering.................................................................................................................................57
Proportion of Volunteers in England.......................................................................................57
Table 3.10: Percentage of People Who Had Engaged in Informal and Formal
Volunteering At Least Once a Month or At Least Once in Last Year
(% of respondents), 2007/2008-2012/2013.............................................................................58
Table 3.11: Participation in Formal Volunteer Work in the Past 12 Months by Sex,
Age and Region (% of respondents), 2012/2013...................................................................59
Volunteering Activities...............................................................................................................60
Table 3.12: Formal Volunteering Activities Undertaken
at Least Once a Month in the Last 12 Months (% of respondents), 2008/2009..............60
Table 3.13: Informal Volunteering Activities Undertaken at Least Once a Month
in the Last 12 Months (% of respondents), 2008/2009.........................................................62
Types of Organisations Helped.................................................................................................62
Table 3.14: Types of Organisations Helped by Regular Formal Volunteers
(% of respondents), 2008/2009.................................................................................................63
Sources of Information for Formal Volunteers......................................................................64
Table 3.15: Most Common Sources of Information for Regular Formal Volunteers
(% of respondents), 2008/2009.................................................................................................64
Motivation.....................................................................................................................................65
Table 3.16: Motivation for Volunteering for Regular Formal Volunteers
(% of respondents), 2007/2008.................................................................................................65
MARKETING ACTIVITY.............................................................................................................66
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Charity Funding
4. Grant-Making Trusts
Contents
69
BACKGROUND............................................................................................................................69
MARKET SIZE...............................................................................................................................70
Table 4.1: Voluntary Sector Expenditure on Grants (m), 2006/2007-2010/2011............70
Figure 4.1: Voluntary Sector Expenditure on Grants (m), 2006/2007-2010/2011..........70
Table 4.2: The Top 20 Charities in the UK by Grant-Making Expenditure (),
2011................................................................................................................................................71
Table 4.3: The Top 20 UK Charities by Proportional Spending
on Grant-Making ( and %), 2011............................................................................................72
CONSUMER TRENDS.................................................................................................................73
MARKETING ACTIVITY.............................................................................................................74
DISTRIBUTION.............................................................................................................................75
Voluntary Sector Expenditure on Grants................................................................................75
National Lottery Funding...........................................................................................................75
Table 4.4: National Lottery Distribution Fund Grants
by Recipient Sector (m and %), Year Ending March 2012.................................................75
Big Society Capital Group...........................................................................................................76
Table 4.5: Share of Big Social Capital Investment by Outcome Area ( invested), Year
Ending December 2012...............................................................................................................76
UK Community Foundations......................................................................................................77
Table 4.6: UK Community Foundations Expenditure on Charitable Activities (000),
Years Ending 31st March 2011 and 2012................................................................................78
5. Corporate Funding and Financing
79
BACKGROUND............................................................................................................................79
TAX INCENTIVES........................................................................................................................80
Gifts of Money..............................................................................................................................80
Gifts of Land, Buildings or Shares.............................................................................................81
Gifts of Company Equipment, Trading Stock or Staff Help................................................81
Gifts of Equipment......................................................................................................................82
Gifts of Trading Stock.................................................................................................................82
Secondment of Employees.........................................................................................................82
MARKET SIZE...............................................................................................................................82
Table 5.1: Leading 15 Corporate Donators in the UK by Amount Donated (m),
Latest Financial Year...................................................................................................................83
CONSUMER TRENDS.................................................................................................................84
Partnerships...................................................................................................................................84
Cause-Relating Marketing and In-Store Promotions............................................................85
Corporate Charitable Foundations...........................................................................................85
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Contents
Volunteering.................................................................................................................................86
Products and Services..................................................................................................................86
MARKETING AND PROMOTION...........................................................................................87

DISTRIBUTION.............................................................................................................................87
Table 5.2: Worldwide Corporate Giving by Industry Type (%), 2008................................87
6. PEST Analysis
89
POLITICAL.....................................................................................................................................89
Government Plans to Consult on Society Lotteries Contribution to Good Causes.........89
Government Consult on Reform of Payroll Giving...............................................................89
Industry Calls for Introduction of Chugging Regulations..................................................91
ECONOMIC...................................................................................................................................92
Charities Continue to be Threatened by Financial Meltdown............................................92
SOCIAL...........................................................................................................................................93
Social Investment and the Big Society a Success?..................................................................93
The Problem of Corporate Social Responsibility....................................................................94
TECHNOLOGICAL.......................................................................................................................95
Charities Still Not Using Social Media Effectively..................................................................95
Mobile Giving...............................................................................................................................96
7. The Future
98
OVERVIEW...................................................................................................................................98
General Economic Forecasts......................................................................................................98
Table 7.1: Economic Forecasts (000, % and million), 2013-2017........................................98
The Effect on Charities and the New Normal......................................................................99
Table 7.2: Optimist of Charities for the Outlook of Their Organisation Over the Next
12 Months (% of respondents), 2011/2012 and 2012/2013.................................................99
FORECASTS................................................................................................................................100
Table 7.3: Forecast Income of Registered Main Charities
in England and Wales by Income Bracket (m), Years Ending June 2013/2017............102
FUTURE TRENDS.......................................................................................................................103
On-the-Go Giving.....................................................................................................................103
Social Investment.......................................................................................................................104
Trading.........................................................................................................................................106
8. Further Sources
107
Associations...............................................................................................................................107
Publications...............................................................................................................................108
General Sources.......................................................................................................................109
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Contents
Government Publications ....................................................................................................109

Other Sources...........................................................................................................................110
Key Note Sources ....................................................................................................................113
Understanding Consumer Survey Data
115
Number, Profile, Penetration..............................................................................................115

Social Grade...............................................................................................................................116
Standard Region......................................................................................................................116
Key Note Research
117
The Key Note Range of Reports
118
Key Note Ltd 2013
Charity Funding
Executive Summary
Executive Summary
Despite figures produced by the Charity Commission (CC) suggesting that the
total gross income of registered charities in England and Wales has grown
year-on-year between 2008 and 2012, the past 5 years have seen mounting
pressure being put on charitable organisations based in the UK, with many
charities facing a triple whammy of rising costs; increased demand for services;
and an unprecedented fall in income. This has led to the National Council for
Voluntary Organisations (NCVO) labelling 2012 as an annus horribilis for the
charity sector, while several critics and trade sources have suggested that the
sector is now reaching a crisis point.
Government public sector spending cuts have also taken their toll on the
charity sector in recent years, following the ongoing implementation of
austerity measures across several Government departments and bodies, in
order to cut the growing UK budget deficit. Overall, public expenditure cuts
reached 8bn in 2011/2012, according to data compiled by the Office for
Budget Responsibility (OBR), with significant frontloaded cuts to local
authority (LA) budgets for the same year totalling 6.8bn. The NCVO estimates
that, in line with proportionate extrapolations of wider public funding cuts,
reductions in funding made to the voluntary sector would be around 396m
for 2011/2012. Furthermore, reductions in statutory funding supplied to
charities is likely to continue to reduce over the coming years, with the NCVO
estimating that funding could be 1.7bn lower by 2017/2018, compared with
2010/2011.
A number of trends have served to encourage growth within the voluntary
sector, however. Retail and trading operations, in particular, as well as the
growth of digital giving which has been buoyed by the increasing
transition to mobile technologies, such as smartphones and tablet computers
over the past few years have enabled room for growth. Surprisingly, retail
operations run by charities have continued to expand during the recession,
with annual income from UK charity shops reaching an all-time high of 1bn
in 2012, according to figures compiled by the Charity Retail Association (CRA).
Meanwhile, donations made via text message more than doubled between
2011 and 2012, rising from 32m to 66m, according to premium rate phone
services regulator, Phonepay Plus.
Another area pegged for substantial growth within the sector is social
investment, with the Government investing significant time and effort into
encouraging the expansion of this new market in line with strategies
introduced in 2010/2011. Part of this strategy has seen the introduction of Big
Society Capital (BSC) in early 2012, as well tax relief incentives (which are due
to come in during 2014) and the launch of additional funds via Social
Investment Bonds (SIBs), the Social Incubator Fund (worth (worth 10m) and
the Social Outcomes Fund (worth 20m). Despite this, many charities have been
left questioning the viability of social investment models, which often involve
the provision of repayable finance, with around 79% of charities questioned
by a study undertaken by PwC revealing that they had not even considered
using a social investment model.
Key Note Ltd 2013
Charity Funding
Executive Summary
All-in-all future predictions appear relatively positive for the charity funding
sector over the next 5 years, with signs of recovery albeit a slow recovery
evident within UK economic projections, while volunteering should benefit
from the success of the Games Makers during the 2012 Olympic and
Paralympic Games. Income streams, such as retail and trade, as well as social
investment, grant-making and statutory sources are also still likely to remain
important within the coming years. As such, Key Note estimates total income
within the charity sector to observe slow but steady growth over the next
5 years, with overall growth of 5.7% forecast for between 2013 and 2017.
Key Note Ltd 2013
Charity Funding
Introduction
1. Introduction
REPORT FOCUS
This Key Note Market Update revisits the charity funding sector following the
publication of the previous edition of this report in September 2011. The report
will analyse the different types of charities currently operating within England
and Wales including fundraising charities, grant-making trusts and
corporate funding and financing programmes as well as the legislation that
underpins charitable giving in the UK. It will also investigate current market
trends, in terms of the volume of charities currently in operation within the UK
and their combined annual gross income. Other issues, such as regulatory
change and the impact that the double-dip recession, along with other
economic events, has had on charitable giving will also be discussed.
Recent events that have driven charitable donations include the Syrian Civil
War currently being fought between the Syrian Ba-ath Party and rebels seeking
to oust it a conflict that has resulted in suspected widespread massacres,
sieges and violations of childrens rights across the country since the war began
in March 2011. Another recent tragedy that saw British Army soldier Drummer
Lee Rigby brutally murdered by two suspected terrorists in Army Barracks near
Woolwich has resulted in a flood of donations being made to the UK military
charity, Help for Heroes, after it was revealed that Rigby had been wearing a
Help for Heroes T-shirt at the time of his death.
This Market Update will further analyse the various income sources through
which charities are able to generate revenue. According to the National
Council for Voluntary Organisations (NCVO), which provides extensive research
on the voluntary and civil society sectors in the UK, individual giving, which
includes income from donations, legacies, the purchase of goods and payment
for services, continues to remain the largest revenue stream for charities (as of
2010/2011), representing approximately 43% of total income. Other important
income sources to charities include statutory sources, such as contracts and
grants from statutory bodies (including Government bodies), which accounted
for 37% of total charity funding in 2010/2011; and the voluntary sector, which
represented 8.4% of total income over the same period.
Government funding has been historically important in terms of charity income
in the past; however, the recent double-dip recession, along with ongoing
concerns relating to the Eurozone sovereign debt crisis, has seen public sector
funding suffering enormous cuts as part of the Governments wider austerity
measures, which have been implemented in order to surmount the UKs
significant debt deficit.
Key Note Ltd 2013
Charity Funding
Introduction
According to a leaked report compiled by the Association of Chief Executives

of Voluntary Organisations (Acevo) in March 2012, the charity sector faced local
and national Government funding cuts of between 1bn and 5.5bn in 2012.
This comes despite Government plans to help boost charity income and
voluntary work via its Big Society scheme, which utilises money raised via
dormant bank accounts in the UK to invest and develop grant programmes
across the country. Although Big Society Capital Ltd (BSC), which is responsible
for funding such programmes, has the potential to generate 400m from
dormant accounts, many charity spokespeople have been quick to criticise the
organisation, with several industry insiders suggesting that it will not do
enough to combat the effects of the recession and the impact that public sector
cuts are having on the charity sector at the present time.
The Charity Commission (CC) has also continued to have its funding cut, with
concerns recently mounting regarding the Treasurys proposal to make 10%
savings across all Government departments by 2015/2016. In response, Chief
Executive (CE) of the CC, Sam Younger, stated that the organisation had no
more fat to cut, and argued that no more cuts could be made without
impacting on the fulfilment of our statutory responsibilities. The CC has
already had its budget frozen at around 30m since 2005, with no increases to
account for inflation and, by 2014, the organisation is scheduled to have
reduced its budget to just 21.3m. Wider public sector funding cuts, along with
the double-dip recession, have also had a significant impact on consumer and
business expenditure, with inflation and unemployment continuing to remain
high over the past few years. As such, donations from the public have suffered
slightly, with many people unable to afford charitable giving as they once did.
Other matters discussed in this report focus on regulatory changes and new
guidance issued to charitable organisations. In March 2012, the Government
passed the Charities Act 2011, which consolidated legislation outlined by both
the 1993 and 2006 Charities Acts and contained further provisions relating to
exempt charities. More recently, the new Small Charities Donations Act 2012
received Royal Assent, which was introduced in order to enable charities and
Community Amateur Sports Clubs (CASCs) to claim a Gift Aid-style payment on
small cash donations of up to 20, in situations where it is often difficult to
obtain a Gift Aid declaration. Under the new Act, eligible charities and CASCs
will now be able to claim top-up payments on up to 5,000 worth of small
donations each year.
Key Note Ltd 2013
Charity Funding
Introduction
DEFINITION
According to the CC, charities are defined as organisations that have charitable
purposes or aims that are for the benefit of the public known as the public
benefit requirement, as outlined by the Charities Act 2006 (which has since
been amalgamated into the Charities Act 2011). Further stipulations require
that a charity must have purposes or aims, all of which are exclusively
charitable; therefore, a charity cannot have some purposes which are
charitable and others that are not. The Charities Act 2011 outlines a number
of charitable purposes that such organisations must maintain, and that are also
for the benefit of the public:
the prevention or relief of poverty
the advancement of education
the advancement of religion
the advancement of health or the saving of lives
the advancement of citizenship or community development
the advancement of the arts, culture, heritage or science
the advancement of amateur sport
the advancement of human rights, conflict resolution or reconciliation, or
the promotion of religious or racial harmony or equality and diversity
the advancement of environmental protection or improvement
the relief of those in need, by reason of youth, age, ill-health, disability,
financial hardship or other disadvantage
the advancement of animal welfare
the promotion of the efficiency of the armed forces of the Crown, or of the
efficiency of the police, fire and rescue services or ambulance services
any other purposes currently recognised as charitable and any new charitable
purposes which are similar to another charitable purpose.
Various terms are used throughout the report to refer to charitable
organisations, including not-for-profits, charities, voluntary organisations,
community organisations, voluntary community organisations (VCOs) and the
voluntary community sector (VCS). These terms reflect those utilised by industry
resources and refer to a general definition of charities, as well as more specific
charitable organisations. It should also be noted that the overall charity sector
is sometimes termed the third sector or the civil sector, which generally refers
to social organisations that are not-for-profit and non-governmental; and
which therefore fall outside of the scope of the public and private sector.
Key Note Ltd 2013
Charity Funding
Strategic Overview
2. Strategic Overview
FACTORS AFFECTING THE MARKET
Legislative Changes
Charities Act 2011
On 14th March 2012, the Charities Act 2011 came into effect with the purpose
of setting out how all charities in England and Wales are registered and
regulated. The new Act replaces most of the Charities Acts 1992, 1993 and 2006;
as well as all of the Recreational Charities Act 1958. The 2011 Act was
introduced in order to make the law regarding the regulation of charities
easier to understand, by replacing all four previous acts of Parliament with one.
The Act itself does not include any specific changes to the law, but rather
restates and combines previous legislation. Its main purpose is to govern the
regulation of charities in England and Wales.
The main provisions of the 2011 Act are as follows:
the continuation of the body corporate known as the Charity Commission
(CC) in England and Wales, the functions of which are performed on behalf
of the Crown and the main aims of which include increasing public trust and
confidence in charities, promoting awareness and understanding of the
operation of the public benefit requirement; promoting compliance by
charity trustees with their legal obligations; promoting the effective use of
charitable resources; and enhancing the accountability of charities to donors,
beneficiaries and the general public
the CC is also responsible for determining whether institutions are or are not
charities; and is charged with identifying and investigating apparent
misconduct or mismanagement in the administration of charities; as well as
providing advice and guidance with respect to the administration of charities
all charities in England and Wales with a gross income exceeding 5,000 are
required to be registered with the CC
all charities must prove that their activities are charitable and undertaken for
the publics benefit in order to be considered a charity in the eyes of the
law and as per regulations governed by the CC
the Act also sets out regulations applying to donations made to charities,
including property, monetary donations, investment schemes and other
credit deposits
provides protection of land held by a Trust for a charity, which cannot be
disposed of without an order from the court or the CC similar provisions
apply to mortgages held by charities
Key Note Ltd 2013
Charity Funding
Strategic Overview
trustees of charities must ensure that accounting records are kept in respect
of the charity, which are sufficient to show and explain all of the
organisations transactions; in particular, accounts must show day-to-day
income and expenditure, and the matters in respect of which the receipt and
expenditure took place, as well as a record of the assets and liabilities of the
charity (although for charities with a gross income that does not exceed
250,000, charity trustees may prepare a receipts and payments account and
statement of assets and liabilities instead of a full statement of accounts)
charities with gross income exceeding 25,000 must have their financial
accounts examined by an independent examiner
larger charities with a gross income exceeding 500,000, or those whose
assets exceed 3.26m, are subject to a full audit
charity trustees must prepare annual reports in respect of each financial year
of the charity, which should contain information regarding the activities of
the charity during that year and any other information relating to the charity
or to its trustees and officers, which must be made transmitted to the CC and
made available for public viewing
the Act also specifies certain stipulations regarding charity trustees, in that
trustees must be disqualified if found to have been convicted of any offence
involving dishonesty or deception; if the trustees had been adjudged as
bankrupt; and/or if the trustee has been removed from his or her position by
the CC due to misconduct or mismanagement; however, some
disqualifications can be waived by the CC in extenuating circumstances
it also lays out stipulations regarding the remuneration of trustees and
payments made by the charity to persons in return for services provided
charities may arrange for the purchase, out of the funds of the charity, of
insurance designed to indemnify the charity trustees or any trustees for the
charity against any personal liability in respect to breach of trust or duty and
any negligent activity committed by them in their capacity as directors or
officers of the charity
to provide stipulations regarding charitable companies where the name of
the company does not include the word charity or charitable.
Charitable Incorporated Organisations

The Charities Act 2011 also provides legislation relating to a charitable
incorporated organisation (CIO), which refers to an incorporated form of a
charity which is not a company. CIOs only have to register with the CC and not
Companies House, and can only be created once officially registered with the
Commission. Such organisations were designed so that charities can benefit
from becoming an incorporated body, which means that they are able to enter
into contracts in their own right and that their trustees generally have limited
or no liability for the debts of the CIO in question.
Key Note Ltd 2013
Charity Funding
Strategic Overview
CIOs were created in response to requests from some charities for a new
organisational structure which was able to provide the benefits of being a
company, without the burdens associated with company status. CIOs are
provided with a legal personality of their own, thus enabling the organisation
to conduct business in its own name rather than the name of its trustees. In
addition, members and trustees of CIOs are usually personally safeguarded
from the financial liabilities that the charity incurs, which is not normally the
case for unincorporated charities.
CIO status is generally seen as being more suitable for small- to medium-sized
organisations, which employ staff and/or enter into contracts. However,
although establishing and running a CIO is often simpler than establishing a
charitable company, it may not be as straightforward as running an
unincorporated association or a charitable trust.
Although many aspects of running a CIO are the same as other forms of charity,
there are some differences and additional obligations demanded of the
trustees of a CIO, including:
CIOs must register with the CC, regardless of their income, even if they have
an income of less than 5,000
a CIO cannot be considered as an exempt charity
a CIO does not come into existence until registered by the CC
a CIO must have a registered principal office situated in either England or
Wales
all CIOs must submit an annual return and annual accounts to the CC,
regardless of their income
CIOs must keep a register of members and a register of trustees, which must
be made available to the public
the constitution of a CIO must contain certain provisions there are two
main models of constitution including one for CIOs where the members are
not necessarily trustees (the association model), and one for CIOs where the
only members are the trustees (the foundation model)
amendments to a CIOs constitution are not valid until they have registered
with the CC and certain amendments must gain prior consent from the
Commission
insolvency laws apply to CIOs.
Key Note Ltd 2013
Charity Funding
Strategic Overview
Small Charitable Donations Act 2012

The Small Charitable Donations Act 2012 received Royal Assent on the
19th December 2012. The main purpose of the Act was to provide for the
making of payments to certain charities and clubs in respect of gifts made to
them by individuals and introduced the Gift Aid Small Donations Scheme
(GASDS). The aim of this was to make it easier for charities and community
amateur sports clubs (CASCs) to claim a Gift Aid-style payment on small cash
donations of up to 20. Previously, claiming gift aid on these type of small
donations often posed significant difficulties to charities in terms of obtaining
a Gift Aid declaration from the donator. The new Act, however, means that
GASDS no longer require individual donors to complete a Gift Aid declaration
or the charity or CASC to provide the donors details with their repayment
claim, as was previously required under Gift Aid provisos.
The Act also provides for eligible charities and CASCs to claim top-up payments
on up to 5,000 worth of small donations each year. These top-up payments
are designed to be administered in the same way as Gift Aid and therefore,
where the basic rate of income tax is 20%, small donation income of up to
5,000 will entitle the charity or CASC to a top-up payment of up to 1,250.
The scheme is protected from excessive claims by requiring that charities and
CASCs that are connected with one another share between them the maximum
5,000 limit on which small donations may be claimed for top-up payments.
However, the additional allowance will not be affected by this stipulation.
In order to be eligible for top-up payments, charities and CASCs must have been
registered as such for at least 3 years, and must have made at least three Gift
Aid exemption claims in the previous 7 tax years. The Scheme also excludes
charities and CASCs, which have incurred a penalty under Gift Aid or the
GASDS, from making claims under the GASDS for the tax year in which the
penalty was made, as well as the following 2 years, although Gift Aid
exemption claims made in those tax years will still count in determining
eligibility in subsequent years.
Under the new Scheme, total Gift Aid donations must represent at least 50%
of the amount of the small donations on which top-up payments are being
claimed. In some circumstances the maximum amount of small donations on
which top-up payments can be claimed by some charities can be increased. For
example, if a charity runs charitable activities in a community building, the
maximum limit can be increased from 5,000 of small donations, by up to a
further 5,000 for small donations collected in each community building.
However, the community building provisions do not apply to CASCs.
Key Note Ltd 2013
Charity Funding
Strategic Overview
Fundraising
Fundraising is a key source of income for charities, and there are many channels
through which funds may be raised. Under regulations outlined by the
Charities Act 2011, trustees must ensure that their charity complies with laws
relating to fundraising and that fundraisers follow best practice. This includes
all aspects of fundraising, such as fundraising methods, the costs involved, the
financial risk and how the money raised is spent. Some aspects of fundraising
are subject to specific regulations and laws, including the following:
public collections when a charity carries out a public collection, it must
seek a licence from the local authority (LA) or, in some case, the Metropolitan
Police; fundraisers must also provide a solicitation statement, detailing how
they are remunerated, to the donor
gaming activities, such as lotteries, raffles, etc. lotteries, bingos and raffles
are subject to specific regulation under the Gambling Act 2005, which is
administered by the Gambling Commission
event fundraising events can be affected by a number of regulations,
including local licensing laws and alcohol licensing laws, as well as legislation
for food safety and consumer protection
broadcast and telephone fundraising this type of fundraising is subject to
specific data protection laws and charity laws, which stipulate that donors
have the right to a refund if they donate over 100; furthermore, charities
must ensure that they do not make unsolicited calls to numbers registered
on the Telephone Preference System (TPS) apart from those that have agreed
to be contacted by the charity at a previous date
fundraising involving children this type of fundraising is subject to child
protection laws and any person working with children must be vetted in
accordance with such laws
online fundraising this method of fundraising must comply with the
Privacy and Electronic Communications Regulations 2003 and the Consumer
Protection (Distance Selling) Regulations 2000
door-to-door collections this method is subject to the House to House
Collections Act 1939, as well as local licensing laws; charities must obtain a
licence to fundraise house-to-house from the LA or the Metropolitan Police,
unless the charity holds a national Exemption Order from the Cabinet Office
legacy fundraising this type of fundraising is not subject to any specific
laws, although it is subject to a general legal principle regarding undue
influence
fundraising involving professional fundraisers, commercial participators and
fundraisers who are paid by the charity all types of fundraisers are required
to make a solicitation statement which informs the donor of how they are
remunerated; commercial participators and professional fundraisers are also
subject to regulations under the Charities Act 2011, which requires charities
to have a fundraising agreement with the professional or commercial
fundraiser prior to fundraising.
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Strategic Overview
In regard to charity trustees, their main responsibilities in relation to

fundraising, as stipulated by the law, include acting prudently, balancing issues
of resourcing and potential risks to the charity. Trustees should also ensure that
fundraising activities are properly run and that they deliver the charitable
outcomes for which they have been set up for, i.e. for the benefit of the public.
Charity trustees must also be aware of the tax implications involved in
undertaking certain kinds of fundraising, details of which are provided by HM
Revenue & Customs (HMRC).
Further stipulations laid out by legislation covering charity fundraising in
England and Wales require charities with a gross income of over 500,000 to
comment on any fundraising activity undertaken during the year in line with
details provided by the Statement of Recommended Practice (SORP) as issued
by the CC. In addition, when fundraising, a charity with a income of over
10,000 must state that they are a registered charity on a range of documents,
including on their website, via advertisement and on other documents, such as
receipts. This requirement also extends to any notices, advertisements or
documents used to fundraise.
Exempt and Excepted Charities

The Charities Act 2006 (which now forms part of the 2011 Act), changed the
way that excepted and exempt charities are regulated. Under current
legislation, excepted charities are those that have been excepted from the
requirement to register with the CC either by legislation or an order made
directly by the Commission. The majority of excepted charities are:
connected with churches and chapels belonging to various Christian
denominations
charitable service funds of the armed forces
Scout and guide groups.
The Charities Act 1993 (which has now been incorporated into the Charities
Act 2011, along with other legislation pertaining to charities in England and
Wales) made certain charities exempt from the supervision of the CC. These
charities are not required to register with the CC and therefore fall outside of
its monitoring and investigative powers. Despite this, exempt charities still
have the same status and tax benefits given to other charities based in England
and Wales and must still comply with general charity law. They are also still
subject to the jurisdiction of the Courts and can request support from the CC
when necessary; for example, to authorise an action not otherwise allowed by
their governing document. Exempt charities can include universities, some
church funds, educational charities, museums and galleries, and industrial and
provident (community benefit) and friendly societies, including social housing
providers.
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Strategic Overview
Charities Act 2006 Review

In July 2012, Lord Hodgson published his review Trusted and Independent:
Giving Charity Back to Charities Review of the Charities Act 2006, which was
undertaken in order to investigate the effectiveness of the regulations set out
by the Charities Act 2006, which has since been amalgamated into the Charities
Act 2011. The Review included over 100 recommendations, which were aimed
at giving charities and their trustees greater freedom in terms of fundraising
activities, while also encouraging the development of social investment and
public participation. Some of the recommendations outlined by Hodgson
included:
providing greater powers to councils to deal with aggressive charity
collectors on high streets in England and Wales, i.e. by allowing councils to
license fundraisers and control and how and where collections take place
charities with incomes of more than 1m will automatically be allowed to
pay their trustees (although smaller charities should still be required to
obtain permission from the CC because of the greater danger of abuse in
smaller organisations)
raising the income threshold for compulsory regulation with the CC from
5,000 to 25,000
the removal of Gift Aid for organisations that are late in filing their accounts
the introduction of fees for registering new charities.
Since the publication of Lord Hodgsons review, the Government has collected
further response from the Minister of Civil Society and the Public
Administration Select Committee (PASC), both of which will be taken into
account before a full response to Lord Hodgsons review is published. The
response published by Minister of Civil Society, Nick Hurd MP, which was
published on 4th December 2012, accepted the majority of the
recommendations laid out by Lord Hodgson, although Hurd stated that some
recommendations will require further analysis and consideration before a final
decision can be made on whether or not they will be accepted. However, Hurds
response revealed that, based on comments from the charity sector regarding
the review, the recommendation that would allow large charities to pay their
trustees for acting as trustees should not be accepted.
On 6th June 2013, the Public Administration Select Committee (PASC)
published its response to the implementation of the Charities Act 2006 at the
bequest of the Government. PASCs response highlighted a number of issues
with the legislation, including:
the key tests stipulated by the Charities Act 2006 for determining charitable
status (otherwise known as the public benefit test) was critically flawed
suggested that the Government should revise the statutory objectives for the
CC, to allow the Commission to focus its limited resources on regulating the
sector
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Strategic Overview
the proposal to increase the financial threshold for compulsory registration

of a charity with the CC should be rejected
charities should publish their spending on campaigning and political activity.
Although the Act was broadly welcomed by the charity sector, PASC stated that
it found the legislation to be critically flawed on the issue of public benefit.
PASC believes that the obligation put on the CC to produce guidance referring
to the public benefit stipulation left the Commission in an impossible
position, and pointed to a number of costly battles fought by the CC with the
Independent Schools Council and the Plymouth Brethren Christian Church as
evidence of this. The PASC also criticised the way in which the CC has
interpreted public benefit under the Act, and stated that it should be down
to Parliament to determine such criteria, rather than delegating such tasks to
the Commission and the courts. In addition, the PASCs response stated that
self-regulation of face-to-face fundraising (otherwise known as chugging) on
high streets or at the doorstep has failed to generate the level of public
confidence essential to maintaining the reputation of the charitable sector,
with research undertaken by the PASC showing that two out of three people
still felt uncomfortable as a result of fundraising methods using by some
charities an increase on figures compiled in 2010. It also pointed to warnings
from businesses, many of which feel that they have suffered due to chugging
on local high streets.
Both responses from Nick Hurd MP and the PASC, as well as comments from
the charity sector, have now been passed to the Government for further
consideration, before it publishes a full Government response to Lord
Hodgsons review, which will also set out plans for implementation at a later
date.
The Government will also take into consideration recommendations outlined
as part of the Law Commissions charity project, which began in March 2013
and will run until Spring 2014. The project will examine a range of issues
relating to the legal framework within which UK charities operate, in order to
recommend reforms that will have a positive impact on charity law in practice.
Issues that will be addressed by the Law Commissions project will include
legislation regarding the Royal Charter establishment of charitable
corporation, statutory government documents for charities, transactions and
dispositions, the powers of the CC and the Charity Tribunal, charity insolvency
law, and charity mergers and incorporations. The Law Commission is also
currently in discussions with the Cabinet Office on whether the issue of social
investment by charity trustees should also be included in the project, although
no official conclusion has yet been reached regarding this. Once the Law
Commission has completed this project, the recommendations will be put forth
for discussion with the Government and, if its proceeds to a final report with
a Draft Bill, its publication is anticipated for March 2016.
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Strategic Overview
Economic Pressures
The double-dip recession which spanned from 2008 through to 2012 has had
a significant effect on the charities sector in recent years. Not only has the
financial meltdown resulted in high inflation, rising unemployment and low
consumer spending levels, it has also seen the widespread dissemination of
public spending, with a number of public bodies and Government funding
schemes suffering significant cuts or even being abolished altogether. This has
meant that many public donors have found it increasingly difficult to
contribute money towards charities, many of which have already suffered at
the hands of cuts to local council funding, across the country. According to a
leaked report which was compiled by the Association of Chief Executives of
Voluntary Organisations (Acevo) on behalf of the Cabinet Office in March 2012,
the charity sector faced local and national Government funding cuts of
between 1bn and 5.5bn during the financial year. Although the Cabinet
Office described the report as a misrepresentation, the publication claimed
that, on average, 1,725 organisations applying for funds faced losing 45% of
their total income as a result of the cuts.
The National Council for Voluntary Organisations (NCVO), described the
2011/2012 period as an annus horribilis for the charity sector, which has been
faced with rising demand for services from those affected by the recession, as
well as rising costs and an unprecedented fall in income. Despite this, the
Government has reasoned that additional funds are available to charities and
social organisations via its flagship scheme the Big Society, which is funded
through capital transfers from dormant accounts under the Dormant Accounts
Scheme, and has the potential to reach around 400m; as well as a 200m
investment from high-street banks based in the UK. The Big Society Foundation
is funded via Big Society Capital (BSC), in order to provide finance and support
to social sector organisations tackling social problems.
Despite the creation of the Big Society Foundation, a number of critics from
the charity sector and the political sphere have questioned the schemes worth,
with many suggesting that it has not done enough to combat the ongoing cuts
being made to social organisations and charities across the UK. Problems have
also arisen over the Big Society ethos of social investment, which means that
any money raised is used to generate both social and financial returns. This also
means that money provided by BSC to charities does not come in the form of
grants, but instead as loans that must be repaid.
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MARKET DYNAMICS AND SEGMENTATION

Market Sectors
This report primarily focuses on charitable organisations registered with the
CC that is, those with gross incomes of over 5,000 (with the exception of
certain extenuating circumstances or exempt/excepted charities). Although the
majority of figures included in this reports analysis refer to main charities
without subsidiaries included, it should be noted that some statistics taken
from the Charities Aid Foundation do include subsidiary organisations as well.
For the purposes of this report, the fundraising charities sector has been split
into two main categories fundraising charities and grant-making trusts
both of which are examined in details in Chapters 3 and 4, respectively. A
further chapter will investigate corporate funding and financing of charities
and charitable schemes.
Total Industry Value and Growth

According to figures compiled by the CC, there were a total of 162,283 charities
based in England and Wales (excluding subsidiaries) as of June 2012, up by just
0.2% from 161,978 in June 2011. Although a slight decline in the number of
smaller charities with annual incomes of between 0 and 10,000 was observed
between 2011 and 2012; all other income categories observed a growth in
terms of number of main charities over the period. Despite this, smaller
charities with incomes of up to 10,000 represented the largest proportion of
total charities in England and Wales during 2012, at 43.2%, while those with
incomes of between 10,001 and 100,000 accounted for 32% of total charities
during the same year. In comparison only 6.1% of charities based in England
and Wales registered an income of above 501,000 in 2012 and only 1.1% had
an income of 5m or more.
Further statistics compiled by the CC show that total income generated by
registered main charities in England and Wales stood at 58.1bn in 2012, up
by 3.8% from 55.99bn in the previous year. The growth observed in charitable
income is surprising, given the difficult economic conditions that have affected
the UK over the past few years. It should be noted, however, that demand for
charitable services has grown significantly in recent years as well, due to rising
unemployment across the country, while inflationary pressures have continued
to result in higher costs for such organisations. Unsurprisingly, the majority of
charitable income generated by the sector was represented by large
organisations with annual incomes of 5m or over, which accounted for 68%
of total income, while those with incomes of between 500,001 and 5m
represented 20.9% of total income and those with incomes of between
100,001 and 500,000 represented 7.5%. In comparison, charities with
incomes of below 100,000 only accounted for 3.6% of total charitable income
in 2012.
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Table 2.1: Income of Registered Main Charities in England

and Wales (number, m and %), June 2011 and 2012
Number of Main
Charities
% of Registered Main
Charities
2011
2012
2011
2012
0-10,000
71,282
70,140
44.0
43.2
10,001-100,000
50,750
51,872
31.3
32.0
100,001-500,000
17,908
19,581
11.1
12.1
501,000-5,000,000
7,822
8,092
4.8
5.0
5,000,000+
1,818
1,823
1.1
1.1
149,580
151,508
92.5
93.4
12,398
10,775
7.7
6.6
161,978
162,283
100.0
100.0
Annual Income Bracket
Subtotal
Not yet known
Total
% of Income of
Registered Main
Charities
Total Annual Income

(m)
2011
2012
2011
2012
235
232
0.4
0.4
10,001-100,000
1,781
1,834
3.2
3.2
100,001-500,000
4,031
4,368
7.2
7.5
500,001-5,000,000
11,748
12,151
21.0
20.9
5,000,000+
38,198
39,518
68.2
68.0
55,993
58,103
100.0
100.0
55,993
58,103
100.0
100.0
Annual Income Bracket

0-10,000
Subtotal
Not yet known
Total
Note: figures may also include charities with an income of less than 5,000 which have
registered with the Charity Commission, although they are not regulated by law to do
so; annual gross income figures are based on figures provided by charities in their annual
returns; double counting may have arisen when resources are transferred between
charities and counted in both.
Source: Charity Commission for England and Wales (June 2011 and 2012)
Crown copyright
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Although the number of charities registered in England and Wales grew by

0.8% in 2012, this figure is still significantly lower than the 168,354 recorded
in 2008. Despite this, combined annual gross income generated by charities
observed year-on-year increases between 2008 and 2012, with income rising
by 20.8% from 48.4bn to 58.48bn. This increase could be explained by hikes
in the number of larger charities, i.e. those with an income of over 10m,
observed over the past few years, which increased by 28.2% between 2008 and
2012 from 747 to 958. In line with this, income generated by larger charities
rose by 30.5% over the 5-year review period, with the proportion of total
income represented by larger charities increasing from 53% in 2008 to 57.3%
in 2012.
Table 2.2: Number of Registered Main Charities and Large

Charities in England and Wales (number, bn and %),
Years Ending 31st December 2008-2012
Total Number
of Charities
Annual Gross
Income (bn)
Number of Large
Charities (with
annual income in
excess of 10m)
Large Charities
Annual Gross
Income (bn)
Large Charities
Proportion of
Total Income (%)
2008
168,354
48.40
747
25.67
53.0
2009
160,515
51.74
833
28.26
54.6
2010
162,415
53.86
883
30.10
55.9
2011
161,649
55.87
901
31.75
56.8
2012
162,915
58.48
958
33.50
57.3
Note: from 2008 onwards, because of the advent of group accounts, the definition of
gross income was changed to bring it more closely in line with the total incoming
resources reported on the Statement of Financial Activities (SoFA) and in particular to
include the financial activity of subsidiaries and any gains or losses on disposal of own
use assets; this means that figures from 2009 onwards may not be directly comparable
with historic figures; double counting may have arisen when resources are transferred
between charities and counted in both.
Source: Charity Commission for England and Wales (31st December 2008-2012)
Crown copyright
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Table 2.3 displays the types of causes that attract the most amount of voluntary
income in the UK, as of May 2013. According to the statistics, which were
produced by the Charities Aid Foundation (CAF), education and training
received the highest level of income as of May 2013, attracting donations
amounting to 9.83bn, followed by causes relating to the advancement of
health or saving lives (6.2bn), the prevention or relief of poverty (5.04bn)
and general charitable purposes (4.95bn).
Table 2.3: Voluntary Income of UK Charities by Cause

by Value (bn), May 2013
Voluntary Income (bn)
Causes
Education and training
9.83
Advancement of health or saving of

lives
6.20
Prevention or relief of poverty
5.04
General charitable purposes
4.95
Overseas aid/famine relief
3.52
Religious activities
3.35
Disability
3.34
Arts/culture/heritage/science
3.09
Economic/community development/
employment
2.69
Environment/conservation/heritage
1.97
Accommodation and housing
1.71
Amateur sport
1.10
Animals
0.87
Armed forces/emergency service

efficiency
0.10
Source: Key Note based on data from Charities Aid Foundation,

www.charitytrends.org, June 2013
DISTRIBUTION
According to the UK Civil Society Almanac, which is published by the NCVO and
provides a breakdown of charitable income by type of source, total charitable
income amounted to 38.34bn in 2010/2011.
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The greatest source of income for charities during 2010/2011 was earned
income (i.e. from the sale of goods and services, including the gross income of
trading subsidiaries), which represented over half (55.8%) of total income for
the year. Statutory sources generated the highest level of earned income, at
11.23bn, representing almost a third (29.3%) of total charitable income alone.
This was followed by individual sources (21%), voluntary sector earned income
(3.2%) and private sector earned income (2.2%).
In comparison, voluntary income (i.e. income that has been freely given, usually
as part of a grant or donation and for which little or no benefit is received by
the donor) amounted to 14.67bn in 2010/2011, representing 38.3% of total
charitable income. Within this sub-category, individual income was found to
be the greatest revenue stream, with 6.67bn worth of individual voluntary
income generated in 2010/2011, followed by statutory sources, which donated
2.95bn to charitable causes and the voluntary sector, which generated
1.99bn during the same year. Meanwhile, investment income (which includes
income from investments and cash balances) only accounted for a relatively
small proportion of charitable income during 2010/2011, at 6%, with dividends
generating 1.2bn, rent of property raising 715.6m and interest on deposits
providing 377.7m over the year.

(m at April 2011 prices and %), 2010/2011
Income (m)
% of Total
11,232.4
29.3
Individual
8,065.3
21.0
Voluntary sector
1,239.4
3.2
836
2.2
21,373.1
55.8
Individual
6,673.5
17.4
Statutory sources
2,951.0
7.7
Voluntary sector
1,990.9
5.2
Legacies
1,731.7
4.5
Private sector
841.9
2.2
National Lottery
483.1
1.3
14,672.1
38.3
Earned Income
Statutory sources
Private sector
Total earned income
Voluntary Income
Total voluntary income
Table continues...
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(m at April 2011 prices and %), 2010/2011
...table continued
Income (m)
% of Total
1,197.4
3.1
Rent from property
715.6
1.9
Interest on deposits
377.7
1.0
2,290.7
6.0
38,335.9
100.0
Investment Income
Dividends, etc.
Total investment income

Total
Statutory sources income from the Government, its agencies and other public bodies
both locally and nationally in the UK, the EU and international governments
Individual income income donated by the general public, excluding payments made
from charitable foundations set up by individuals
Voluntary sector income from sources such as trusts and grant-making foundations
Private sector income from businesses and corporations but excluding payments from
charitable foundations set up by businesses
National Lottery income donated by the National Lottery
Source: NCVO UK Civil Society Almanac, 2013 National Council for Voluntary
Organisations/Third Sector Research Centre/Charity Commission
COMPETITIVE STRUCTURE
According to figures compiled by the CAF, the British Council, which works
across the UK and other countries to promote English language materials, the
arts and education, consistently attracted the largest level of income over the
past 3 years, generating a total income of 738.5m as of May 2013, up by 6.6%
from 693m for the year ending May 2012. Nuffield Health the UKs leading
healthcare and social enterprise charity was the second-largest charity in
terms of total income as of May 2013, with a revenue of 576.4m; followed by
Cancer Research UK with 492.6m, The National Trust for Places of Historic
Interest or Natural Beauty with 435.9m and The Charities Aid Foundation with
399.9m.
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Table 2.5: The Top 25 Charities in England and Wales by Total

Income (), Years Ending May 2011-2013
2011
2012
2013
704,530,000
692,963,000
738,502,000
554,600,000
576,400,000
Cancer Research UK
514,946,000
482,527,000
492,627,000
The National Trust for Places of

Historic Interest or Natural Beauty
405,634,000
412,846,000
435,916,000
The Charities Aid Foundation
377,433,000
399,481,000
399,946,000
Oxfam
318,000,000
367,500,000
385,500,000
291,472,000
332,881,000
230,347,899
254,389,387
254,389,387
279,012,000
253,059,000
Barnardos
234,323,000
244,984,000
244,984,000
British Heart Foundation
213,762,000
233,398,000
233,398,000
205,700,000
213,800,000
95,554,000
207,011,000
207,011,000
202,732,000
200,599,000
Action for Children
194,662,000
196,156,000
196,156,000
Royal Mencap Society
194,199,000
193,554,000
193,554,000
163,569,163
172,690,000
St Andrews Healthcare
154,495,000
161,417,000
161,417,000
AQA Education
151,906,000
151,906,000
159,095,000
Age UK
160,665,000
156,383,000
156,383,000
Leonard Cheshire Disability
155,026,000
156,357,000
156,357,000
UFI Charitable Trust
191,608,917
155,845,000
155,845,000
The Salvation Army
144,717,000
149,546,000
149,546,000
The Woodard Corporation
139,411,514
146,416,000
Marie Stopes International
129,860,000
145,173,000
The British Council

Nuffield Health
The Save the Children Fund

Wellcome Trust
CITB Construction Skills
The British Red Cross Society

The Salvation Army Social Work
Trust
The Girls Day School Trust
The Royal National Lifeboat

Institution
Source: Charities Aid Foundation
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According to figures compiled by the NCVO, charities involved in social services

represented the largest share of the sector in terms of both number and
income, representing 18.7% of total charities by size and almost a quarter
(23.7%) of the sector by income. Charities involved in culture and recreation
were the second-largest subsector in terms of size, representing 14.1% of total
charities and 11.1% of the market in terms of income.

by Type of Cause (number, m and %), 2010/2011
Number of
Charities
% of Total
Charities
Total
Income
(m)
% of Total
Income
Social services
30,387
18.7
9,089.0
23.7
Culture and recreation
22,858
14.1
4,242.1
11.1
Religion
13,422
8.3
1,410.5
3.7
Parent teacher
associations
12,696
7.8
201.1
0.5
Grant-making
foundations
12,128
7.5
3,094.6
8.1
Development
11,266
6.9
967.9
2.5
Education
7,713
4.8
1,548.5
4.0
Playgroups and nurseries
7,495
4.6
488.9
1.3
Health
6,547
4.0
4,030.5
10.5
Scout groups and youth

clubs
6,510
4.0
222.2
0.6
Village halls
6,059
3.7
91.5
0.2
Environment
5,497
3.4
2,726.7
7.1
International
5,211
3.2
3,274.2
8.5
Law and advocacy
3,868
2.4
1,370.4
3.6
Housing
3,770
2.3
1,353.3
3.5
Table continues...
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by Type of Cause (number, m and %), 2010/2011
...table continued
Number of
Charities
% of Total
Charities
Total
Income
(m)
% of Total
Income
Research
3,540
2.2
2,417.4
6.3
Employment and
training
1,941
1.2
1,252.7
3.3
Umbrella bodies
1,259
0.8
554.5
1.4
162,167
100.0
38,335.9
100.0
Total
Note: charitable causes and classifications may differ slightly from figures provided in
Table 2.3, as a different source has been used; totals may not sum due to rounding.
Source: NCVO UK Civil Society Almanac, 2013 National Council for Voluntary
Organisations
ADVERTISING
Main Media Advertising Expenditure
In terms of advertising expenditure, childrens charities invested the largest
amounts of money, spending 27.4m on marketing activities in the year ending
March 2013, up by 3.4% from 26.5m in the previous year, and representing
23.5% of total media expenditure in the charity market in the year to March
2013. Charities focused on providing support to cancer victims and healthcare
reported the second-largest advertising expenditure for the year ending March
2013, at 22m, up by 17.2% from the previous year, while those focused on
health activities registered the third largest at 18.8m. This sector also observed
the greatest growth during the period, with figures rising by 23.7%. In fact
almost all sectors of the charity market observed growth in terms of advertising
expenditure between 2012 and 2013, with the exception of organisations
dedicated to horticultural concerns, which saw a 4.7% decline during the
period after figures fell from 169,000 to 161,000.
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Table 2.7: Main Media Advertising Expenditure on UK Charities

by Sector (000 and %), Years Ending March 2012 and 2013
2012
2013
% Change
2012-2013
Childrens
26,529
27,422
3.4
Cancer
18,763
21,984
17.2
Health
15,200
18,805
23.7
Animals
14,287
16,818
17.7
Third-World
11,363
12,342
8.6
1,856
2,102
13.3
169
161
-4.7
Other
13,652
17,158
25.7
Total
101,819
116,792
14.7
Environmental
Horticultural
Source: Nielsen
According to figures compiled by Nielsen, Save the Children registered the

single highest expenditure on advertising activities in the year ending March
2013, with a main media expenditure of 12.1m. Cancer charities, Cancer
Research UK and Macmillan Cancer were not far behind, with expenditures of
11.1m and 6.9m registered, respectively, during the same year. Charities such
as the World Wide Fund for Nature (WWF) and the Dogs Trust were the biggest
spenders in the animal charities sector, with media spends of 5m and 3.7m,
respectively, while the British Red Cross recorded the highest expenditure
within the health sector at 4.9m and Oxfam had the highest in the third-world
sector, at 3.4m.
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with Expenditure Exceeding 1m (000), Years Ending March
2012 and 2013
Expenditure
Sector
2012
2013
10,629
12,125
Childrens
Cancer Research UK
7,278
11,077
Cancer
Macmillan Cancer
7,402
6,941
Cancer
WWF
4,915
4,997
Animal
626
4,920
Health
Dogs Trust
3,384
3,728
Animal
NSPCC
1,505
3,617
Childrens
Oxfam
2,922
3,435
Third-World
Wateraid
2,609
3,143
Third-World
Bladder & Bowel

Foundation
4,387
2,654
Health
Marie Curie
1,786
2,498
Cancer
Royal British Legion
1,494
2,424
Other
RSPCA
1,505
2,376
Animal
1,853
2,319
Health
Age UK
2,997
2,064
Other
Actionaid
1,464
1,993
Third-World
Barnados
1,862
1,679
Childrens
824
1,595
Health
Great Ormond Street

Hospital
1,579
1,552
Childrens
UNICEF
2,236
1,463
Childrens
Centrepoint
1,211
1,416
Childrens
Salvation Army
1,039
1,415
Other
Save the Children
British Red Cross
Drinkaware Trust
Table continues...
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with Expenditure Exceeding 1m (000), Years Ending March
2012 and 2013
...table continued
Expenditure
Sector
2012
2013
Plan International
701
1,306
Childrens
Christian Aid
910
1,146
Third-World
Time to Change
2,370
870
Health
Smile Train
1,699
593
Childrens
WWF World Wide Fund for Nature

NSPCC National Society for the Prevention of Cruelty to Children
RSPCA Royal Society for the Prevention of Cruelty to Animals
Source: Nielsen
Awards
A number of awards ceremonies are held in celebration of the charity sector
across the UK each year, thus bringing industry recognition to a number of
organisations that have performed particularly well. Further details regarding
a selection of the largest charity sector awards events are provided below.
The Responsible Business Awards

The Responsible Business Awards are held each year by Business in the
Community (BITC) the largest business-led charity in the UK. Since 1983, BITC
has worked locally, nationally and internationally to help its members
transform businesses and communities, and promote responsible leadership.
The BITC operates as a not-for-profit organisation and is one of a group of
charities belonging to The Princes Charities, of which The Prince of Wales is
President. It currently has a growing membership of over 850 companies, and
a further 10,700 businesses are engaged in its campaigns globally.
BITCs Responsible Business Awards (also known as the Big Tick awards) are
the UKs longest-running and most respected corporate responsibility awards,
celebrating the best examples of companies that have transformed
communities and their business to create a more sustainable future. In 2012,
the winners of the BITCs Big Tick awards included:
Responsible Business of the Year 2012 Marks & Spencer
Workwell Award 2012 Northumbrian Water Group, Wellbeing in Water
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Santander Responsible Small Business of the Year 2012 Cleone Foods

Marketplace Sustainability and Sustainable Production Award 2012 Lakes
Free Range Egg Company
Jaguar Land Rover Building Stronger Communities Award 2012 EDF
Energy, Energy Advice Development Project
Work Inspiration and Education Award 2012 Boots UK, Work Inspiration
Programme
ASDA Environmental Leadership Award, 2012 EDF Energy
Arts & Business Award 2012 VSM Husqvarna Viking Sewing Machines &
Craftspace
International Award for Small Business 2012 The Redbush Tea Company
Daily Crest Rural Action Big Tick 2012 Lakes Free Range Egg Company Ltd
International Award for Large Business 2012 Citi
Supporting Workplace Award 2012 Morrisons Supermarkets, Morrisons
Academy
Climate Change Award in association with the Mayday Journey 2012
Veolia Environmental Services
Bank of America Merrill Lynch Education Award 2012 Coca Cola
Enterprises Ltd, Education Programme
Ways2Work Award 2012 Quorum Business Park.
The Charity Awards

The Charity Awards are held each year by Civil Society Media and are sponsored
by the CAF. The awards identify, recognise and reward organisations that have
undertaken exceptional work in all areas of charitable activity across ten main
categories. The Charity Awards are now in their 14th year, and are seen as one
of the largest awards ceremonies celebrating best practice in the charity sector.
The Awards ceremony is hosted and managed by Civil Society Media, an
independent news, publishing and events company, which is focused entirely
on charities and other civil society organisations. Alongside the publication of
a number of trade titles including Charity Finance, Fundraising and
Governance, the company also runs the Charity Awards programme every year.
Winners of the 2013 Charity Awards, which were held on 13th June 2013 at
Grosvenor House, include the following:
Overall Winner Promoting Equality in African Schools (Peas)
Outstanding Achievement Award David Carrington
Advice, Support and Advocacy Reprieve
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Arts, Culture and Heritage Pallant House Gallery

Children and Youth Jewish Lads & Girls Brigade
Disability Livability
Education and Training Sue Ryder
Environment and Conservation The Woodland Trust
Grantmaking and Funding Trust for London
Healthcare and Medical Research Global Alliance for Rabies Control
International Aid and Development Promoting Equality in African Schools
(Peas)
Social Care and Welfare Age Concern Kingston upon Thames.
The Charity Times Awards

The Charity Times Awards are scheduled to reach their 14th year in 2013, and
have continued to remain one of the most popular awards ceremonies
celebrating best practice in the UK charity and not-for-profit sector. In total,
the awards cover 28 categories, and reward excellence and professionalism
across the industry.
The main objectives of the Awards are to honour the outstanding professionals
in the various fields of charity management; to support continuing professional
development and contribute towards raising the standards of charity
management; to promote and raise the profile of the charity sector; and to
provide recognition for those who are providing effective support to the
sector.
The Awards are managed by the Charity Times, a leading business and
management magazine for the UK non-profit sector, which is produced
bi-monthly and is a well-established source of trade news and information.
Winners of the 2012 Awards included:
Consultancy of the Year Deloitte
Boutique Investment Management JO Hambro
Investment Management Rathbone Investment Management
Best Use of the Web CARE International, Lend with CARE
Best Use of Technology JustGiving, JustTextGiving
HR Management Award Broadway Homelessness and Support
PR Team of the Year Diabetes UK
Financial Management Award Alternative Futures Group
Fundraising Team of the Year Battersea Dogs and Cats Home
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Campaigning Team of the Year Protection Against Stalking

Social Investment Initiative Scope
Corporate Social Responsibility Project of the Year Lloyds Scholars
Cross-Sector Partnership Addaction/Zurich Community
Corporate National Partnership Champion of the Year Cancer Research
UK/Network Rail
Corporate National Partnership of the Year with a Retailer Alzheimers
Society/Tesco
Corporate National Partnership with a Financial Institution Pfeg/HSBC
Corporate Community Local Involvement Berkshire East & South Bucks
Womens Aid/Mars
BIG Society Award Living Streets
Best New Charity Tyne Gateway
International Charity of the Year Build Africa
Rising CEO Star Charlotte Hill, Chief Executive (CE) of UK Youth
Charity Principal of the Year, Brett Wigdortz, Chief Executive Officer (CEO)
of Teach First
Outstanding Individual Achievement John Walton, Founder of the
Muscular Dystrophy Campaign
Charity of the Year: with income less than 1m The Trussell Trust
Charity of the Year: with an income of 1m to 10m Everton in the
Community
Charity of the Year: with an income of more than 10m Anthony Nolan.
Dods Charity Champion Awards

The Dods Charity Champion Awards are now in their eighth year and are
undertaken in order to celebrate and pay tribute parliamentarians who have
contributed significantly to the voluntary sector in the UK. The Awards also
provide a platform for charities to promote their activities and their
contribution to society. Winners of the 2012 Awards, which were hosted on
27th June 2012 in the Speakers Apartments in the House of Commons, included
the following:
Animal Welfare Champion Sheryll Murray MP
Childrens Champion The Baroness Howarth of Breckland OBE
Health Champion The Baroness Thomas of Winchester MBE
Society Champion Paul Maynard MP
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Charity of the Year: Local The Addiction Recovery Centre, Kirkintilloch

Charity of the Year: National Protection Against Stalking
Outstanding Achievement Stephen Pound MP, Sir Bob Russell MP and
David Amess MP.
The Queens Awards for Voluntary Service

The Queens Award for Voluntary Service is considered to be the highest award
given to volunteer groups based in the UK. The Award celebrates locally-run
charities, which are supported, recognised and respected by the local
community which it benefits. Winners receive a certificate signed by the Queen
and a domed glass crystal. Representatives from the winning organisation may
also be invited to attend the Queens Royal Garden Parties. The Award was
introduced in 2002 as part of celebrations for The Queens Golden Jubilee, and
was initially known as The Queens Golden Jubilee Award.
To mark the 60th Anniversary of The Queens Coronation in 2013, 117
outstanding UK volunteer groups were honoured as recipients of The Queens
Award for Voluntary Service 2013. The Award is often considered to be of
equivalent status for voluntary groups as MBEs for individuals. Winners
included Kennet and Avon Canal Trust, which undertook significant work to
restore and preserve the regions historic waterways; and West London-based
charity, Family Friends, which received the Award for the support that they
have provided in helping families to help themselves across Kensington &
Chelsea and Hammersmith & Fulham.
The Third Excellence Awards

The Third Sector Excellence Awards celebrate outstanding campaigns,
strategies, projects and performance, backed up by success across the third
sector, including organisations such as registered charities, not-for-profits,
social enterprises and campaigning groups. Winners from the 2012 Awards
ceremony included:
Annual Report Cardboard Citizens: Our Journey
Brand Development Blind Veterans UK: From St Dunstans to Blind
Veterans UK
Communications Campaign British Heart Foundation: Hands-only CPR
Communications Team Reprieve
Use of Digital Media Diabetes UK: iPhone App
Website Merlin/Convio: Creating a modern website for the modern donor
Direct Marketing Campaign The World Society for the Protection of
Animals (WSPA) UK: Animal Protector, a new committed giving product
Fundraising Event Shelter: Vertical Rush at Tower 42
Fundraising Team Alzheimers Society/Alzheimer Scotland/Tesco
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Innovation in Fundraising Giveacar

Financial Management Kent Union: Improving financial management
Enterprise Blue Sky Development & Recognition
Charity Partnership Prison Radio Association and Victim Support: Face to
Face
Corporate Partnership Mencap, ENABLE Scotland and The Co-operative:
The Co-operative Charity of the Year with Mencap and ENABLE Scotland
Public Sector Partnership Tenovus, National Health Service (NHS) Wales,
Welsh Government: The Worlds First Mobile Lymphoedema Clinic
Volunteer of the Year (joint winners) Meningitis Trus: Alex Williams; and
The Brain Tumour Charity: Hannah Louise Jones Fund, The Brain Tumour
Charity
Best Employer Pheonix Futures
Charity Chair of the Year Survivors Fund (SURF): Lilane Umubyeyi
Small Charity, Big Achiever Childrens University (CU) Trust
The Third Sector Big Impact Award Social Enterprise UK: Public Services
(Social Value) Act 2012
The Luke FitzHerbert Lifetime Achievement Award Clore Social Leadership
Programme: Dame Mary Marsh, Director.
ASSOCIATIONS AND UMBRELLA ORGANISATIONS

Association of Charitable Foundations
The Association of Charitable Foundations (ACF) was originally established in
1989 to provide support to grant-making trusts and foundations of all types
across the UK. The ACF currently has a membership of around 300, which
includes a number of large independent foundations, local and community
trusts, family trusts, corporate foundations and broadcasting appeals.
Members of the ACF also include organisations involved in research, policy and
influencing work, venture philanthropy and social investment.
The ACFs main activities include acting as a public face for foundations and
championing their contribution to civil society. The organisation also works
alongside Governments, policy-makers and charity regulators, providing a
platform for its members to voice their perspectives and influence legislation
and key decision-makers within the sector.
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Association of Chief Executives of Voluntary Organisations

The Association of Chief Executives of Voluntary Organisations (ACEVO) is a
leading organisation providing support to chief executives (CEs) working
within the third sector. The Association currently has over 2,000 members
nationwide, and aims to help support, develop, connect and represent third
sector leaders. ACEVO provides a range of services to members including access
to a wide range of professional publications; helpline support covering areas
such as human resources (HR), fundraising and accountancy; and discounted
special services from management consultancy to private medical insurance. It
also hosts a number of events and conferences, and publishes a wide range of
material on behalf of its members.
Association of Fundraising Consultants

The Association of Fundraising Consultants (AFC) was originally set up in 1990
by a group of fundraising consultants to provide a European professional
standard across the sector. As such, AFC members must comply with a strict
code of practice enforced by the AFC, and are accredited to the highest
standards available within the EU. AFC membership is therefore considered to
provide a gold standards within the fundraising consultancy sector.
Charities Aid Foundation

The CAF has been in operation for over 80 years, providing support and advice
to both charitable donors and organisations. The Foundations main mission is
to help motivate society to give ever more effectively, helping to transform
lives and communities around the world. Its main activities focus on facilitating
the most effective support to charities from individual donors; providing
support to companies that work alongside charities and communities, and
help them to engage their employees in charitable activity to achieve greater
impact; providing tailored solutions for charities funding and financial needs,
across banking, investments, fundraising and social investment; and working
to secure supportive legal, fiscal and regulatory conditions for donors, charities
and social enterprises.
Charity Commission
The CC is an independent Government department with the sole responsibility
of registering and regulating charities across England and Wales. The
Commission also acts to encourage confidence across the third sector and hold
charities to account. It regulates charities in a number of ways, including by
only granting charitable status to organisations that can demonstrate that they
meet the criteria for being a charity; ensuring charities meet their legal
requirement to provide information regarding their activities each year;
making searchable information about each charity publicly available;
providing online services and guidance to charities; and by dealing with cases
of malpractice or of misconduct across the industry.
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Charity Finance Directors Group

The Charity Finance Directors Group (CFDG) was originally founded in 1987 in
order to champion best practice in financial management across the voluntary
sector. The Group provides a range of training and development programmes
to help finance managers in providing leading financial strategy and
management to their charities. It has over 2,300 members, which, combined,
manage over 19.3bn representing almost a third of the sectors income.
The CFDG is also highly active in the policy arena, and in education and
training, providing information and support to members and the wider charity
sector. It also works alongside other organisations, regulators and charities to
provide expertise within the regulatory process and to develop best practice
in charity management. In support of this line of work, the organisation has a
presence on various committees and working parties established by
professional bodies and Government departments, such as the APB Public
Sector and Not-for-Profit Committee and the SORP Review Committee.
Directory of Social Change

The Directory of Social Change (DSC) was first established in 1974 and operates
as an independent charity which helps to challenge and create debate around
Government policy, trust funding and other issues which threaten the
independence of smaller charities. The organisations currently works alongside
over 20,000 charities annually through its conferences and training courses on
fundraising, management, organisational and personal development,
communication, finance and law. The DSC also publishes a wide range of
resources for charities, including UK fundraising guides, directories and
websites.
Disasters Emergency Committee

The Disasters Emergency Committee is an umbrella organisation of 14 leading
UK aid charities, which are brought together to raise money and funds for
those in need during particular times of crisis. These include Action Aid, Age
International, the British Red Cross, CAFOD, Care International, Christian Aid,
Concern Worldwide, Islamic Relief, Merlin, Oxfam, Plan UK, Save the Children,
Tearfund and World Vision. Since it was first established in 1963, the DEC has
run a total of 62 appeals and raised more than 1.1bn.
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The Fundraising Standards Board

The Fundraising Standards Board (FRSB) was originally setup in 2006 following
a consultation with a wide range of charitable and Governmental bodies, and
was first launched to the public in February 2007. It is supported by the Office
for Civil Society, the Scottish Government and the Welsh Assembly
Government. The organisation operates as an independent, self-regulatory
body for UK fundraising, and works alongside member charities, suppliers and
the wider charity sector to encourage compliance with best practice in
fundraising. It also helps to boost public confidence in charitable giving and
listens to and resolves disputes or complaints from the public regarding its
members fundraising activities.
The Institute of Fundraising

The Institute of Fundraising is a professional membership body for UK
fundraising, with the mission of supporting fundraisers through leadership,
representation, standards-setting and education. The Institute currently has
around 5,200 individual members, and offers two main types of membership
including Organisational Membership to charitable organisations; and
Corporate Supporter partnerships to companies that supply products or
services to the not-for-profit sector. Services provided by the Institute include
the supply of fundraising training courses and qualifications; the provision of
legal and best practice guidance on fundraising; and the provision of expert
policy lead on fundraising and wider giving. It also hosts a range of one-day
conferences throughout the year for members, which focus on innovation and
best practice regarding fundraising techniques. Its flagship event National
Convention is held every July and is attended by over 2,000 fundraisers each
year.
National Association for Voluntary and Community Action

The National Association for Voluntary and Community Action (NAVCA) is a
national voice of local support and development organisations in England. The
organisation helps to champion and strengthen voluntary and community
action by supporting members, including 160,000 local charities and
community groups, in their work. The NAVCA also provides members with
networking opportunities, specialist advice, support, policy information and
training, while also providing a liaison between local groups and national
Government by influencing both local and national government policy.
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National Council for Voluntary Organisations

The NCVO was originally founded in 1919 as the National Council of Social
Services with the aim of bringing together voluntary bodies and developing
closer relationships with Government departments. The organisation now has
over 10,000 members, ranging from some of the largest charities to the
smallest community organisation. The NCVO provides a range of advice and
support on several issues affecting the sector, including funding and finance,
governance and leadership, and HR and employment. It also undertakes policy
and research work to develop strong evidence on issues effecting the sector;
and provides a range of training and events to help support members.
UK Community Foundations
UK Community Foundations (previously known as the Community Foundation
Network) helps community foundations to develop both individually and
collectively. The first community foundation was founded in 1914 in Ohio in
the US. There are now more than 1,440 community foundations operating in
over 50 countries across the globe.
The organisations main purpose is to build financial and physical resources for
its local communities; to provide a range of services to its donors; to provide
finance and assistance or make investments and grants; and to work together
in community leadership to solve local problems. UK Community Foundations
also develops best practice across its network of foundations, supports UK-wide
partnerships that develop community philanthropy; and channels national
finances and initiatives to help support local causes, while also securing
investments in all of its Community Foundations.
FORECASTS
Key Note predicts that the number of main charities in England and Wales will
continue to rise over the next 5 years, with figures increasing by 5.7% between
2013 and 2017 from 162,340 to 171,554. While medium- to large-sized
enterprises with turnovers of above 10,000 are likely to observe incremental
improvements in terms of volume and value during the forecast period, smaller
organisations with incomes of 10,000 or below are likely to continue to
struggle somewhat over the next few years at least, before returning to growth
from around 2014/2015 onwards, as economic conditions begin to improve.
Despite the drain that the double-dip recession has had on charitable funding
in recent years, along with the pressures resulting from the ongoing public
funding cuts meted out by the Government in recent years, Key Note has
forecast year-on-year growth in terms of total annual income for the sector,
with combined revenue expected to increase by 16.1% during the 5-year
period. The growth of alternative revenue streams other than statutory
sources, such as social investment and retail trading, should help to significantly
boost funding across the charity sector during the forecast period, while a
recovery in economic conditions from 2014/2015 should also help to boost
monetary contributions from individual donors from 2015 onwards.
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in England and Wales by Income Bracket (m), Years Ending
June 2013-2017
2013
2014
2015
Number of
Main Charities
Total Annual
Income (m)
Number of
Main Charities
Total Annual
Income (m)
Number of
Main Charities
Total Annual
Income (m)
0-10,000
69,431
230
69,401
229
69,420
231
10,001-100,000
52,660
1,871
53,110
1,901
54,630
1,999
100,001500,000
20,250
4,470
21,721
4,792
22,533
5,329
501,000-5m
8,228
12,251
8,351
13,003
8,628
13,952
5m+
1,892
40,955
1,901
41,750
1,920
42,937
61,675 157,131
64,448
Income Bracket
Subtotal
Not yet known
Total
152,461
9,879
162,340
59,777 154,484
-
9,891
59,777 164,375
9,781
61,675 166,912
64,448
Table continues...
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June 2013-2017
...table continued
2016
2017
Number of
Main Charities
Total Annual
Income (m)
Number of
Main Charities
Total Annual
Income (m)
0-10,000
69,455
233
69,461
235
10,001-100,000
55,421
2,150
56,110
2,350
100,001500,000
23,710
5,852
25,111
6,199
501,000-5m
8,911
14,522
9,301
15,036
5m+
1,942
44,012
1,970
45,599
66,769 161,953
69,419
Income Bracket
Subtotal
Not yet known
Total
159,439
9,699
169,138
9,601
66,769 171,554
69,419
Source: Key Note
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Fundraising Charities
3. Fundraising Charities
BACKGROUND
Fundraising is an essential part of most charitable organisations activities, and
can involve donations of money or donations of time, i.e. volunteering.
According to the UK Civil Society Almanac, 2013 which is published annually
by the National Council for Voluntary Organisations (NCVO), voluntary
organisations spent around 4.5bn generating funds in 2010/2011, including
2.9bn, which was allocated towards fundraising activities and publicity costs.
These costs include asking for donations and the cost of trading to raise funds.
Overall, therefore, charitable organisations are estimated to spend around
12% of their total income on fundraising and publicity costs. Large and major
voluntary organisations (i.e. those with annual incomes of over 1m) generally
spend the largest amount of money on fundraising and publicity, with the
NCVO estimating this to be between 13% and 14%, depending on the size of
the organisation. However, investment in fundraising activities is extremely
important in terms of generating income, with around 4.44 thought to be
raised for every 1 spent on fundraising by voluntary organisations according
to the NCVO.
In recent years, voluntary income generated via fundraising activities in the
form of donations has suffered due to the double-dip recession, with many
people reducing or stopping their charitable donations to organisations during
this time, following high unemployment and cutbacks to expenditure.
Economic pressures have continued to effect individual charitable giving as a
result, with recent figures compiled by the Charities Aid Foundation (CAF) for
its annual report UK Giving, showing that individual donations dropped by
1.7bn in 2011/2012 to stand at 9.3bn. Despite this, private donations remain
the most significant and most important income stream for many charities
based in the UK, with the CAF estimating that around 28.4 million people give
to charity in a typical month.
Individuals do not only contribute to charities financially, but also personally
through voluntary work, whether this be through fundraising work or by
supporting others. The 2012 Olympic and Paralympic Games, which were held
in London during last summer, is thought to have provided a significant boost
in terms of volunteering across the UK, following the success of the
much-applauded 70,000 Olympics volunteers or Games Makers who helped
out during the event. No doubt the charity sector, along with the Government,
will help to continue to build on the success of the volunteers during the
Games, with a number of legacy projects already in place in the UK.
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Another significant development to have hit the sector has been the
introduction of the introduction of the Small Charitable Donations Act 2012,
which received Royal Assent on 19th December 2012, and was undertaken in
order to make it easier for charities and community amateur sports clubs
(CASCS) easier to claim a Gift Aid-style payment on small cash donations of up
to 20. Elsewhere in terms of policy a quick about-turn was made
regarding the Governments proposed charity tax, which was announced
during the 2012 Budget, and would have provided a significant challenge to
charitable organisations by moving the cap on tax relief for charitable
donations to 50,000 (or 25% of income).
Indeed, many charities have voiced concerns that the Government is not doing
enough to support charitable organisations, with a survey undertaken by PwC
in 2013 revealing that 58% of charities stated that Government measures had
had a negative impact on levels of funding during 2012, with only 7%
reporting an impact that was positive. This comes alongside the noticeable
decline in the public presence of the Big Society originally a leading policy
for the Conservative Government before the 2010 election which has since
been heavily criticised by both the media and individuals operating within the
third sector. Nevertheless, the introduction of the Small Charitable Donations
Act; along with the 80m Government-funded initiative, Community First
which is due to run for 4 years up to 2015 and was created to match
donations made by individuals and companies for the benefit of their local
communities; and initiatives to make it easier to give, for example, via cash
machines, have gone some way towards encouraging individual charitable
donations.
BENEFITS TO DONORS AND CHARITIES

Although, in recent years, the Government has received a high level of criticism
for its lack of good policy regarding charitable giving in the UK, a number of
tax incentives and benefits are provided to donors in order to encourage
funding in this way, as detailed below:
Capital Gains Tax

Capital Gains Tax is a tax on the gain or profit an individual makes when they
sell, give away or otherwise dispose of the assets that they own, e.g. shares or
property. For 2012/2013, the current rate of tax on capital gains has been set
at 18% and 28% for individuals (depending on their total amount of taxable
income and gains); 28% for trustees or personal representatives; and 10% for
gains qualifying for Entrepreneurs Relief (which allows some individuals and
trustees to claim relief on qualifying gains made on the disposal of all or part
of a business and its assets, as well as shares). Some relief from Capital Gains
Tax is, however, usually awarded to individuals making a gift to a charity. This
can lead to individuals donating their assets to charities such as land,
property or shares or selling them to charities at a loss in order to avoid the
high rate of tax under Capital Gains law.
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Charity Funding
Other Tax Relief

A range of tax relief benefits are available to individuals and companies
wishing to donate to charity, including the Gift Aid scheme or via income tax
relief (including income made via earnings from employment, pensions,
interest on savings or income from rentals or a trust). Some relief is also
available for individuals that leave gifts to charities via their will, in the case of
inheritance tax. Companies donating to charity are also eligible for various
forms of tax relief, with current guidelines from HM Revenue & Customs
(HMRC) allowing 5% of the donation amount (up to a maximum of 2,500) to
be claimed back by companies when calculating Corporation Tax; although for
smaller donations made of between 0 to 100, companies can claim back up
to 25% of the donation amount.
A number of tax exemptions and reliefs are also available to charities
themselves, through relief on income and gains, and on profits from some
activities. Furthermore, charities are exempt from Stamp Duty Land Tax when
buying property, as well as on income received from renting out land or
property that is held for charitable purposes. Some charities may also qualify
for VAT reliefs and exemptions. In order to claim such relief, an organisation
must be a registered charity in the UK and be able to prove that their income
goes towards charitable purposes only.
According to HMRC, total tax reliefs for charities increased to 3bn in
2012/2013 up by 5% from 2.85bn in the previous year. Meanwhile, relief
for individual donors was predicted to reach 1.09bn, an increase of 6% on
1.03bn in 2011/2012. In both cases, such increases reflected the ongoing trend
which has constituted a steady growth in recent years.
Gift Aid
Gift Aid has continued to remain one of the most salient reliefs for the charity
sector, with figures compiled by HMRC showing that total repayments under
the Gift Aid scheme (comprising Gift Aid itself and Transitional Relief) was
1.06bn, although this is down by 2% on the previous years figure of 1.08bn.
This fall reflects the effects of the removal of transitional relief, which was
introduced in 2008 and was worth 3 pence (p) for every 1 donation, in order
to allow charities to adjust to the fall in basic rate tax from 22% to 20%, and
which came to an end on 5th April 2011.
The Gift Aid scheme works to increase the value of donations to charities and
CASCS, by allowing them to reclaim basic rate tax on a donation or gift. In order
to make a Gift Aid donation, a donor must make a Gift Aid declaration;
although the introduction of the Small Charitable Donations Act in 2012, which
legislated the Gift Aid Small Donations Scheme (GASDS), is expected to make
it easier for CASCS and eligible charities to claim Gift Aid-style payments on
small cash donations without requiring a declaration from the donor. This
follows extensive campaigning and lobbying in the voluntary sector, following
difficulties accessing Gift Aid on small value donations made to charities.
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Charity Funding
MARKET SIZE
Fundraising
Total Charitable Income from Individual Donors
According to figures compiled by the CAF for its annual UK Giving report,
despite observing increases in 2009/2010 and 2010/2011, total amounts
donated by individuals to charities fell drastically in 2011/2012 by
approximately 15.5% to stand at 9.3bn. This constitutes the largest drop in
the total amount donated since the CAF began its survey back in 2004/2005,
and was even greater than the reduction observed in 2008/2009 of 7.5%
witnessed at the start of the double-dip recession, following the credit crunch.
The decline observed in 2011/2012 is thought to be down to a reduction in the
average amount given by people, which has fallen year-on-year since
2009/2010 and now stands at around 10 (in terms of median average); as well
as reduction in the proportion of people donating to charity, which dropped
to 55% in 2011/2012 compared with 58% in the previous year.
Table 3.1: Total Amounts Donated by Individuals

to Charities (bn), 2007/2008-2011/2012
Donations from
individuals (bn)
% change
year-on-year
2007/
2008
2008/
2009
2009/
2010
2010/
2011
2011/
2012
10.6
9.8
10.6
11.0
9.3
-7.5
8.2
3.8
-15.5
Note: figures are not adjusted for inflation.
Source: UK Giving 2012: An Overview of Charitable Giving in the UK, 2011/2012

Charities Aids Foundation/National Council for Voluntary Organisations
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Charity Funding
The total amounts donated by individuals to charities between 2007/2008 and

2011/2012 is outlined in Figure 3.1. Over the 5-year period, the total amount
donated by individuals to charities fell by 12.3%.
Figure 3.1: Total Amounts Donated by Individuals

to Charities (bn), 2007/2008-2011/2012
11.50
11.25
11.00
10.75
10.50
10.25
10.00
9.75
9.50
9.25
9.00
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
Note: figures are not adjusted for inflation.

Charitable Aids Foundation/National Council for Voluntary Organisations/
Key Note
Average Amounts Donated per Person

Further statistics compiled by the CAF show trends in how the average or mean
amount donated per donor per month has changed since 2007/2008. The
median average provides a more accurate indication of the typical donation
than other types of averages (e.g. mean), as it less influenced by the small
number of larger donations provided. According to the CAFs survey, the mean
amount given has dropped by 1 since 2009/2010, and now stands at around
10. These levels correspond to the average size of donations given in
2007/2008 and 2008/2009, suggesting that the proportion of giving has
returned to a more typical or stable level.
In terms of mean averages, donations per person per month fell by 4 in
2011/2012, from 31 to 27 representing the lowest mean value recorded
since 2004. Although mean values are often subject to fluctuation, a clear
downwards trend is still apparent, considering the decline observed in median
amounts donated during 2011/2012 as well. It is likely that the return to
recession during Q1 2012, alongside continued high levels of unemployment
and inflation, has contributed to this overall downwards trend over the past
year, with many donors likely to have restricted charitable giving due to
over-stretched household budgets.
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Table 3.2: Median and Mean Amounts Given to Charity

per Donor per Month (), 2007/2008-2011/2012
2007/
2008
2008/
2009
2009/
2010
2010/
2011
2011/
2012
Median
amount given
per donor ()
10
10
12
11
10
Mean amount
given per
donor ()
32
30
31
31
27
Note: the mean amount refers to the sum of the amounts given divided by the number
of people giving.

Charities Aid Foundation/National Council for Voluntary Organisations
Figure 3.2 illustrates the mean and median amounts given to charity per month
in the UK between 2007/2008/ and 2011/2012.
Figure 3.2: Median and Mean Amounts Given to Charity

per Donor per Month (), 2007/2008-2011/2012
35.0
Median
32.5
Mean
30.0
27.5
25.0
22.5
20.0
17.5
15.0
12.5
10.0
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
Note: the mean amount refers to the sum of the amounts given divided by the number
of people giving.

Charitable Aid Foundation/National Council for Voluntary Organisations/Key
Note
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Top 20 UK Charities by Voluntary Income

According to statistics compiled by the CAF, Cancer Research UK registered the
highest level of voluntary income at 350.1m as of June 2013, which accounted
for around 71.1% of the organisations total income. The Save the Children
Fund registered the second-highest voluntary income at 321.1m; followed by
The British Council with 184.1m and The Royal National Lifeboat Institution
with 148.1m.
Within the Top 20 charities in the UK in terms of voluntary income, the
proportion of total income represented by voluntary donations differed
significantly, from a low of 24.9% for the British Council to almost all income
(99.9%) for the British Educational Communications and Technology Agency
and The Cup Trust, both of which rely almost completely on income from
fundraising and individual donors.
Table 3.3: The Top 20 Charities in the UK by Voluntary Income

and Total Income (000 and %), June 2013
Voluntary
Income (000)
Total
Voluntary
Income Income as a %
(000)
of Total
Charity
Cancer Research UK
350,080
492,627
71.1
321,068
332,881
96.5
The British Council
184,084
738,502
24.9
The Royal National Lifeboat

Institution
148,076
172,690
85.7
CITB Construction Skills
144,414
253,059
57.1
Macmillan Cancer Support
140,459
144,530
97.2
The British Red Cross Society
131,500
213,800
61.5
Oxfam
129,700
385,500
33.6
The Rothschild Foundation
123,921
133,674
92.7
NSPCC
114,423
135,703
84.3
Charity Projects
101,578
121,511
83.6
RSPCA
100,745
116,200
86.7
The Salvation Army
97,910
149,546
65.5
94,181
233,398
40.4
RSPB
92,883
119,677
77.6
The United Kingdom

Committee for UNICEF
92,389
95,013
97.2
Table continues...
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Table 3.3: The Top 20 Charities in the UK by Voluntary Income

and Total Income (000 and %), June 2013
...table continued
Voluntary
Income (000)
Total
Voluntary
Income Income as a %
(000)
of Total
Charity (cont.)
Christian Aid
88,768
95,453
93.0
British Educational
Communications and
Technology Agency
80,390
80,418
99.9
The Cup Trust
78,934
78,942
99.9
Marie Curie Cancer Care
76,186
138,405
55.0
CITB Construction Industry Training Board

NSPCC National Society for the Prevention of Cruelty to Children
RSPCA Royal Society for the Prevention of Cruelty to Animals
RSPB Royal Society for the Protection of Birds
Source: Key Note based on data from Charities Aid Foundation,

www.charitytrends.org, accessed June 2013
Sources of Income in the Voluntary Sector by Subsector

Table 3.4 shows the sources of income relied upon by charities according to
subsector. While many subsectors, such as employment and training, umbrella
bodies and social services, were found to rely heavily on income from statutory
sources, income from individuals remained the most important source of
income across the breadth of the sector, with over 10% of income within each
subsector generated by personal charitable donations, suggesting that
fundraising has continued to remain a key activity for the majority of charitable
organisations regardless of their cause.
Parent-teacher associations were found to rely the most on individual
donations, with 83.6% of income within this subsector generated in this way,
followed by religion (66.1%), environmental charities (64.7%) and village halls
(60.3%). These particular subsectors are generally more likely to have a more
significant presence in local communities rather than nationally, which goes
some way towards explaining their heavy reliance on individual donations.
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Table 3.4: Income Sources by Subsector (% of total income),

2010/2011
Statutory
Sources
Individual
Voluntary
Sector
Investment
Private
Sector
National
Lottery
Employment and
training
72.5
16.3
3.9
1.5
5.0
0.8
Umbrella bodies
53.8
20.2
11.7
3.2
6.6
4.5
Social services
52.8
35.0
5.7
3.4
2.3
0.8
Development
48.6
31.1
9.6
5.1
3.9
1.6
Law and advocacy
46.8
34.1
9.5
1.4
6.1
2.1
Playgroups and
nurseries
46.2
45.2
4.3
1.0
3.2
0.0
Health
43.2
45.0
5.1
2.8
2.7
1.1
Housing
43.2
34.6
7.5
13.0
1.0
0.6
Education
38.2
39.7
12.6
5.1
3.3
1.0
International
32.5
42.5
19.9
1.2
3.4
0.5
Culture and
recreation
25.2
55.6
8.2
3.7
3.9
3.3
Scout groups and

youth clubs
24.5
59.8
8.6
5.1
1.0
1.0
Environment
19.0
64.7
6.7
4.0
4.2
1.4
Religion
11.7
66.1
7.1
12.6
1.7
0.7
Research
9.5
52.8
9.4
15.3
12.6
0.3
Village halls
8.8
60.3
26.8
3.4
0.4
0.4
Grant-making
foundations
7.7
47.0
6.8
24.2
14.3
0.1
Parent-Teacher
associations
4.8
83.6
5.4
5.1
0.8
0.2
Source: Third Sector Research Centre/Charity Commission/UK Civil Society

Almanac, 2013 National Council for Voluntary Organisations
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Charity Funding
Volunteering
Volunteering provides another means through which people can give to
charities, with many people opting to donate their time rather than, or as
well as, their money to charities in the form of unpaid work, e.g. by helping
out at fundraising events or by providing services free-of-charge, such as
counselling.
Although volunteering has shown a decline since 2005, recent figures
produced by the Cabinet Office and published in February 2013 show a
resurgence in volunteer work of late. The success of volunteers or Games
Makers during the 2012 London Olympic and Paralympic Games, along with
a number of Government-backed schemes aimed at encouraging volunteering
in the UK, are thought to have helped in promoting volunteering across the
country in recent months. According to the figures, the proportion of people
volunteering at least once a year has increased from 65% in 2010 and 2011, to
71% in 2012, with 45% of people volunteering formally and 61% volunteering
informally. Statistics compiled by the NCVO suggest that this equates to around
22.7 million adults formally volunteering at least once a year in the UK.
The 2012 Olympic and Paralympic Games are thought to have played a large
part in the increasing interest now emerging for volunteer work, with around
120,000 people volunteering during the Games. The success of the Games
Makers was well-publicised and heralded in the press and by the Government
following the event, and the success of the Games themselves is thought to
have boosted community spirit across the country, with the Cabinet Office
survey showing that 79% of people stated they felt they belonged strongly to
their neighbourhood.
It is hoped that the boost provided to the volunteer sector following the Games
will continue to be built on in the future via the Governments legacy
programme, Join In, which is aimed at encouraging people to help out at local
sports clubs and community groups across the UK. Other schemes backed by
the Government, such as the National Citizen Service, which promotes
volunteer work in the local community among 16 to 17 year-olds in England,
as well as its recent campaign to recruit 1 million volunteers to support people
with dementia which is being run in conjunction with the Alzheimers
Society during 2013 are also expected to boost engagement with
volunteering projects across the country over the next few years.
Despite the upwards trend emerging in unpaid volunteering, the most recent
figures produced for the Labour Force Survey show that the number of paid
employees working within the voluntary sector had fallen in 2011 by 4.3%
from 765,000 to 732,000. However, previous to this, relatively strong
year-on-year growth was observed, with figures rising by 19.2% between 2007
and 2010. In addition, any deficit of paid workers within the voluntary sector,
may well be covered by the estimated increase in unpaid voluntary workers
over the past couple of years.
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Table 3.5: Total UK Voluntary Sector Paid Workforce

(number and %), 2007-2011
Number of
employees
% change
year-on-year
2007
2008
2009
2010
2011
642,000
668,000
721,000
765,000
732,000
4.0
7.9
6.1
-4.3
Source: Labour Force Survey, National Statistics Crown copyright
The total UK voluntary sector paid workforce between 2007 and 2011 is
illustrated in Figure 3.3.
Figure 3.3: Total UK Voluntary Sector Paid Workforce

(number and %), 2007-2011
750,000
725,000
700,000
675,000
650,000
2007
2008
2009
2010
2011
Source: Labour Force Survey, National Statistics Crown copyright/Key Note
Key Note Ltd 2013
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CONSUMER RESEARCH
Fundraising
Donating
Statistics compiled by Kantar Media for its Target Group Index (TGI) survey
panel regarding giving to charities, show that the proportion of adults
donating to charities in the UK continued to fall year-on-year between 2010
and 2012, from 70.1% to 67.1%. Women were generally more likely to give to
charity than men, with 72.3% donating compared with 61.6% of men in 2012.
Giving was found to increase sequentially alongside age, with 48.1% of those
aged 15 to 19 years old donating, compared with almost double (84.3%) of
adults aged 65 and over. An upwards trend was also observed alongside social
grade unsurprisingly, those in higher social grades, i.e. A, B and C1, who
generally have a higher level of disposable income, were much more likely to
donate to charity than those in lower social grades, e.g. C2, D and E.
Regionally, those living in East Anglia were found to be the most likely financial
donors to charities, with 74.2% of adults residing here donating money in the
year ending December 2012. In contrast, the region with the lowest proportion
of donating adults was the North West, where only 64.5% were found to have
given to charity over the 12 months ending December 2012.

in the Last 12 Months (% of adults), 2010-2012
2010
2011
2012
70.1
69.1
67.1
Men
66.3
64.2
61.6
Women
73.8
73.8
72.3
15-19
47.7
50.4
48.1
20-24
47.6
48.0
44.4
25-34
60.9
57.6
55.1
35-44
73.1
68.5
64.8
45-54
75.2
72.7
70.5
55-64
76.6
78.5
77.1
65+
84.0
84.7
84.3
All adults
Sex
Age
Table continues...
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in the Last 12 Months (% of adults), 2010-2012
...table continued
2010
2011
2012
83.1
81.4
77.0
81.6
78.4
74.9
C1
71.0
70.1
69.6
C2
66.6
67.5
65.5
60.8
59.6
56.6
56.0
57.0
56.9
Scotland
71.1
71.0
69.8
North West
68.0
70.5
64.5
North
69.4
66.7
66.0
Yorkshire and Humberside
67.8
66.9
64.0
East Midlands
69.9
66.0
72.3
East Anglia
70.9
68.4
74.2
South East
74.3
73.5
69.9
Greater London
62.4
61.6
55.4
South West
76.4
72.0
72.9
Wales
70.1
70.8
69.3
West Midlands
69.7
69.6
66.6
Social Grade
Region
Source: Target Group Index (TGI) Kantar Media, Quarter 2 (January-December)

2011-2013
Amount Donated
In terms of donation size, the highest proportion of adults gave relatively small
amounts to charity of between 10 and 25, with 16% of respondents found
to have done so over the last 12 months. In contrast, only 1% of respondents
gave high amounts of between 200 and 249, although a slightly higher
proportion (2.4%) gave donations of 250 or more during the year ending
December 2012. Once again, a higher proportion of women were found to
donate to charity across almost all donation size categories, with the exception
of donations of 250 or more, where the same proportion (2.4%) of both men
and women were found to have donated.
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Generally, younger respondents were found to donate smaller amounts of

money to charity than older people, with 4.5% of adults aged 65 or over
donating high amounts of 250 or more, compared with just 0.2% of adults
aged between 15 and 19 years old. In terms of social grade, those in more
affluent social groups were bigger donators than those in poorer social grades,
due to their higher disposable incomes. Regionally, those in more affluent
areas, such as East Anglia (4.4%) and Greater London (3.1%) were most likely
to donate higher amounts to charity, i.e. 250 or more, while those living in
areas, such as the West Midlands (9.4%) and the East Midlands (9.3%) were
the most likely to donate smaller amounts, e.g. less than 5, to charity.
Table 3.7: Proportion of Adults Donating to Charity by Size

of Donation in the Last 12 Months (% of adults), 2012
2010
2011
2012
70.1
69.1
67.1
Men
66.3
64.2
61.6
Women
73.8
73.8
72.3
15-19
47.7
50.4
48.1
20-24
47.6
48.0
44.4
25-34
60.9
57.6
55.1
35-44
73.1
68.5
64.8
45-54
75.2
72.7
70.5
55-64
76.6
78.5
77.1
65+
84.0
84.7
84.3
83.1
81.4
77.0
81.6
78.4
74.9
C1
71.0
70.1
69.6
C2
66.6
67.5
65.5
60.8
59.6
56.6
56.0
57.0
56.9
All adults
Sex
Age
Social Grade
Table continues...
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Table 3.7: Proportion of Adults Donating to Charity by Size

of Donation in the Last 12 Months (% of adults), 2012
...table continued
2010
2011
2012
Scotland
71.1
71.0
69.8
North West
68.0
70.5
64.5
North
69.4
66.7
66.0
67.8
66.9
64.0
East Midlands
69.9
66.0
72.3
East Anglia
70.9
68.4
74.2
South East
74.3
73.5
69.9
Greater London
62.4
61.6
55.4
South West
76.4
72.0
72.9
Wales
70.1
70.8
69.3
West Midlands
69.7
69.6
66.6
Region
Source: Target Group Index (TGI) Kantar Media, Quarter 2 (January

2012-December 2012) 2013
Methods of Donation
The most popular method of donation when making a payment to a charity
was found to be collection boxes, with almost a fifth (19.4%) making a
donation in this way during the 12 months ending December 2012. Other
popular donation channels included via direct debit (12.3%), sponsoring a
fundraising event (using cash or cheque), and sending money by cheque or
cash directly to the charity (8%). Interestingly, the only category in which men
registered a higher proportion of giving than women, was donating via a wage
or salary scheme, with 1.4% of men giving in this way, compared with 0.8% of
women.
Generally, giving via collection boxes was the most popular method across all
age groups. However, those belonging to older age categories, (i.e. 65 years
old and over) were also found to be the most likely to use direct debit (18.1%),
cash or cheque (18.8%) and the telephone to make payments to charities
(1.7%). Other methods of donation, such as text messaging and sponsoring a
fundraising event via the Internet, were found to be more popular among
middle age groups, (i.e. those aged 25 to 44 years old).
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Those in more affluent social grades registered higher proportions of giving

across all payment categories. However, greater diversity was apparent in
terms of region, with people in East Anglia and the South East more likely to
favour methods, such as direct debit, direct payment via the Internet, text
messaging, sponsoring a fundraising event (via cash or cheque), and
sponsoring a fundraising event via the Internet. Meanwhile, those living in
Yorkshire and Humberside registered the highest penetration for contributing
through a wage or salary, while those living Wales registered higher
penetrations for direct payments by cash or cheque and making donations via
the telephone.
Table 3.8: Proportion of Adults Donating to Charity by Payment

Method Used in the Last 12 Months (% of adults), 2012
200-249
150-199
101-149
76-100
76-100
51-75
10-25
5-9
Less Than 5
1.0
1.3
4.0
5.2
5.2
5.1 10.1 16.0
8.3
7.2
Men
2.4
0.9
1.1
3.6
5.0
5.0
4.9
9.9 14.9
6.8
6.2
Women
2.4
1.1
1.4
4.4
5.3
5.3
5.4 10.2 17.1
9.6
8.2
15-19
0.2
1.0
0.4
0.7
2.9
2.9
2.0
5.6 11.4
9.0 11.9
20-24
0.3
0.2
0.3
1.9
2.0
2.0
3.0
4.2 12.8
9.4
8.5
25-34
1.5
0.5
0.6
1.5
3.8
3.8
3.6
8.9 15.4
8.0
7.2
35-44
2.3
0.6
0.9
3.7
5.5
5.5
5.2 10.5 17.1
7.0
6.9
45-54
2.3
0.9
1.5
4.8
6.3
6.3
5.9 10.1 16.5
8.7
7.0
55-64
2.9
1.3
1.9
6.7
6.1
6.1
6.7 11.5 16.2
8.1
6.9
65+
4.5
1.7
2.1
5.9
6.5
6.5
6.5 13.5 18.1
8.5
5.6
7.2
2.1
2.1
8.4
6.5
6.5
8.8
8.8 13.1
4.9
3.5
4.8
1.7
2.1
6.2
7.1
7.1
5.5 12.1 15.1
5.9
4.1
C1
2.2
0.8
1.4
4.1
5.7
5.7
6.6 11.7 17.1
7.7
7.0
C2
1.2
0.5
0.8
3.0
4.5
4.5
4.0 10.0 17.2
9.9
8.9
0.6
0.8
0.6
1.7
3.7
3.7
3.7
6.6 14.7 10.5
9.3
0.8
0.3
0.7
2.6
2.5
2.5
3.1
6.6 16.0
9.3
26-50
250 or More
2.4
All adults
Sex
Age
Social Grade
9.5
Table continues...
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Table 3.8: Proportion of Adults Donating to Charity by Payment

Method Used in the Last 12 Months (% of adults), 2012
...table continued
200-249
150-199
101-149
76-100
76-100
51-75
10-25
5-9
Less Than 5
2.6
0.9
0.9
3.9
4.3
4.3
4.0 10.1 20.3
7.8
7.3
North West
1.6
0.8
1.3
3.2
4.6
4.6
5.7 10.6 16.1
8.4
6.5
North
1.1
1.2
1.4
4.3
4.8
4.8
4.1
8.0 16.4 11.0
7.8
Yorkshire and
Humberside
1.4
0.8
1.0
3.6
4.9
4.9
5.1
8.2 14.7 10.8
8.8
East Midlands
1.9
1.0
0.8
4.6
5.7
5.7
4.7
9.4 17.8
9.9
9.3
East Anglia
4.4
0.8
1.7
5.7
4.3
4.3
6.5 11.2 18.2
7.9
6.9
South East
2.8
1.7
1.8
4.7
5.4
5.4
5.6 11.0 15.4
7.6
6.2
Greater
London
3.1
0.7
0.9
2.5
5.8
5.8
4.0
8.7 13.7
5.8
4.5
South West
3.0
0.8
1.1
4.3
6.7
6.7
5.3 11.6 16.5
8.3
8.6
Wales
2.1
0.4
0.8
4.3
5.1
5.1
6.3 11.6 16.6
7.9
6.9
West
Midlands
1.9
0.6
1.8
4.2
4.5
4.5
5.5
8.5
9.4
26-50
250 or More
Scotland
Region
9.8 14.4

2012-December 2012) 2013
Motivation
The most popular motivation behind donating to charity was someone
collecting in the street or calling at a household, with 22.1% of adults revealing
that they had given to charity for this reason. Other popular reasons for
donating including fundraising by a friend, a colleague or by themselves
(19.8%) and advertising appeals made on televisions (11.9%). While women
registered higher penetrations across the majority of categories listed in Table
3.10, men reported higher penetrations for advertising appeals in newspapers/
magazines and advertising appeals made via the Internet.
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While motivations such as Internet appeals and social networking website

appeals were more popular among younger age groups, among those in the
middle age groups (i.e. those aged between 35 and 54 years old), respondents
were more likely to favour television and radio appeals, as well as fundraising
by friends, colleagues or themselves. In contrast, older age categories were
found to be more in favour of advertising appeals in newspapers and
magazines, street collections or home calls, and direct mailing appeals.
As in other consumer research undertaken regarding charitable giving by
Kantar Media (see above), those belonging to more affluent social grades (i.e.
A, B and C1) generally registered higher penetrations across all categories in
terms of motivation. Regionally, however, the results were more diverse
those residing in Scotland were found to be more in favour of donating
because of television appeals, advertising in newspapers and magazines, street
collections and home calls, and because of a news or current affairs report,
while those in East Anglia and the South East were more likely to be swayed
to donate by social networking website appeals and those in the East Midlands
by advertising appeals on the Internet. Meanwhile, respondents living in the
South West were found to be more encouraged to donate to charity by appeals
made via the radio, direct mailing to their home, fundraising by friends/
colleagues/themselves, and via a news or current report.
Table 3.9: Proportion of Adults Donating to Charity

by Motivation in the Last 12 Months (% of adults), 2012
Advertising Appeals
on Radio
Advertising Appeals in
Newspapers/Magazines
A Direct Mailing to
Your Home
Fundraising by Friends/
Colleagues/Yourself
News/Current
Affairs Reports
Social Network
Website
Other
1.4
2.0
1.4
22.1
7.2
19.8
5.4
0.9
29.9
Men
10.1
1.4
2.2
1.5
18.6
6.0
16.3
4.8
0.8
28.9
Women
13.5
1.5
1.8
1.3
25.6
8.3
23.2
6.0
1.0
30.9
15-19
11.8
1.6
1.6
2.4
13.9
1.0
15.9
3.2
1.5
18.7
20-24
8.4
1.3
1.1
3.2
12.4
0.8
12.3
3.3
2.0
20.4
25-34
9.9
1.7
0.7
1.4
14.6
1.6
19.3
3.6
1.4
23.4
Someone Collecting in
the Street/Calling at
Your Home
Advertising Appeals
on Internet
Advertising Appeals
on Television
11.9
All adults
Sex
Age
Table continues...
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...table continued
Advertising Appeals
on Radio
A Direct Mailing to
Your Home
Colleagues/Yourself
News/Current
Affairs Reports
Social Network
Website
Other
13.8
1.2
1.5
1.3
19.1
2.8
22.7
4.8
0.8
29.7
45-54
13.6
1.9
1.9
1.1
22.9
4.3
20.7
7.0
0.7
33.3
55-64
12.2
1.3
2.3
1.0
28.5
8.5
22.9
6.9
0.6
37.7
65+
11.6
1.1
3.8
0.8
32.3
21.1
19.5
6.8
0.2
34.9
9.2
0.3
3.6
1.1
21.5
8.5
27.2
10.8
0.5
39.3
14.8
2.5
2.5
1.5
22.4
9.6
25.6
10.0
1.1
36.2
C1
12.2
1.2
1.9
1.5
22.7
7.4
22.4
5.4
1.4
31.3
C2
11.6
1.2
1.9
1.3
22.7
6.4
17.2
3.0
0.5
27.2
9.0
1.3
1.4
1.1
21.3
4.6
13.8
2.3
0.6
23.7
10.2
0.9
1.5
1.1
20.2
6.4
11.1
2.9
0.6
22.9
Scotland
13.9
1.2
2.9
1.6
26.2
6.9
21.3
6.8
0.4
28.3
North West
12.9
1.4
1.9
0.7
20.0
6.5
18.9
4.3
1.4
27.1
North
12.0
0.7
1.6
1.0
23.5
7.1
17.7
2.9
1.0
29.4
Yorkshire
and
Humberside
11.6
1.5
1.2
1.6
20.2
6.7
19.4
3.8
0.6
29.9
East
Midlands
14.0
1.0
2.7
2.1
23.0
8.0
21.3
6.0
0.7
30.8
East Anglia
11.0
0.9
2.0
0.9
26.0
8.3
20.7
6.5
1.3
34.5
South East
10.7
1.8
2.3
1.9
23.5
7.9
21.7
5.6
1.4
33.7
Your Home
Advertising Appeals
on Internet
Advertising Appeals
on Television
35-44
Age (cont.)
Social Grade
Region
Table continues...
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...table continued
A Direct Mailing to
Your Home
Colleagues/Yourself
News/Current
Affairs Reports
Social Network
Website
Other
1.7
1.2
15.6
5.8
15.8
6.2
0.7
25.1
South West
12.4
2.2
2.3
1.3
25.9
8.4
22.7
6.8
0.8
31.6
Wales
11.8
1.7
1.2
0.3
22.8
7.8
21.6
5.6
1.0
31.1
West
Midlands
12.8
1.9
1.3
0.9
21.8
6.2
17.3
4.7
0.4
28.5
Your Home
Advertising Appeals
on Internet
Advertising Appeals
on Radio
0.7
Advertising Appeals
on Television
9.4
Region (cont.)
Greater
London

2012-December 2012) 2013
Volunteering
Proportion of Volunteers in England
According to the Community Life Survey, which was undertaken by the Cabinet
Office during 2012/2013, the proportion of people volunteering both
formally and informally increased during 2012, following a slight dip in
numbers during 2009/2010 and 2010/2011. This resulted in an increase in the
total percentage of people volunteering in England at least once a month
which rose from 41% in 2010/2011 to 49% in 2012 and a rise in the
proportion of people volunteering at least once a year which increased from
65% to 71% over the same time period.
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Despite dropping between 2007/2008 and 2009/2010, informal volunteering at

least once a month increased significantly between 2010/2011 and 2012 from
29% to 35%. A similar trend was observed in informal volunteering at least
once a year, which began to increase from 2009/2010 onwards to stand at 61%
in 2012. The percentage of people formally volunteering also increased over
the past year, with those volunteering at least once a month rising from 25%
in 2010/2011 to 30% in 2012, while those volunteering at least once a year
increased from 39% to 45% during the same period. These increases are likely
to have been driven by the return to some economic stability towards the end
of 2012, with the UK formally exiting recession in Q3 2012. A concerted push
by the Government to encourage volunteering across the country following
the success of volunteers at the Olympic and Paralympic Games, along with
other Government initiatives aimed at attracted volunteers to the charity
sector, are also likely to have helped matters somewhat over the past year.
Table 3.10: Percentage of People Who Had Engaged in Informal

and Formal Volunteering At Least Once a Month or At Least
Once in Last Year (% of respondents), 2007/2008-2012/2013
2007/
2008
2008/
2009
2009/
2010
2010/
2011
2012/
2013
At Least Once
a Month
At Least Once
in Last Year
At Least Once
a Month
At Least Once
in Last Year
At Least Once
a Month
At Least Once
in Last Year
At Least Once
a Month
At Least Once
in Last Year
At Least Once
a Month
At Least Once
in Last Year
Informal
volunteering
35
64
35
62
29
54
29
55
35
61
Formal
volunteering
27
43
26
41
25
40
25
39
30
45
Any
volunteering
48
73
47
71
42
66
41
65
49
71
giving unpaid help as an individual to people who are not relatives

giving unpaid help through groups, clubs or organisations
participated in either formal or informal volunteering
Note: data for 2007/2008 to 2010/2011 was provided by the Citizenship Survey (which has
since been renamed the Community Life Survey, with responsibility shifted to the Cabinet
Office) and refers to survey data collected between April to March throughout each
period, i.e. April 2007-March 2008, etc.; data for 2012/2013 covers the period between
August 2012-January 2013.
Source: Community Life Survey, Q2 and Q3 2012-2013 (August 2012-January

2013), Cabinet Office Crown copyright
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Charity Funding
By Demographic
According to the Community Life Survey undertaken by the Cabinet Office in
2012/2013, 45% of people took part in formal volunteer work over past
12 months ending January 2013. A slightly higher proportion of women were
found to have participated in formal volunteering than men, at 46% compared
with 44%. In terms of age, participation was greatest among those aged
between 35 and 49 years old, at 51%, and lowest among those aged 75 and
over. Regionally, participation was highest in the South East (51%) and South
West (58%), but lowest among those living in the North West (34%).
Table 3.11: Participation in Formal Volunteer Work in the Past

12 Months by Sex, Age and Region (% of respondents),
2012/2013
All
45
Sex
Male
44
Female
46
Age
16-25
44
26-34
42
35-49
51
50-64
46
65-74
44
75+
34
Region
North East
42
North West
34
41
East Midlands
49
West Midlands
41
East of England
49
Greater London
41
South East
51
South West
58
Note: covers the period between August 2012-January 2013.
Source: Community Life Survey, Q2 and Q3 2012-2013 (August 2012-January

2013), Cabinet Office Crown copyright
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Charity Funding
Volunteering Activities
Formal Volunteering by Activity
According to the Citizenship Survey, which was last undertaken by the
Department for Communities and Local Government (DCLG) in 2008/2009, the
most popular formal volunteering activity undertaken in the last 12 months
preceding the survey was organising or helping to run an activity or event, with
over half (59%) of respondents having participated in this particular type of
activity. Other popular formal volunteering activities undertaken included
raising or handling money or taking part in a sponsored event (52%), other
practical help (37%), and leading a group or being a member of a committee
(36%).

at Least Once a Month in the Last 12 Months
(% of respondents), 2008/2009
% of Respondents
Activity
Organising or helping to run an activity or
event
59
Raising or handling money/taking part in

a sponsored event
52
Other practical help
37
Leading the group/member of a

committee
36
Providing transport/driving
26
Giving information/advice/counselling
25
Visiting people
23
Befriending or mentoring people
21
Table continues...
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...table continued
% of Respondents
Activity (cont.)
Secretarial, clerical or admin work
21
Representing
17
Campaigning
10
Any other activities
11
Note: these figures are taken from the Citizenship Survey, which has since been replaced
by the Community Life survey. Figures for 2008/2009 have been provided as the
Community Life survey has not yet released equivalent results for the activities that
volunteers undertake.
Base: all core sample respondents in England who volunteered formally at least once a
month (2,271).
Source: Citizenship Survey, 2008/2009, Communities and Local Government

Crown copyright
Informal Volunteering by Activity

The 2008/2009 Citizenship Survey also analysed the most popular informal
volunteering activities undertaken in England at least once a month, over the
12 months preceding the survey. The results of the survey revealed that giving
advice was the most popular activity undertaken by informal volunteers, with
almost half (45%) participating in this type of activity. Other popular informal
volunteering activities included keeping in touch with someone (37%),
transporting or escorting someone (36%), looking after a property or a pet
(33%), and doing shopping or collecting pensions on behalf of someone (31%).
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Table 3.13: Informal Volunteering Activities Undertaken

% of Respondents
Activity
Giving advice
45
Keeping in touch with someone
37
Transporting or escorting someone
36
Looking after property or pet
33
Doing shopping, collecting pension
31
Babysitting or caring for children
30
Writing letters, filling in forms
25
Cooking, cleaning, laundry
23
Decorating, home improvement
17
Representing someone
10
Sitting with/providing personal care
Any other activities
Base: all core sample respondents in England who volunteered informally at least once a
month (3,104).

Crown copyright
Types of Organisations Helped

Organisations engaged in providing sports/exercise activities were found to be
the most popular to help out among formal volunteers, with just over half
(52%) revealing that they had volunteered at this particular type of
organisation. Hobbies, recreation/arts/social clubs registered the
second-highest penetration, at 40%, followed by childrens education/schools
(34%), religious organisations (33%) and youth/childrens activities (outside
school [33%]).
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Charity Funding
Table 3.14: Types of Organisations Helped by Regular Formal

Volunteers (% of respondents), 2008/2009
% of Respondents
Organisation Helped
Sport/exercise (taking part,
coaching or going to watch)
52
Hobbies, recreation/arts/social
clubs
40
Childrens education/schools
34
Religion
33
Youth/childrens activities (outside

school)
33
Health, disability and social welfare
27
Local community or
neighbourhood groups
23
The environment, animals
20
Education for adults
18
The elderly
16
Citizens groups
11
Safety, first aid
10
Trade union activity
Justice and human rights
Politics
Other
17
month (2,271).

Crown copyright
Key Note Ltd 2013
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Charity Funding
Sources of Information for Formal Volunteers

The majority (56%) of regular formal volunteers heard about the organisations
that they helped from someone else already involved in the group. Other
popular sources of information for regular formal volunteers included by word
of mouth or from a friend not involved in the group (24%); via school, college
or university (24%); and through previous use of the services provided by the
group (22%).
Table 3.15: Most Common Sources of Information for Regular

Formal Volunteers (% of respondents), 2008/2009
% of Respondents
Sources of Information
From someone else already involved in the
group
56
From a friend not involved in the group/by

word of mouth
24
School, college, university
24
Through previously using services

provided by the group
22
Place of worship
21
Local newspaper
Local events
Internet/organisational website
Promotional events/volunteer fair
Library
Other way
Community centre
Doctors surgery
Employers volunteering scheme
Volunteer bureau or centre
Television or radio (local or national)
Set up the club
Work
National newspaper
Table continues...
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Table 3.15: Most Common Sources of Information for Regular

Formal Volunteers (% of respondents), 2008/2009
...table continued
% of Respondents
Sources of Information (cont.)
Careers centre/careers fair
Advertisements
Approached the club
Millennium volunteers
month (2,271).

Crown copyright
Motivation
The most popular reason for volunteering formally was to improve things or
help people, with almost two-thirds (62%) of respondents agreeing that this
was the case. Two-fifths (40%) revealed that they had offered to volunteer
formally because the cause had personal importance to them, while a third
revealed that they had started volunteering because they had the spare time
available or because they wanted to meet people/make friends (both 33%).
Table 3.16: Motivation for Volunteering for Regular Formal

% of Respondents
Motivation
I wanted to improve things/help people
62
The cause was really important to me
40
I had spare time to do it
33
I wanted to meet people/make friends
33
Table continues...
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Charity Funding
Table 3.16: Motivation for Volunteering for Regular Formal

...table continued
% of Respondents
Motivation (cont.)
I thought it would give me a chance to use
my existing skills
32
I felt there was a need in my community
28
It was connected with the needs of my

family/friends
25
Its part of my philosophy of life to help

people
25
I thought it would give me a chance to learn

new skills
20
My friends/family did it
19
Its part of my religious belief to help

people
17
I felt there was no one else to do it
12
It helps me get on in my career
I had received voluntary help
It gave me a chance to get a recognised

qualification
month (2,271).

Crown copyright
MARKETING ACTIVITY
The double-dip recession and ongoing cuts to public sector served to severely
restrict charities marketing budgets of late, with many cutting back on
mainstream national advertising campaigns and seeking out alternative
channels of communication, such as social media or video/content-sharing
websites which are often cheaper to set up and manage in order to appeal
to new audiences and, in particular, younger members of society.
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The past few years have seen an enormous upsurge in the use of mobile
technology and social media and, as such, marketers across various sectors of
industry have been keen to try their hand at developing their online brand
presence and social networking profile in order to reach the widest possible
audience. Not only this, but the level of personal data held via social
networking sites has improved the ability of organisations to target specific
social groups via Internet advertising campaigns. Charities have been no
exception to the trend, with a recent report published by Visceral Business for
its Charity Social 100 Index, which studied how charities use social media during
the 6-month period ending September 2012, showed that charities in the UK
had doubled their support on key social media channels over the past year.
A presence on social media channels can prove particularly useful to charities
hoping to modernise their brand identity; for example, by building support;
boosting donations; sharing success stories; engaging directly and in real-time
with followers; encouraging people to sign up to new campaigns; recruiting
volunteers; and demonstrating the impact of the charitys work. A recent
example of the effectiveness of social media marketing within the charity
sector has been the Royal National Institute of Blind Peoples (RNIBs)
advertising campaign on Twitter, where it hosted a day in the life of RNIB,
which involved updates regarding the charitys day-to-day activities, such as
taking calls via its advice line, as well as promoting its services and talking about
the experiences of blind or partially-sighted people.
It should be noted, however, that while social media marketing is gaining in
importance within the charity sector, other traditional channels, such as direct
mail, print, magazines and the Web, are likely to continue to be utilised in
order to ensure a broad coverage.
RNIBs social media campaign also serves to highlight another key factor in
marketing strategies among charities, which has become increasingly
important of late. According to a recent report published by New Philanthropy
Capital in April 2013, which was based on findings from a survey of 3,000
people, as well as focus groups and in-depth interviews, the lack of information
regarding organisational activities could mean that charities are missing out
on potential donations of 665 in cash every year. Further results from the
survey showed that, if charities were to provide more information they could
potentially increase their mainstream supporters by 20% and donations from
high-income donors by 34%, equating to a total boost of 11%.
Television events for charity, such as Comic Relief, Sports Relief, and Children
in Need all of which are hosted by the BBC as well as ITVs Text Santa,
which was first set up in 2011 to support UK charities during the Christmas
period, have also continued to remain popular among the public. These events
not only benefit from nationwide coverage across the UK, but also from a high
level of public awareness and celebrity endorsements, as well as corporate
partnerships, e.g. Comic Reliefs ongoing partnership with leading
supermarket chain, Sainsburys. The continued popularity of these television
charity events is clear to see, with both Comic Relief and Children in Need
raising all-time highs of 75.1m and 26.8m, respectively, during 2012, while
ITVs new Christmas charity event, Text Santa, which is aimed at raising money
for six UK-based charities over the Christmas period, generated 5.2m
following its 2012 show.
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Other nationwide and international appeals, such as those undertaken by the

Disasters Emergency Committee (DEC) also serve to reach a wider audience,
with the DEC consisting of 14 major aid agencies for the purpose of fundraising
in times of crisis. Since the start of 2013, the DEC has invested significant money
into developing a new brand identity, in conjunction with brand development
experts, Johnson Banks. The brand relaunch by the DEC was also undertaken
in order to more clearly state the organisations purpose, while also recognising
its constituent parts. The DECs new brand identity now features a system of
concentric, seismic rings, which were designed to impart the sense of
emergency to the DEC and brand each individual appeal, such as the Syria Crisis
Appeal which was first launched in March 2013 and has so far raised around
10.3m (as of 11th April 2013).
Many charities also hold local and national campaigns to encourage
volunteering across the UK. Volunteering England, for example, which forms
part of the NCVO, holds an annual campaign to celebrate volunteering, called
Volunteers Week. The event is held each year between 1st and 7th June and is
undertaken in order to give recognition to those who volunteer regularly
across the country. The organisation also holds the Student Volunteering
Week, which was last held between 11th and 16th February 2013 and was
managed by the National Union of Students (NUS) and Student Hubs, in order
to encourage younger students to participate in voluntary activities.
A number of other campaigns dedicated to promoting volunteering within the
UK are backed by the Government, which has pledged to provide 40m into
the most promising initiatives within the voluntary sector over the next couple
of years. Part of this money has already been invested in the Olympic
volunteering legacy programme, Join In, which was formed following the
much lauded success of the Olympics Games Makers who contributed
voluntarily to help out during the sporting event in 2012. The aim of the Join
In campaign is to encourage people to help out at their local sports clubs and
community groups, which are promoted via special community events, 6,000
of which were held during 2012, with a further 6,500 already scheduled for
2013.
Other Government-funded schemes to encourage volunteering in the UK
include the National Citizen Service (NCS), which is aimed at getting 16 and
17 year-olds to help out in community team projects, as well as the 2.4m
Government-funded programme aimed at attracting 1 million volunteers to
help support people with Alzheimers and dementia. The latter was launched
by health secretary Jeremy Hunt in February 2013 in conjunction with the
Alzheimers Society, and will provide awareness sessions for the public on how
to spot dementia and support people with the condition. Potential volunteers
are able to register their interest in the project which is called Dementia
Friends online or by text message.
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4. Grant-Making Trusts
BACKGROUND
Grant-making trusts which are also known as grant-making foundations
generally derive their income from an endowment provided by a wealthy
individual or family, although others rely on income from sources such as
television or fundraising appeals, e.g. BBC Children in Need and Comic Relief.
Trusts are generally run and managed by unpaid volunteers called trustees,
who supply grants and distribute funds in accordance with their organisations
main mission. Many trusts and foundations provide investment to funding gaps
overlooked by the Government, and often follow their own direction rather
than being led by Government policy. It should also be noted that these types
of organisations rarely engage in operational activities, such as the provision
of services and other direct support, but prefer instead to provide grants and
funding to community-led projects and other charitable initiatives.
According to the Charities Aid Foundation (CAF), there were around 4,227
charities which stated that they made grants operating within the UK as
of 2012, which, combined are thought to have spent around 4.3bn during the
year equating to approximately 11.7% of total expenditure within the
voluntary sector. Grant-making trusts and foundations provide a range of
different types of funding to good causes, according to the trade website,
KnowHow NonProfit, which is run by the National Council for Voluntary
Organisations (NCVO), such as:
kick-starting funding to help launch a new project
revenue to cover running and management costs, such as salaries
capital to pay for building costs or equipment
project funding for a mixture of items within a project budget, such as
contribution towards overheads and management time
core/long-term funding only a few trusts/foundations provide longer term
funding, usually for a partnership deal which will run for a number of years
small grants the majority of trusts/foundations have small grants
programmes which often involve less paperwork and receive a faster
response time.
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MARKET SIZE
According to figures collated by the NCVO for its annual UK Civil Society
Almanac publication, expenditure on grants totalled 4.3bn in 2010/2011, up
by 3.1% from 2009/2010. However this is still 23% lower than the peak of
5.58bn reported in 2007/2008, following a 26.3% decline in expenditure
during 2008/2009. This decline is primarily down to the economic pressures that
have impacted the UK in recent years, following the double-dip recession,
which is likely to have had a negative effect on philanthropic giving since 2008.
Table 4.1: Voluntary Sector Expenditure on Grants (m),

2006/2007-2010/2011
Expenditure on
grants (m)
% change
year-on-year
2006/
2007
2007/
2008
2008/
2009
2009/
2010
2010/
2011
5,130.2
5,582.2
4,111.3
4,169.7
4,296.9
8.8
-26.3
1.4
3.1

Almanac, 2013 National Council for Voluntary Organisations
Voluntary sector expenditure on grants between 2006/2007 and 2010/2011 is

illustrated in Figure 4.1.
Figure 4.1: Voluntary Sector Expenditure on Grants (m),

2006/2007-2010/2011
5,500
5,250
5,000
4,750
4,500
4,250
4,000
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011

Almanac, 2013 National Council for Voluntary Organisations/Key Note
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Table 4.2 displays the top 20 charities in the UK by grant-making expenditure.

According to the figures, which are compiled annually by CAF, the Wellcome
Trust registered the highest level of grant-making expenditure in 2011, at
536.1m. Cancer Research UK reported the second-highest expenditure at
169.2m, followed by the British Heart Foundation, with 131m, and The Save
the Children Fund, with 97.6m.
Table 4.2: The Top 20 Charities in the UK by Grant-Making

Expenditure (), 2011
Grant-Making
Expenditure ()
Wellcome Trust
536,183,048
Cancer Research UK
169,201,401
131,023,403
97,601,048
Charity Projects
91,011,807
Oxfam
74,534,439
The United Kingdom Committee for

UNICEF
72,831,969
The Gatsby Charitable Foundation
71,431,750
The Leverhulme Trust
52,468,133
The Museums, Libraries and Archives

Council
51,214,926
International Planned Parenthood

Federation
51,112,677
Garfield Weston Foundation
41,469,934
Christian Aid
40,904,500
Esmee Fairbairn Foundation
40,670,102
BBC Children in Need
38,439,209
Creativity Culture and Education
37,655,510
The Great Ormond Street Hospital

Childrens Charity
36,758,329
The Monument Trust
35,536,992
WWF UK
35,480,449
WWF World Wide Fund for Nature
Source: Key Note based on data from Charities Aid Foundation
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Table 4.3 shows the top 20 UK charities by proportional spending on

grant-making. It should be noted that for some organisations, grant-making
expenditure is higher than total expenditure because of an exceptional credit
during the year, the source of which has not been disclosed in return forms for
these particular charities in 2011.
According to the figures, which were compiled by the CAF, The Neil Kreitman
Foundation spent over double (241%) of its total expenditure on grants in
2011, with 750.1m allocated towards grant-making, compared with its total
expenditure of 311.3m. In terms of proportional spending, the Euro Charity
Trust registered the second-highest figure at 102.1%, followed by The Amjad
and Suha Bseisu Foundation, with 100.5%, and the Columbia UK Fund Ltd, with
100.4%. Overall, the statistics from CAF show that 11 organisations spent
100% or more of their total expenditure on grant-making during 2011.

on Grant-Making ( and %), 2011
Grant-Making
Expenditure
as a % of
Grant-making
Total
Total
expenditure () Expenditure ()
Expenditure
Charity
The Neil Kreitman
Foundation
750,083
311,282
241.0
Euro Charity Trust
3,350,877
3,281,812
102.1
128,591
127,896
100.5
Columbia UK Fund Ltd
4,627,111
4,610,551
100.4
The Coutts Charitable

Trust
1,230,721
1,230,721
100.0
Shrewsbury School
Foundation
755,046
775,046
100.0
The Treeside Trust
97,871
97,871
100.0
Mabel Cooper Charity
49,347
49,347
100.0
617
617
100.0
The Davidson Family

Charitable Trust
1,384,278
1,384,647
100.0
Yellow Car Charitable

Trust
9,454,277
9,456,863
100.0
The Amjad and Suha

Bseisu Foundation
Graig Community
Centre
Table continues...
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on Grant-Making ( and %), 2011
...table continued
Grant-Making
Expenditure
as a % of
Grant-making
Total
Total
expenditure () Expenditure ()
Expenditure
Charity (cont.)
Fereydoun Djam
Charitable Trust
2,296,689
2,297,964
99.9
The Gevurath Ari Torah

Academy Trust
1,642,786
1,644,145
99.9
Stobart Newlands
Charitable Trust
1,513,594
1,514,887
99.9
The Hintze Family

Charitable Foundation
5,900,938
5,906,628
99.9
871,590
872,545
99.9
20,791,829
20,815,110
99.9
The Brook Partners

Charitable Trust
1,131,368
1,132,710
99.9
University of
Pennsylvania (USA)
Foundation
2,797,105
2,800,776
99.9
Amabrill Ltd
2,104,626
2,107,392
99.9
The Friends for the

Centre for Torah
Education Trust
BHP Billiton Sustainable
Communities
Source: Charities Aid Foundation
CONSUMER TRENDS
Generally, the majority of grant-making trusts and foundations rely solely on
donations from wealthy individuals or families (both living and deceased).
Some examples of well-known trusts include the Big Lottery Fund, which
administers half the money for good causes from the National Lottery; and the
CAF, which designs and manages grant programmes on behalf of individual,
corporate and charitable donors. Many trusts are also set up in the name of a
well-known individual or in honour of someone that has passed away, such as
Roald Dahls Marvellous Childrens Charity, the Joseph Rowntree Charitable
Trust and Foundation, and the Amy Winehouse Foundation.
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According to a report undertaken by the CAF entitled Catalysts for Change:

How Philanthropists are Forging New Paths to Long-Lasting Impact 2013, which
discusses how philanthropy is evolving in the UK, wealthy donators are
increasingly becoming more strategic in terms of the way in which they are
putting their philanthropic capital to use. The report reveals that many
philanthropists are now drawing on the business world for ideas that can
deliver skills and capital quickly and efficiently when tackling social problems.
For example, nowadays, many social ventures backed by investors are
encouraged to become self-sustaining by generating their own revenue. These
particular types of investors are often called venture philanthropists or social
investors. According to the CAFs report, this particular approach towards
philanthropic giving is referred to as blended value; and has continued to
become increasingly popular in recent years, with around 50 venture
philanthropy firms now established across Europe garnering investments of
around $1bn as of 2010/2011.
According to Coutts Million Pound Donors Report 2012 which analyses the
highest-paying donors in the UK every year 232 million-pound donations
(MPDs) were made by 132 separate donors in 2010/2011 (although it should be
noted that this includes donations made to charities and other organisations
in the voluntary sector as well as grant-making trusts and foundations).
Although the number of donors recorded during the year by Coutts was the
highest figure since records began in 2008, the total amount of money being
donated by such investors has actually fallen in recent years, settling at 1.2bn
in 2010/2011, down from 1.3bn in 2009/2010, with this decline likely to be
down to the continued weakened state of the economy, which has caused
many philanthropists to play a cautious approach in donating to the voluntary
sector. Further results from the report by Coutts showed that foundations
attracted the highest level of MPDs, at around 494m, followed by higher
education facilities, with 405m, and organisations involved in arts and culture,
with 109m.
MARKETING ACTIVITY
A number of organisations help to facilitate access to grants, including the
Charity Commission (CC), the CAF, the Institute of Fundraising and the
Association of Charitable Foundations, among others. Information regarding
accessing grant funding from trusts and foundations is also provided by
independent advisory bodies such as the Directory of Social Change, which
publishes a number of grant-making directories; and Fit4funding, a website
run by the Charities Information Bureau (CIB).
Exhibitions and conferences can also provide a good platform for organisations
seeking funding to network with grant-making trusts and foundations, and to
find out more information about accessing funds from such institutions. One
such event, the Charity Funding Roadshow is held every year in the UK. In 2012,
the Roadshow visited three major cities in the UK London, Birmingham and
Leeds during the month of September. The Roadshow is a one-day
conference, featuring statutory, lottery and trust funders, and serves to
provide a range of information and guidance regarding funding from
grant-makers.
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DISTRIBUTION
Voluntary Sector Expenditure on Grants
In total the voluntary sector spent 4.3bn in 2010/2011 (12% of total
expenditure in the sector) making grants to other voluntary organisations,
individuals and statutory organisations. According to the NCVOs UK Civil
Society Almanac, 2012, higher education institutes continue to remain a
significant recipient of grants, which these types of organisations estimated to
have accessed around 2bn in the form of grant funds during 2010/2011.
Further statistics provided by the NCVO show that around 52% of grants are
made to other voluntary organisation every year, with the remaining grant
expenditure accounted for by other civil society organisations.
National Lottery Funding

The National Lottery Distribution Fund (NLDF) was initially founded in 1994, at
the time the National Lottery was launched in the UK. The purpose of the NLDF
was to receive and hold funds generated by the National Lottery for Good
causes. The Fund is now one of the leading grant-making institutions, and, by
31st March 2012, had raised 27bn for good causes since the National Lottery
was first launched.
The majority of the NLDFs funding is apportioned to sport, the arts and
heritage in the UK. For the year ending March 2012, NLDF generated total
grants of 1,68bn. The majority of this was awarded to the Big Lottery Fund
(46%), while the Arts, Sports and the Heritage Lottery Fund each received 18%
of the total funding.
Table 4.4: National Lottery Distribution Fund Grants

by Recipient Sector (m and %), Year Ending March 2012
Income (m)
% of Total
Arts
Sports
Heritage
Lottery
Fund
Big
Lottery
Fund
Total
302.6
302.6
302.6
773.4
1,681.3
18.0
18.0
18.0
46.0
100.0
Note: totals may not sum due to rounding.
Source: National Lottery Distribution Fund Account 2011-2012 Crown

copyright
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Big Society Capital Group

The Big Society Capital Group was originally set up by the Coalition
Government in 2010 and was first launched in April 2012. The Group is funded
via the English share of dormant accounts for social spending through the
Dormant Accounts scheme, which will involve a series of capital transfers from
dormant accounts over time totalling up to 400m this is also known as the
Reclaim Fund. Shareholder banks participating in the scheme including
Barclays, HSBC, Lloyds Banking Group and RBS have also agreed to invest
50m each in Big Society Capital (BSC). The main mission of Big Society Capital
is to provide investment to social investment finance intermediaries (SIFIs),
which in turn provide affordable finance and support to social sector
organisations, including charities, social enterprises, voluntary and community
organisations, co-operatives and mutuals. The organisation also aims to
champion the wider development of the social impact investment market in
the UK through spreading knowledge, defining effective approaches and
informing Government policy.
It is hoped that the financial backing provided by BSC to social investment
projects will help to generate social, as well as financial returns. While some
critics have been quick to find fault with the scheme, which would supply
funding in the form of a loan to charities and other voluntary organisations;
others have supported the scheme for its new and innovative method of
generating sustainable funds for the third sector.
In the year ending 31st December 2012, BSC received 119.4m from the Reclaim
Fund and its partnership banks. The organisation committed 56.6m of its
funding to 20 investments during the year, with 23 frontline organisations
having received investment commitments from the BSC so far. According to
the BSCs first annual accounts which were published in the year ending
December 2012, of the 56.6m of money committed to its range of social
investments during the year, 78% was awarded to general social projects, while
7% was supplied to community and infrastructure projects. Elsewhere, 3% was
awarded to organisations involved in education, 2% each to employment and
financial inclusion bodies, while the remaining 1% went towards groups
involved in social well-being.
Table 4.5: Share of Big Social Capital Investment by Outcome

Area ( invested), Year Ending December 2012
Share of Investment
(based on invested)
Outcome Area
General
78
Community
Infrastructure
Table continues...
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Table 4.5: Share of Big Social Capital Investment by Outcome

Area ( invested), Year Ending December 2012
...table continued
Share of Investment
(based on invested)
Outcome Area (cont.)
Education
Employment
Financial inclusion
Social well-being
Source: Annual Report and Financial Statements, 2012 Big Society Capital
UK Community Foundations (previously known as the Community Foundation
Network) is a registered charity and acts as an umbrella organisation for a
network of community foundations operating across the country, including a
number of well known national funds, such as the Fair Share Trust, and the
Comic Relief and Sport Relief funds. Its main aims are to:
help build financial and physical resources for local communities, i.e. by
developing funds to invest in projects that have a lasting impact and that
meet basic social needs or enhance the overall quality of community life
provide services to donors and help them invest their money, time and/or
skills
provide finance, give assistance, and make investments and grants across a
wide range of community groups, organisations or initiatives
work together in community leadership to solve local problems.
UK Community Foundations can meet a range of community needs, including
arts and culture, education, the environment, health, community
development, children and young people, older people, and employment and
training.
Along with its main activity in support UK community foundations, the
organisation also runs and manages a number of programmes to support
philanthropic giving in the country, including The Beacon Awards for
Philanthropy; Community First (a match-funded endowment scheme); The
Philanthropy Fellowship (a network of philanthropists across the UK); and
Surviving Winter (a programme to raise money for people struggling to pay
their heating bills).
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According to the figures, which have been compiled by the CAF, The Neil
Kreitman Foundation spent over double (241%) of its total expenditure on
grants in 2011, with 750.1m allocated towards grant-making, compared with
its total expenditure of 311.3m. In terms of proportional spending, the Euro
Charity Trust registered the second-highest figure at 102.1%, followed by The
Amjad and Suha Bseisu Foundation with 100.5% and the Columbia UK Fund
Ltd with 100.4%. Overall, the statistics from CAF show that 11 organisations
spent 100% or more of their total expenditure on grant-making during 2011.
Table 4.6: UK Community Foundations Expenditure

on Charitable Activities (000), Years Ending
31st March 2011 and 2012
2011
2012
1,006
1,061
72
147
541
526
1,488
598
10,853
14,749
51
46
14,011
17,127
Charitable activities
Of which:
fair Share excluding grants
ICT services
member services
other programmes
Grant payments
Governance
Total charitable expenditure
Source: Report and Consolidated Financial Statements, 31st March 2012 UK

Community Foundations
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Corporate Funding and Financing
5. Corporate Funding and Financing

BACKGROUND
Over the past few decades, corporate social responsibility (CSR) programmes
adhered to by big organisations within the private sector have become
increasingly important to consumers in the UK. Rising concern over the effect
that large companies operations e.g. manufacturing facilities and office,
etc. are having on the environment in terms of their carbon footprint, as
well as their ethical and moral duties and responsibilities, have become key
issues for consumers. As such, CSRs which were previously viewed as bolt
on programmes have become critical across big business in recent years.
Increased media attention regarding the environmental and ethical activities
of companies has also served to boost consumer awareness of such issues and,
as a result, societys expectations of big organisations operating within the
private sector, have increased significantly.
The Government has also taken steps to improve the accountability and
transparency of the business activities of large companies operating within the
private sector, following a number of recent events, such as the BP oil rig spill
in 2010 and the Primark Bangladesh factory disaster in 2013. In order to make
companies more accountable to shareholders and the public, the Government
has introduced a number of initiatives, including improving company reporting
via regulatory changes, and ensuring that companies report on greenhouse
gas emissions as part of their annual Directors Report. Pressures to do more
for the environment have also been driven by the introduction of the UKs
Climate Change Bill 2008, which commits the UK to an 80% reduction in carbon
emissions by 2050. In addition, companies with a premium listing of equity
share in the UK are also required to follow the UK Corporate Governance Code
(formerly the Combined Code), which sets outs standards of good practice
regarding board leadership and effectiveness, remuneration, accountability,
diversity and equality and relations with shareholders.
The rising importance of accountability and transparency within the private
sector, has also led many large enterprises to develop in-depth CSR strategies
and mission statements, which outline their commitment to sustainable and
ethical working practices, as well as their responsibility to the environment.
Part of many large companies CSR strategies involve local and national
charitable giving projects; for example the ongoing partnership between
Sainsburys and Comic Relief, and Macmillan Cancer Supports 3-year
partnership deal with high-street health and beauty retailer, Boots. These
partnerships often involve charitable fundraising projects and are aimed at
promoting the business aims of both parties involved.
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According to the Directory of Social Change (DSC), corporate donations to UK

charities are estimated to stand at around 1.6bn annually (as of May 2012),
with cash donations representing around 70% of top companies community
support portfolios to good causes and charities in the UK. The remaining 30%
of donations are usually invested in the provision of goods and services,
specialist pro bono contributions and employee time. Donations to good
causes and charities in the UK from the top 300 listed companies are estimated
to represent around 70% of their overall worldwide community investment
portfolio, with the remaining funds going towards international projects.
Recent years have seen a significant trend towards social investment, which
has been bolstered by the aims and activities of the Governments Big Society
initiative. Social investment is seen as a new channel through which private
companies and investors can contribute money to social impact projects. Unlike
traditional partnerships which usually involved donations only social
investment projects are aimed at providing return on investment (ROI) to
contributors, not only in the form of social impact, but also financially. While
this particular cornerstone of the Big Society initiative has resulted in criticism
and controversy since becoming a central policy of David Camerons
conservative party, social investment initiatives have seen interest from private
investors grow in recent years. A report from Boston Consulting Group
published in September 2012 revealed that investment in such projects is likely
to rise from 286m in 2012, to as much as 1bn by 2016.
TAX INCENTIVES
Corporations can be eligible for a number of tax reliefs if they opt to donate
(in the form of money or gifts) to charities in the UK, the remit of which is
undertaken by HM Revenue & Customs (HMRC). However, tax reliefs for
corporations work differently than for individuals, self-employed sole traders
and partnerships. The various forms of tax relief are also dependent on the
type of gift donated by corporations to charity, as outlined in more detail
below:
Gifts of Money
Gifts of money made to charities by corporations are paid gross that is
without deducting income tax. Monetary gifts are also deductible from a
businesss total profits when calculating corporation tax. In this way, a charity
does not need to make a Gift Aid repayment claim as no tax has been deducted.
The value of the benefit given to corporations donating to charity in the form
of tax relief is dependent on the amount donated. For example, those donating
between 0 and 100 are able to receive benefits of 25% of the donation;
donations of between 101 and 1,000 are eligible to receive 25 in benefits;
and those of above 1,001 are able to obtain 5% of the donation up to a
maximum of 2,500 (for donations made after 6th April 2011).
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Gifts of Land, Buildings or Shares

Corporations are eligible for corporation tax relief if they donate gifts of land,
property or qualifying shares in the business to a charity, or sell them to a
charity at less than their market value. However, it should be noted that
corporation tax relief is not available for gifts or sales of land, buildings or share
to Community Amateur Sports Clubs (CASCs). Although, gifts or sales at less
than market value to CASCs can qualify for relief from corporation tax or
capital gains.
Corporation tax is normally payable on capital gains made when land,
buildings or shares are given away or sold at a profit. However, if a company
makes an outright gift to a charity or CASC of an asset without expecting
anything back in return, no corporation tax is needed to pay on any capital
gains. Furthermore, no corporation tax is required to be paid as long as the
charity or CASC paying the company for the asset, purchases it for less than the
original price it was bought for.
The recipient charity of an asset donation made by a corporation is also able
to benefit from tax incentives. For example, a charity will not need to pay
Stamp Duty Land Tax if a company makes an outright gift of land or buildings.
In addition, a charity will not be eligible to pay a Stamp Duty charge if a
company makes an outright gift of shares.
Gifts of Company Equipment, Trading Stock or Staff Help

Tax relief is available for business that make a gift of equipment or trading
stock to a charity or CASC. In this way, a company will be able to reduce its
taxable profits by the cost of the gift donated, thus reducing the amount of
tax payable. This applies whether a business acts as a sole trader, a partnership
or a company. Companies may also benefit from tax relief for the costs of
temporarily transferring an employee to work for a charity, i.e. on secondment.
However, it should be noted that this type of relief is not available for
employees seconded to CASCs.
In addition, businesses that purchase goods for the purpose of donating them
to charity is not counted as a business activity by HMRC for value-added tax
(VAT) purposes and, as such, a company will not have to account for VAT on
items that it has purchased to give away. However, if a business is
VAT-registered it will not be able to reclaim VAT paid on goods bought for this
purpose as it is only able to reclaim VAT on items purchased for business
purposes. In the case of trading stock (i.e. donated goods that a company
manufactures or sells itself), such items count as taxable business supply for
VAT purposes. As a result, if a company is VAT-registered it must account for
VAT on these goods donated to charity depending on what the items are
either at the standard rate of VAT (20%), the reduced rate (5%) or at zero rate.
However, a business may be able to zero rate its supply of trading stock
donated if a company makes a donation specifically so that the charity can sell,
hire out or export such goods. This means that a VAT-registered company is
entitled to reclaim the VAT on the purchase of the trading stock that it donates
to charity.
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Gifts of Equipment
If a business donates equipment to charities or CASCs, it may be able to benefit
from full capital allowances on the cost of the equipment given. In order to
qualify, the equipment donated must have been used as part of the companys
normal business activities, and must be considered plant and machinery for
capital allowance purposes (this could include office furniture, computers,
printers, vans and cars, tools and machinery).
Gifts of Trading Stock

If a company donates products or services that it sells (known as its trading
stock) to a charity or CASC, it is eligible to claim the cost of these goods within
its business accounts. A company that donates trading stock in this way will not
have to include anything in its sales income pertaining to the value of the gift.
In this way, it is able to reduce the businesss taxable profits by the full cost of
the goods.
Secondment of Employees
If a business lends or temporarily transfers an employee to work for a charity,
it is able to treat the secondment as a business expense in its accounts (not
available in the case of CASCs). If, during the secondment, a business continues
to pay its employee, it is able to set this cost again its taxable profits as if the
person was still working within the company. Costs here include the
employees wages and any further business expenses. The same benefit also
applies if a businesss employees are volunteering for charity during work time
a business can continue to claim tax relief for the cost of employing the
seconded volunteer, i.e. such as salary and employers national insurance.
These costs can still be treated as a business expense when calculating
chargeable profits for a company.
MARKET SIZE
Table 5.1 displays some of the leading corporate donators with operations in
the UK. Energy firm, Centrica PLC was found to be the leading UK-based firm
in terms of corporate donations, with the company investing a total of 233.6m
into community and social investment projects across the world as of the year
ending 31st December 2012. Global Resources firm, BHP Billiton PLC registered
the second-largest corporate donation, at 214m for the year ending
30th June 2012, followed by global healthcare firm GlaxoSmithKline (GSK) with
corporate funding of 185m for the year ending 31st December 2012.
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Table 5.1: Leading 15 Corporate Donators in the UK by Amount

Donated (m), Latest Financial Year
Corporate
Donations
Year Ending
Centrica PLC
233.6
31st December 2012
BHP Billiton PLC
214.0
30th June 2012
GlaxoSmithKline
185.0
31st December 2012
Shell Group
97.0
31st March 2012
Tesco PLC
92.1
23rd February 2013
Lloyds TSB Group PLC
78.9
31st December 2012
HSBC Holdings PLC
78.1
30th September 2012
Deutsche Bank
70.6
31st December 2012
BP PLC
59.0
31st December 2012
The Royal Bank of Scotland

Group PLC
49.5
31st December 2012
J Sainsbury PLC
41.5
16th March 2013
Diageo PLC
28.7
30th June 2012
Barclays PLC
26.7
31st December 2011
The Co-operative Group PLC
18.9
5th January 2013
British Sky Broadcasting PLC
16.0
30th June 2012
Company
Note: cash donations include in-kind contributions and employee giving (e.g. through
salary schemes); figures include donations made worldwide, including to community
schemes both in the UK and internationally.
Source: Key Note
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CONSUMER TRENDS
Corporations invest in social and community projects and charities in a variety
of ways, from running in-store promotions and collections, to setting up their
own charitable foundations. Many companies also participate in corporate
sponsorship deals or partnerships with specific charities; for example, the
supermarket Sainsburys is currently the official sponsor of Comic Relief. In
recent years, corporate giving has become increasingly more integrated among
partner charities, with a much higher number of private-sector organisations
supplying not only investment, but also employee contributions in the form of
volunteering. In addition, a number of companies have set up their own
in-store charitable campaigns through partnerships, such as Marks & Spencers
(M&S) Shwopping promotion at 1,200 outlets across the UK, which is
undertaken in conjunction with Oxfam.
Efforts have also been made by the Government and business-led charity,
Business in the Community (BITC) to promote corporate responsibility in the
UK in recent years, in order to ensure that private-sector organisations remain
sustainable and transparent, while also giving back to the community in which
they trade.
Partnerships
In recent years, the nature of corporate social responsibility (CSR) partnerships
with charitable organisations has become increasingly sophisticated, with
many businesses moving away from traditional philanthropic giving to more
strategic partnerships or social investment, which involve a more hands-on
approach. As CSR has become more important, with many companies now
producing increasingly in-depth CSR annual reports or sustainability reviews,
they want not only to donate money to charities, but also contribute via
employee involvement, i.e. through community projects, in order to showcase
and promote their business social involvement. In this way, such partnerships
can be mutually beneficial to both parties, with charities benefitting from both
the financial investment and volunteer work provided by corporations, while
corporations involvement with charitable causes can provide good public
relations (PR) opportunities for the business as a whole.
Increasingly, corporations are also opting to undertake partnerships that fit in
with their wide business objectives, thus providing a more integrated
approach. One such example is Boots 3-year partnership deal with Macmillan
Cancer Support, which involves the installation of Macmillan-branded advice
centres in 100 Boots branches across the country, as well as the provision of
additional training for pharmacy staff and traditional staff fundraising events.
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Cause-Relating Marketing and In-Store Promotions

Partnership deals often involve cause-related marketing and in-store
promotions, which not only present corporations in the best possible light to
consumers, but also provide wider exposure opportunities for charitable causes
to promote their current fundraising campaigns to consumers. The
long-standing partnership between Sainsburys and Comic Relief is a good
example of this, with the retailer holding in-store fundraising events on behalf
of the charity, as well as selling merchandise, such as red noses for Red Nose
Day. As part of Comic Relief 2013, Sainsburys also turned a number of its offices
into Red Nose Day call centres to take donations during the live shows, which
over 340 volunteers from Sainsburys took part in. Since the start of the
partnership, Sainsburys has raised over 63m in support of Comic Relief.
Another example has been M&S Shwopping campaign in conjunction with
Oxfam, which was setup in 2008, and allows customers to donate unwanted
clothes to in-store bins, which are then given to Oxfam to re-use, recycle or
re-sell. Since the scheme launched, M&S has invested heavily in television
advertising promoting Shwopping, which has also been endorsed by actress,
Joanna Lumley. Over the past year (since April 2012), around 4 million items of
clothing have been shwopped in over 400 M&S and Oxfam stores, which has
helped Oxfam raise 2.3m. Indeed, the scheme has been so successful since its
launch that M&S recently won the 2013 Big Society Award, which was setup
by Prime Minister, David Cameron in 2010 in order to acknowledge individuals
and organisations across the UK that demonstrate the Big Society in their work
or activates.
Corporate Charitable Foundations

Many larger corporations, particularly those that have a wide global presence,
set up and run their own charitable foundations, which are managed and run
as a separate legal entity to the company. Typically, corporate foundations
receive the majority of their money from the company, i.e. via direct donations
from the company, gifts of company shares, investment income on assets given
by the company, an endowment linked to the companys profits, or through
money raised by the companys customers or employees. Many companies also
provide in-kind support; for example, office space, seconded staff, IT
equipment or business expertise.
According to the Charity Commission (CC), there are currently around 100
corporate foundations based in England and Wales, which benefit the public
in a variety of ways through grants. Such foundations generally carry the name
of the company that originally set it up, e.g. the Tesco Charity Trust, The Shell
Foundation. This way, such foundations and trusts can benefit from the brands
presence and the media exposure attached to such corporations, which can in
turn reap reputational rewards by association.
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Volunteering
Many companies also contribute to their partner charities through staff time
and employee volunteering schemes. In this way, corporations can strengthen
their relationship with the charities that they support, and can bolster
campaigns through employee involvement in in-store promotions and
fundraising events. Supermarkets have a long history of donating employee
time to their good causes. For example, in 2012, leading UK supermarket chain,
Tesco hosted a number of events on behalf of its charity of the year, Cancer
Research UK, such as Cycle to Lapland, which involved colleagues from its stores
and offices riding stationary bikes the distance from London to Lapland
equating to over 2,000 miles which saw the store raise 820,000 for the
charity in a week.
Rival supermarket chain, Sainsburys has also done much to promote employee
engagement with its charity work as part of its 20x20 Sustainability Plan. For
example, in 2011/2012, the supermarkets employees contributed 7,000 days
to voluntary work among themselves. The supermarket chain also seconded
four of its senior managers to operate as Business Connectors as part of the
BITCs programme, which will see the employees operating as local brokers
to bring together business and the voluntary sector.
Products and Services

Many corporations also provide gifts of the products or services that they
supply as part of their business to charitable organisations, often alongside
financial donations. For example, global pharmaceutical firm, GlaxoSmithKline
(GSK) uses its position as a science-led healthcare company to improve the
health and wellbeing of those in need by investing in some of the least
developed countries across the world and making GSK products more available
and affordable. In 2012, GSK revealed that it donated medicines worth the
value of 131m, along with 76m in funds. Almost half of the companys total
donation and 100 of its product donations were given to support 356,512
low-income patients through its Patient Assistance Programmes in the US. GSK
also revealed that it had donated 3.3m worth of products via its partner
network, which distributed donated medicines to 86 countries across the world
during 2012, including antibiotics, basic medicine and oral hygiene items to
those affected by crisis situations and natural disasters, such as the cholera
epidemic in Niger; the floods in the Philippines; and hurricanes Sandy and Isaac
in the US.
Other companies, particularly those operating within the retail sector, are also
well-positioned to donate products, such as clothing and food, to those most
in need, with many such companies providing items to local shelters. A number
of retailers and food-based firms have also signed up as official supporters of
UK-based charity FareShare, which helps to support communities across the
country in relieving food poverty. Corporate partners of the charity have so far
included specialist catering firm Sodexo and food manufacturers, Bel UK and
Nestle, as well as the supermarket chain Sainsburys.
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MARKETING AND PROMOTION

As well as the recognition and social awareness that corporations benefit from
as part of their partnerships with charitable organisations, many compete
within a number of awards ceremonies held within the voluntary sector, more
details of which are provided in Chapter 2 Strategic Overview.
In addition, the BITC, provides a range of marketing and networking
opportunities for corporations seeking partnerships with charitable
organisations, along with research and resources and training programmes to
help businesses become more involved with community engagement
programmes. The charity also provides a range of advisory services to
corporations to help them integrate and install more responsible and
sustainable business practices across their operations. In addition, it provides
an annual Corporate Responsibility Index, which details a corporations level
of commitment to responsible business in the UK. According to the most recent
2013 Corporate Responsibility Index from the BITC, participating companies
achieved a high average score of 90%, suggesting that they are continuing to
overcome commercial pressures in maintaining their investment in and
engagement with responsible business practices.
DISTRIBUTION
According to figures compiled by the Centre for Charitable Giving and
Philanthropy in 2008, companies based in the healthcare market represented
the largest proportion of corporate giving, accounting for just over two-fifths
(41.2%) of charitable income from corporate donations. Financial institutions
were also major donors to charitable organisations, representing 19.8% of
corporate giving, followed by companies engaged in producing basic materials
(13.1%) and consumer services (9.4%).
Table 5.2: Worldwide Corporate Giving

by Industry Type (%), 2008
Healthcare
41.2
Financials
19.8
Basic materials
13.1
Consumer services
9.4
Consumer goods
4.9
Oil and gas
5.1
Telecommunications
4.0
Industrials
1.2
Table continues...
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Table 5.2: Worldwide Corporate Giving

by Industry Type (%), 2008
...table continued
Utilities
1.2
Technology
0.1
Total
100.0
Note: although figures have not been updated since 2008, little is expected to have
changed in terms of shares within the corporate giving sector.
Source: Key Note estimates based on data included in UK Corporate Citizenship

in the 21st Century Centre for Charitable Giving and Philanthropy/Directory of
Social Change
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6. PEST Analysis
POLITICAL
Government Plans to Consult on Society Lotteries Contribution to
Good Causes
In March 2013, an article published by the Institute of Fundraising revealed
that the Government was planning to consult on proposals to increase the
minimum percentage that society lotteries must contribute to good causes,
which is currently set at 20%. However, although this could result in extra
funding for many local community projects across the country, the Institute of
Fundraising has warned that any changes to such regulations could have
serious consequences for not-for-profit society lotteries and others, which have
already observed a considerable drop in income since the start of the
double-dip recession.
According to the Institute of Fundraising, an increase in the minimum
percentage that society lotteries must contribute towards good causes could
mean that smaller lotteries, many of which are already struggling financially,
may have to close. This could, in turn, be very damaging for the third sector,
which has suffered significantly over the past couple of years following
reduced funding from statutory sources in line with the wider austerity
measures currently being implemented by the Coalition Government. Similar
concerns have also been voiced by Maria Miller, the Secretary of State for
Culture, Media and Sport, who revealed in a joint letter issued in conjunction
with the Institute of Fundraising and Lotteries Council, that the move spurred
up real concerns that an increase in the current 20% minimum percentage will
actually result in less money overall going to good causes.
In addition, a number of charities and charitable organisations have all
officially gone on record to state that increasing the minimum contribution
that society lotteries have to donate to good causes from 20 pence (p) for every
1, would actually reduce the amount of money that they will receive or will
make it harder to increase their income through society lotteries. Some
examples of the charities who have said this include Marie Curie, Scope,
Barnados, the National Trust, the Hospices Lotteries Association, Prostate
Cancer UK, the Royal British Legion, the World Wide Fund for Nature (WWF)
and Macmillan Cancer Support.
Government Consult on Reform of Payroll Giving

On 24th January 2013, it was announced that the Government had entered
into a consultation on reforming Payroll Giving in order to improve donations
made to charities via this particular channel. In 2011/2012, around 118m was
donated to good causes by 735,000 people in the UK through Payroll Giving.
However, the Government believes that these figures could be increased
through simplifying the schemes administration and making it easier for
donors to give money to charity via payroll schemes.
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Payroll Giving allows UK income taxpayers to donate regularly and on a

tax-free basis to charities. Donations are deducted from gross pay, so that each
1 given will only cost a basic rate taxpayer 80p; however, at present only a
very small percentage (2%) of employers provide Payroll Giving schemes, and
only 3% of employees donate in this way. Employees are normally recruited to
participate in such schemes by Professional Fundraising Organisations which
visits businesses and transactions are generally managed by specialist Payroll
Giving Agencies (PGAs). Under current rules, all PGAs must also be registered
as charities.
In order to encourage Payroll Giving, the Government has put forth a number
of proposals, including:
introducing the provision of exit packs when an employee stops donating via
the scheme, which will include materials to help them maintain a longer term
relationship with their chosen charity
bringing in standardised forms to make signing up to Payroll Giving schemes
easier for employees
reducing the processing time from 60 to 30 days to ensure that charities
receive donations from Payroll Giving schemes faster
opening up the PGA market to competition from non-charities to allow new
entrants to invest in and improve the Payroll Giving system
ensuring that PGAs are transparent to donors regarding the cost of
processing their donation.
The consultation regarding Payroll Giving schemes was held between
24th January 2013 and 19th April 2013. During the consultation period, the
Government received more than 40 responses from organisations and other
bodies operating within the voluntary sector. It is thought that some of the
proposals put forth by the Government have been met with trepidation by
sector bodies, with several proposing that the reforms actually go further to
include online portals, service-level agreements between agencies and
charities, and the consolidation of back-end processes. Two of the leading
organisations operating within the sector the Charities Aid Foundation
(CAF) and the Institute of Fundraising also criticised the reforms, which ruled
out making all employers offer payroll giving, with both bodies arguing that
wider reform was vital.
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The Institute of Fundraising also raised concern over the lack of transparency
and accountability in Payroll Giving. The present system means that PGAs only
have an agreement with the employers that they work with, and not the
charities that they deliver funds to. As a result, charities lack the power to hold
agencies to account when the system fails. In order to combat this particular
problem, the Institute called for the introduction of service level agreements
between PGAs and charities, in order to improve accountability across the
sector. The Institute also recommended that a payroll giving online portal be
established to enable employees to manage their own accounts, as well as the
introduction of a central database of employers which offer payroll giving.
Meanwhile, CAF suggested the consolidation of back-end processes of payroll
giving a market in which it is currently the largest provider in the UK. The
CAF also suggested that such processes be opened up to third-party developers
in order to boost innovation within the industry.
The Government is currently analysing the responses received during the
consultation period regarding the new proposals, with a final decision
expected to be published later on this year.
Industry Calls for Introduction of Chugging Regulations

In his review of the charity sector, which was published in early 2012, Lord
Hodgson recommended a number of measures to restrict the activities of public
fundraisers also known colloquially as chuggers on local high streets in
the UK. Some of the suggestions laid out by Lord Hodgson included providing
local councils with greater powers in dealing with aggressive public charity
collectors and introducing licensing for public fundraising activities in order to
ensure that greater control is maintained over where and how such collections
take place. Current council rules do not cover the management of public
charitable collections or chugging, because it involves donors signing up to
direct debit payments rather than handing over cash.
Recent years have seen concern regarding chugging on UK high streets
increase, not just among the public, but also across the voluntary sector.
According to a survey undertaken by the Directory of Social Change (DSC) in
March 2013, which questioned around 300 charity staff members, the majority
of respondents (70%) revealed that they believe chugging to be appalling and
damaging to the charity sector, while a further 25% admitted that it was
irritating but necessary and only 5% agreed that it was brilliant and
effective. Currently, public charitable collections are thought to generate
around 130m for charities each year, according to the Public Fundraising
Regulatory Association; however, many critics have suggested that the
aggressive nature of some chuggers could actually be detrimental to the
charity sectors public image and even put off prospective donators from giving
to charity.
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ECONOMIC
Charities Continue to be Threatened by Financial Meltdown
Since the start of the double-dip recession in 2007/2008, UK charities have
continued to struggle, with many facing a triple whammy of increased
demand for services, rising costs and a drop in income. Not only has the
recession led to a downturn in giving from private individuals, but income from
statutory sources (i.e. the Government and local councils) the largest
revenue stream for many charities has also faced severe cuts, following the
implementation of the Coalition Governments harsh austerity measures,
which have been undertaken in order to combat the UKs growing debt.
While donations have been hit, rising costs have also become an increasingly
worrying problem, with figures from the National Council for Voluntary
Organisations (NCVO) suggesting that charities saw rising costs of 2.3bn
purely as a result of inflation between 2008 and 2010. At the same time,
charities have faced increased demand from members of the public, many of
which have also suffered at the hands of the financial crisis, which resulted in
high unemployment and stagnating disposable income. According to a report
published by PwCs in 2013, entitled Managing in the New Normal
Adapting to Uncertainty, demand for charitable services increased
year-on-year once again between 2012 and 2013, from 67% to 72%. However,
further results from the study undertaken by PwC show that, of those charities
facing increased demand, only a quarter were actually sufficiently resourced
to provide the additional services required.
According to figures produced by the NCVO and CAF, charitable donations in
the UK fell by a fifth over the past year, from 11bn to 9.3bn during
2011/2012. This decline, combined with increased running costs and rising
demand for charitable services, has led to some charities raising concerns that
the sector is now reaching a crisis point, with eight out of ten charities
believing this to be the case, according to a survey undertaken by the NCVO
and CAF during 2011/2012. Furthermore, according to the CAF two in five
(40%) charities feared that they would have to close their doors if the economic
situation did not improve, and almost three-quarters (73%) revealed that they
felt they were unable to fulfil their goals, while one in four had axed staff, as
reported on 9th December 2012.
In order to combat the effects of the double-dip recession, many charities have
turned to alternative sources of revenue to offset declines observed in
statutory funding from national and local Government. As such, income
generated from retail and trading has grown, with 55% of respondents
increasing trading activity since the start of the downturn, according to figures
compiled by PwC. Other avenues, such as social investment, which has been
boosted by the Governments Big Society initiative, have also provided a new
source of income although this particular sector is still in its infancy and it is
likely that some issues relating to repayable finance backing within the sector
will need to be addressed before this area of the market sees any significant
growth.
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A number of other charities have sought out consolidation opportunities, with

21% of those questioned by PwC for its latest instalment of Managing in a
Downturn surveys (published in March 2013) revealing that they had merged
or were considering merging with another charity. A recent example of this is
the high-profile merger of Save the Children with Merlin, which was
announced in July 2013. According to a spokesperson at the time, the merger
was undertaken in order to secure a more sustainable future for Merlins work
and to create a world-class humanitarian health force. It is thought that the
merger will prove particularly beneficial to Merlin, which provides medical
expertise to some of the poorest areas in the world, as it will allow the charity
to expand its global reach and provide healthcare to more of worlds most
vulnerable people.
SOCIAL
Social Investment and the Big Society a Success?
Prior to the 2010 General Election, the Big Society became a flagship initiative
designed by the UK Conservative Party as part of its general election manifesto.
Since forming the Coalition Government following the election, the Big Society
now forms a part of the legislative agreement between the Conservatives and
the Liberal Democrats, with the Government formally publishing its social
investment strategy in 2011, which outlined its aim to grow social investment
to become the third pillar of finance within the voluntary sector in the future,
alongside traditional philanthropy and Government grants.
The aim of the Big Society was to introduce support and develop talent,
innovation and enterprise to deliver social impact. In this way, the Government
hoped to take power away from politicians and put it in the hands of local
communities, in order to meet the specific social needs in their area. Although
many critics have raised concerns over the Governments Big Society directive,
with some even going so far as to suggest that it has already failed following
the ongoing public sector cuts, with statutory funding cuts of 3.3bn expected
up until 2015/2016, measures have been introduced to combat this, such as the
launch of Big Society Capital in early 2012, which was formed in order to
develop a strong, diverse and sustainable social investment market in the UK,
by providing funding taken from dormant bank accounts in the UK. As part of
its current policy strategy, the Government has also pledged to increase the
amount of money available for social investment, increase demand for social
investment and create an environment that encourages social investment
opportunities, in order to stimulate growth within this particular market over
the next few years.
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Another criticism that has been voiced by those in the voluntary sector is the
repayment model which will form part of social investment partnerships, and
will see investors expect not only social returns, but also financial returns, thus
leading some organisations to question how they would be expected to pay
back the money received via a social investor. Another problem has been the
decline observed in philanthropic giving in the UK over the past few years, with
the total amount donated by some of the highest-paying donors falling to
1.2bn in 2010/2011, down from 1.3bn in 2009/2010, according to Coutts
Million Pound Donors Report 2012. The continued decline of philanthropic
donations in recent years is likely to come as a knock for Camerons Coalition
Government, which sees philanthropy as an essential part of the social
investment market of the future and the Big Society initiative.
Despite the ongoing criticism of the Big Society scheme and questions
surrounding the plausibility of social investment within the voluntary sector,
Big Society Capital (BSC) observed significant growth during 2012, with the
organisation committing 56m to 20 different intermediaries by the end of
2012. BSC is expected to see further growth during 2013, with the group aiming
to commit between 75 and 100m in up to 20 new investments over the
following year. The organisation has also outlined plans to significantly raise
levels of matching investment alongside its own commitments, in order to
further boost the social investment market in the UK. Nevertheless, it is likely
that further clarification is needed regarding the deployment of social
investment models before the market is able to see substantial growth. In
addition, the Government will need to address concerns raised by
organisations operating within the voluntary sector if growth is to be
encouraged, with a survey undertaken by PwC in March 2013 revealing that
only eight respondents (out of the 427 questioned) had used social investment
products, while 79% had not even considered them an option.
The Problem of Corporate Social Responsibility

Despite initiatives by the Government to improve the transparency and
accountability of big business following issues surrounding tax avoidance by
large firms, such as Google, Amazon and Starbucks in the UK, problems
surrounding corporate social responsibility (CSR) have continued to arise in
recent years. The factory collapse in Bangladesh, which belonged to bargain
clothes retailer Primark and resulted in over 1,100 deaths in early 2013, is just
one example of this, as is the BP oil spill of 2010, which has continued to remain
a major source of media interest in recent years.
Although companies have invested significant funds into CSR programmes,
concerns regarding the transparency of corporations, in terms of their ethical
responsibility towards the communities in which they operate and the
sustainability of their activities, have continued to be raised by both the media
and consumers in the UK. According to Klara Kozlov, spokesperson for the CAF,
CSR is no longer just about money, but about the integration of a charities
mission and aims into the business that it is partnering, i.e. through employee
engagement and operational partnerships:
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Its not just about money. [Through partnerships] charities can

access the fundraising potential of employees, and skills and
assets.
Partnerships such as Marks & Spencers (M&S) Shwopping initiative in
conjunction with Oxfam; and Boots joint venture with Macmillan Cancer
Support, are example of particularly successful initiatives, and have resulted in
rewards on both sides. Over the past 5 years, 11 million items have so far been
donated to Oxfam via M&S stores, raising 8m for the charity, while Boots link
up with Macmillan Cancer Support has resulted in the introduction of 500
Macmillian Information Pharmacists across Boots stores in the UK, providing
face-to-face advice to cancer sufferers and their families. In this way, CSR
partnerships become mutually beneficial to both the charity and the
corporation in question, thus fulfilling the business objectives of both parties.
TECHNOLOGICAL
Charities Still Not Using Social Media Effectively
Over the past decade or so, consumer penetration across social networking
sites has continued to increase, with recent figures compiled by Fanalyzer (as
of 20th September 2012) revealing that there are now 41 million Facebook
users in the UK, while research undertaken by The Guardian (as of May 2012)
showed that Twitter now has around 10 million users in the country. The rising
popularity of social media networking sites of late has caused much to be made
of the potential marketing and PR opportunities that such sites could offer to
businesses, as well as organisations operating within the voluntary sector.
However, although the set up costs involved in establishing a presence on such
sites can be relatively cheap for organisations a bonus for over-stretched
charities, particularly in light of the current economic situation many have
questioned what the best strategy is to undertake in order to obtain the best
return on investment (ROI).
A study undertaken by Unity Trust Bank in 2012 in conjunction with Social
Misfits Media entitled About That First Tweet: A Practical Guide to Social Media
for Charities & Social Enterprises, which questioned 186 small- and
medium-sized UK charities and social enterprises, revealed that while a
significant proportion have a presence on the leading social networks 75%
were on Facebook and 70% on Twitter the majority of organisations were
still not using such sites efficiently, effectively, or strategically, as they would
like, mainly due to a lack of skills, time or understanding. Lack of integration
with wider group strategies, missions and aims, was also listed as a major
challenge, with only 8% of respondents revealing that their social media
presence was very integrated with their wider communications and
fundraising strategies. However, this trend is likely to change in the future,
with charities continuing to increase their presence and interactions online via
social media in recent years, with recent research undertaken by Visceral
Business for its Charity Social 100 Index, which covered the 6-month period
ending September 2012, revealing that charities in the UK had doubled their
support on key social media channels over the past year.
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Having a social media presence provides a number of key benefits to charities,

providing a low-cost marketing channel for such organisations, as well as an
innovative and, importantly, a modern means of communication. The social
networking channel utilises a wide audience, which nowadays is also a key
draw for many charitable organisations seeking to grow their membership. In
addition, a presence on social media can help to modernise a brands identity
by helping to increase online support, boost donations, share success stories,
engage directly with followers, encourage people to sign up to new
campaigns, recruit volunteers and demonstrate the impact of the charitys
work, i.e. through online videos or viral campaigns.
One particular success story on social media has been Save the Childrens global
campaign on child malnutrition, which saw the charity host a multi-lingual
global conference on social micro-blogging site, Twitter, which allowed users
from across the world to participate in the conversation. In addition, Save the
Children used a twebevent platform as a second online space in which the
conference could be followed, and which included live-stream press
conferences that were happening simultaneously. Using the hashtag
#HiddenCrisis, the social media campaign undertaken by Save the Children
reached 5.2 million people globally in just one day, covering six continents and
at least 30 countries, and was heralded as an all-round success in terms of social
media engagement with the brand.
It is likely that, as companies become more attune to the creative and strategic
skills necessary for managing a social media campaign and maintaining a good
online brand presence, bigger rewards and ROI will result in the future.
Although, it is likely that significant investment in staff knowledge regarding
social media will be required in order for charities to reap the benefits involved.
Mobile Giving
In recent years, mobile technology uptake in the UK and indeed across the
globe has continued to increase in line with improved technologies and
Internet connectivity, with research recently published by telecommunications
regulator, Ofcom, showing that around 58% of the population owned a
smartphone in 2012, and almost a fifth (19%) owned a tablet computer. The
rising popularity of smartphones has not gone unnoticed by the charity sector,
with many of the larger charitable organisations now offering donations by
text. According to a report published by premium rate phone services
regulator, Phonepay Plus, more than 66m was donated by text during 2012,
compared with just 32m in 2011, with one in ten people in Britain donating
using premium rate text messages last year. Not only do text donations offer
a fast and easy way for people to donate, but this particular method of giving
is also attractive to younger donators, particularly those aged between 18 and
34 years old who are generally the least likely to donate to charity with
around 25% of people belonging to this age group estimated to have donated
to charity in 6 months ending December 2012, according to Phonepay Plus.
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A number of charities now offer a text messaging donation service via their
website, which is increasingly being supported by campaigns on trains and
advertising billboards, as well as via television events, such as Comic Relief,
Children in Need and ITVs Text Santa, with the latter relying primarily on
donations via texts. Various text donation systems have been developed to
support the growth of donating via text. One of the most popular mobile
service for charities is JustGiving, which also benefits from a tie-in with
Vodafone, called JustTextGiving. JustGiving allows charities to utilise their
mobile donation system, which can be embedded on the charitys website.
Since its launch in 2001, JustGiving has enabled over 21 million people to raise
1.5bn for over 13,000 charities. The success of JustGiving in recent years has,
however, led to an increasingly competitive marketplace, with both Virgin and
BT launching their own text donation services in recent years
VirginMoneyGiving and MyDonate, respectively.
The growth in text donations has not only been made possible by technological
innovations and the rising uptake of smartphones in the UK, but also by the
support of UK regulator Phonepay Plus, as well as the backing of such services
by telecommunications providers, such as BT, Vodafone and Virgin.
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7. The Future
OVERVIEW
General Economic Forecasts
Despite concerns in early 2013 that the UK could be on its way to a triple-dip
recession, figures published by National Statistics for the first quarter of 2013
revealed that UK gross domestic product (GDP) actually grew by 0.3% between
Q4 2012 and Q1 2013, and by 1.6% in terms of current prices over the same
period. At the same time, the British Chambers of Commerce (BCC) revealed
that it had upgraded its long-term growth forecasts for the UK over the next
3 years, with the organisation estimating output to increase by 0.9% during
2013, up from a previous growth prediction of 0.6%. The BCC also revealed
that it expects GDP to rise by 1.9% during 2014 and by 2.4% in 2015. However,
the BCC warned that growth is still too weak and that the economy will still
face challenges from both domestic and overseas markets.
Economic forecasts published by National Statistics, however, are less
promising than those released by the BCC, with no significant GDP growth
expected until at least 2015, although inflation is likely to remain relatively
stable, while unemployment should continue to fall over the next 5 years.
Table 7.1: Economic Forecasts (000, % and million), 2013-2017

2013
2014
2015
2016
2017
UK resident
population (000)
63,758
64,271
64,776
65,271
65,755
GDP growth (%)
0.8
1.6
2.1
2.1
2.2
Inflation (%)
3.3
3.0
3.2
3.3
3.6
1.58
1.56
1.50
1.44
1.33
Unemployment
(million)
GDP gross domestic product
at retail price index (RPI)
actual number of claimants; claimant count measures the number of people claiming
Jobseekers Allowance
Source: National Population Projections, 2010-based projections, National

Statistics website/Forecasts for the UK Economy, May 2013, Treasury Independent
Average Crown copyright material is reproduced with the permission of the
Controller of HMSO (and the Queens Printer for Scotland)
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The Effect on Charities and the New Normal

Continued economic strain in the UK has had a severe effect on charities, many
of which have been hit by a triple whammy of rising costs, increased demand
for services and declines in income, particularly within statutory funding, which
has been hit hard by the public sector funding cuts meted out by the
Government in line with its wider austerity measures. According to a survey
published by PwC as part of its Managing in a Downturn series, the conditions
in which UK charities are now trading could be called the new normal, with
no significant changes likely to be observed within the economy over the next
few years, while statutory funding and fundraising are expected to continue
to remain tough for charitable organisations.
Instead, charities are likely to look to other income streams in order to generate
funds, such as retail and trade, and social investment. Indeed, according to
PwCs survey, 85% of charities questioned were found to be exploring new
fundraising options, while 63% were planning to draw on reserves and 69%
had undertaken collaborative activity with others, most commonly in the form
of joint programmes or services operations. In addition, 50% had taken steps
to reduce wages and salary costs; 55% had increased trading or social
enterprise activity since the start of the downturn; and 21% had merged or
were considering merging with another charity, in order to combat financial
constraints and continue to deliver services to the community.
Despite the tough environment facing the voluntary sector, along with further
planned cuts to statutory funding, which are thought to measure around
3.3bn up until 2015/2016, almost half (46%) of charities surveyed by PwC said
that they were quite optimistic about the next 12 months (up from 40% in
the previous year), while 15% were very optimistic (up from 7% in 2011/2012).
At the same time a decline was observed in the proportion of respondents who
were quite worried, which fell from 40% in 2011/2012 to 27% in 2012/2013.
Table 7.2: Optimist of Charities for the Outlook of Their

Organisation Over the Next 12 Months (% of respondents),
2011/2012 and 2012/2013
2011/2012
2012/2013
Very optimistic
15
Quite optimist
40
46
Quite worried
40
27
Very worried
Indifferent
Table continues...
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Table 7.2: Optimist of Charities for the Outlook of Their

Organisation Over the Next 12 Months (% of respondents),
2011/2012 and 2012/2013
...table continued
Dont known/unsure
Total
2011/2012
2012/2013
100
100
Base: 2011/2012 354; 2012/2013 344

Note: totals may not sum due to rounding.
Source: Managing in the New Normal Adapting to Uncertainty, March 2013

PwC
FORECASTS
Although the double-dip recession came to an end in the third quarter of 2012,
the economy has continued to remain in a weakened state, with gross domestic
product (GDP) growth of just 0.8% forecast for 2013. At the same time,
inflation and unemployment have continued to remain high. This suggests that
no significant economic improvement will be observed until at least 2014/2015,
although growth is still likely to remain relatively slow thereafter. Not only will
the after-effects of the double-dip recession have an impact on public
charitable donations, but funding from statutory sources is also expected to
remain low, following the ongoing implementation of public spending cuts by
the Coalition Government, which will continue to affect both national bodies
and local council funding within the UK.
According to a report undertaken by NCVO entitled Counting the Cuts 2013,
net public expenditure cuts in 2011/2012 amounted to around 8bn (as
estimated by outturn data from the Office for Budget Responsibility [OBR]).
Furthermore, the significant frontloaded cuts to local authority (LA) budgets
over the same year stood at approximately 6.8bn. This means that if cuts made
to voluntary sector statutory funding were proportionate to cuts in public
expenditure, the sector would have lost out on around 396m in funding from
statutory sources during 2011/2012.
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The report from the NCVO goes on to reveal that Freedom of Information
requests made by Compact Voice, showed that 71 of 141 (50%) of LAs that
responded had disproportionately cut voluntary sector grant funding in
2011/2012, thus indicating that the scale of the cuts so far could be higher than
396m. In line with the cuts outlined for the current Spending Review period
(2010 to 2015/2016, the NCVO expects net public expenditure in 2017/2018 to
be 13.5bn lower than it was in 2010/2011 (using 2010/2011 prices). Assuming
that the voluntary sector experiences proportionate cuts, therefore, funding
for the sector will be 1.7bn lower by 2017/2018 than it was in 2010/2011;
however, if disproportionate cuts were made to the sector, funding could be
as much as 2.1bn lower than in 2010/2011.
The ongoing cuts made to public sector funding and local councils has
coincided with a period of high demand for charitable giving, with many
people being affected by the continuing high unemployment rates and
below-inflation increases in household disposable income. Indeed, according
to a report published by PwC in 2013, entitled Managing in the new normal
adapting to uncertainty, 67% of charities surveyed by PwC reported an
increase in demand for services during 2012, with 72% expecting a higher
demand in 2013. Fundraising has also remained challenging in terms of public
sources, with 93% of fundraisers revealing that the fundraising climate was
tougher during 2012, and 89% expecting this to remain the case in 2013.
Despite this, donor attrition improved slightly during 2012, although securing
new donors was much more difficult, with a decline in major donors seen in
particular.
Although cuts to public funding are expected to continue to affect the charity
sector over the next few years, statutory funding will remain one of the most
significant income streams for many charitable organisations across the UK.
Nevertheless, the ongoing austerity measures and their influence on public
spending is expected to lead to a dramatic shift in the way in which charities
obtain funding, with many turning to other areas of funding, in particular,
social investment and trading. Other areas of funding that will continue to
remain important will include individual donations, philanthropy, corporate
partnerships, and lottery and foundation funding.
Despite the economic pressures affecting the charity sector following the
double-dip recession, along with declines in income from statutory sources, Key
Note predicts total income generated by registered main charities in England
and Wales to increase incrementally year-on-year between 2013 and 2017.
Overall, total income within the charity sector is expected to grow by 5.7% over
the 5-year forecast period from 162.34bn in 2013 to 171.55bn in 2017. It
should be noted, however, that while medium- to large-sized charities will
continue to observe growth year-on-year, smaller charities may not fare so well
initially, with Key Note estimating charities with incomes of between 0 and
10,000 to observe a small decline between 2013 and 2014, before recovering
from 2015 thereafter. It should also be mentioned that the performance of the
charity sector over the next few years will be highly dependent on the wider
performance of the UK economy, as well as any changes to Government policy
that may be introduced, particular in regard to regulations relating to
charitable giving, taxation and public spending.
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June 2013/2017
2013
2014
2015
Number of
Main Charities
Total Annual
Income (m)
Number of
Main Charities
Total Annual
Income (m)
Number of
Main Charities
Total Annual
Income (m)
0-10,000
69,431
230
69,401
229
69,420
231
10,001100,000
52,660
1,871
53,110
1,901
54,630
1,999
100,001500,000
20,250
4,470
21,721
4,792
22,533
5,329
501,000-5m
8,228
12,251
8,351
13,003
8,628
13,952
5m+
1,892
40,955
1,901
41,750
1,920
42,937
61,675 157,131
64,448
Income Bracket
Subtotal
Not yet known
Total
152,461
9,879
162,340
59,777 154,484
-
9,891
59,777 164,375
9,781
61,675 166,912
64,448
Table continues...
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June 2013/2017
...table continued
2016
2017
Number of
Main Charities
Total Annual
Income (m)
Number of
Main Charities
Total Annual
Income (m)
0-10,000
69,455
233
69,461
235
10,001100,000
55,421
2,150
56,110
2,350
100,001500,000
23,710
5,852
25,111
6,199
501,000-5m
8,911
14,522
9,301
15,036
5m+
1,942
44,012
1,970
45,599
66,769 161,953
69,419
Income Bracket
Subtotal
Not yet known
Total
159,439
9,699
169,138
9,601
66,769 171,554
69,419
Source: Key Note
FUTURE TRENDS
On-the-Go Giving
The trend towards mobile giving is expected to continue to increase over the
next few years, driven by the continued uptake of smartphone and tablet
computer technology, in addition to the increasing sophistication of mobile
technology. According to research published by premium rate telephone
service regulator, PhonePay Plus in December 2012, donating by text in the UK
is set to increase by a massive 880% between 2010 and 2015. Statistics compiled
by the regulator revealed that during 2012 in the UK, one in ten people
donated to a charity by text, compared with just one in 100 who donated in
this way in 2010/2011 reflecting the continued migration to mobile
technologies across the country.
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Not only does the transition to text donations capture the growing audience
now utilising mobile technologies, but it also offers a convenient and easy
solution for donators. In addition, offering a donation service via mobile is
often more attractive to younger donators an age group that has often
proved elusive or harder to reach by charitable organisations in the past.
Indeed, research published by PhonePay Plus for its Annual Market Review
showed that 25% of 18 to 34 year-olds had donated via text in the 6 months
ending December 2012, compared with just 8% of those aged 35 or older.
The convenience of donating via text can also boost spontaneous giving, with
campaigns often supported by television appeals and posters on trains, which
feature the text number. Mobile giving is also supported by the increasing
sophistication of text donation services, as provided by JustGiving, Vodafone,
Virgin and BT, among others, many of which have waived their fee, thus
allowing all money donated in this way to be given to charity.
Social Investment
In recent months, the Government has stepped up its efforts in growing the
social investment market, which is aimed at providing an alternative income
stream to charities and other social enterprises operating within the UK, and
which, if successful, should help to alleviate some of the added strain put on
the charity sector in recent years following the public sector funding cuts. The
social investment model has also been created to establish a more sustainable
channel of income for charities and social enterprises, providing investors with
a return on investment (ROI) not only in terms of social and community
wellbeing, but also financially, with many social investment models requiring
recipients to pay back funds invested at a later stage.
In order to encourage social investment within the UK, the Government has so
far committed to a tax relief for social investment; established a 10bn social
incubator fund; and created a 20m social outcomes fund. It also set up Big
Society Capital (BSC) in early 2012, which uses funds from dormant bank
accounts in the UK in order to back a number of social and community
initiatives every year. So far, BSC has proved relatively successful, with the
organisations first annual report revealing that it had pledged 56m to 20
different intermediaries by the end of 2012, and was aiming to contribute a
further 75m to 100m to 20 new investment over 2013.
According to a research report published by the City of London Economic
Development in July 2013, entitled Growing the Social Investment Market: The
Landscape and Economic Impact, the UKs social investment market surpassed
200m for the first time in 2011/2012. The report also revealed that the market
holds a potential future growth in funds under management of approximately
35% per annum over the next 3 years, representing a total capital expansion
of around 650m. This growth is likely to be stimulated by the Governments
ongoing efforts to expand the social investment market in the UK, in keeping
with its original 2010/2011 pledge.
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Further plans to achieve these aims were outlined in the Governments 2013
Progress Report and were as follows:
Increasing the supply of investment the Government aims to attract new
investors to the social investment market by introducing a tax relief for
investment in social enterprise, which it is due to consult formally on by
summer 2013, with the relief expected to be introduced in the Finance Bill
2014. The Government is also making further efforts to strengthen the UKs
position as a worldwide hub for social investment. It also launched the
Department for International Development (DFID) Impact Programme,
which will prove social investment in developing countries based
Sub-Saharan Africa and South Asia worth 100m, and hosted the G8 Social
Impact Investment Forum during the G8 conference, in order to showcase
the UKs social investment model to other leading superpowers in the world.
Increasing demand for investment the Government launched a 10m
Social Incubator Fund, which supports incubator organisations that provide
finance to social venture start-ups. The Social Incubator Fund will sit
alongside the existing Investment and Contract Readiness Fund (ICRF), which
provides grants of between 50,000 and 150,000 to high growth potential
social ventures. In addition, the Government has pledged to enable a greater
number of Social Impact Bonds (SIBs) over 2013, which is to be facilitated by
the launch of the Centre for Social Impact Bonds (in November 2012) to
promote and support the development of more and better SIBs, as well as
the launch of the 20m Social Outcomes fund a central top-up fund for
SIBs.
Improving the Environment the Government aims to achieve this aim by
removing barriers to investment and strengthening collaboration. These
aims will be facilitated by the introduction of the Public Service (Social Value)
Act, which was introduced in January 2012, and which will require LAs to
consult on how they can improve the social impact of public service contracts
before they start the procurement process. The Government will also help to
improve the environment for social investment by removing red tape
surrounding the existing legal and regulatory framework that governs social
investment, and by continuing to support Inspiring Impact, a programme
which aims to make high-quality measurement the norm for charities and
social enterprises by 2022. In addition, the Government will continue to work
closely with strategic partners in the sector, such as BSC, NESTA and the Big
Lottery Fund.
Although these measures outlined by the Government should go towards
growing the social investment market further in the future, the market is still
very much in its infancy, with only a very small proportion of charities actually
exploring this new area of funding. One of the main reasons behind the
tentative feeling towards social investment among charities, according to PwC,
was the idea of repayable finance, with 33% of respondents citing
management (16%) and trustee (17%) discomfort with taking out loans,
suggesting that this particular issue will need to be addressed by the
Government before any significant move forward can be made.
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Trading
Despite the economic pressures that have faced charities in recent years
following the double-dip recession, retail operations and trading undertaken
by charities has actually increased over the past few years, with a report
undertaken by the Charity Retail Association (CRA) during 2012 revealing that
annual income for UK charity shops hit an all time high of almost 1bn during
the year, up by 34% from 2011. The growth of charity retail operations reflects
the increased reliance on alternative income streams following the reduction
of funding via statutory sources in line with the Governments austerity
measures, as well as the rising number of shoppers turning towards charity
shops during the economic downturn in order to save money.
Supply to charity shops has also been boosted by initiatives such as Marks &
Spencers (M&Ss) and Oxfams Shwopping scheme, which has so far seen
customers donate around 3.6 million items of clothing in stores to pass on to
Oxfam for recycling, re-use or re-selling. Other campaigns, such as the
Nationwide initiative, Choose Charity Shops, which is run by the CRA, is also
aimed at increasing over-the-counter donations of unwanted items to charity
shops in the UK, with many people now opting to sell on their unwanted items
for cash during the double-dip recession, in order to raise extra funds. So far,
more than 5,500 shops nationwide, including Oxfam, Cancer Research UK, the
British Heart Foundation, the British Red Cross and Barnados have signed up
to the campaign, along with hundreds of local hospices and smaller charities.
It will, however, remain to be seen whether charity retail shops will continue
to perform well in the future, following substantial high-street closures in
recent years, which has been caused by the ongoing transition towards online
sales channels, as well as the added strain resultant from the ongoing economic
downturn. Indeed, recent results produced by PwC show that retailers in the
UK are now closing at a rate of 14 per day. Nevertheless, further statistics
compiled by PwC reveal that trading and retail remain an import source of
income for UK charities, with 31% stating that trading was their most
important source of income in 2012/2013. In addition, 40% of charities
questioned by PwC (as of March 2013) suggested that they were hoping to
increase trading over the next 12 months.
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Further Sources
8. Further Sources
Associations
Association of Charitable Foundations
Central House
14 Upper Woburn Place
London, WC1H 0AE
Telephone: 020-7255 4499
http://www.acf.org.uk
Association of Chief Executives
of Voluntary Organisations
Regents Wharf
8 All Saints Street
London, N1 9RL
Telephone: 020-7014 4600
http://www.acevo.org.uk
Association of Fundraising
Consultants
Suite 316
Linen Hall
162-168 Regent Street
London, W1B 5TD
Telephone: 07932-101 058
http://www.afc.org.uk
25 Kings Hill Avenue
Kings Hill
West Malling
Kent, ME19 4TA
Telephone: 03000-123 000
Fax: 03000-123 001
https://www.cafonline.org
Catalysts for Change: How
Philanthropists are Forging New Paths
to Long-Lasting Impact 2013
UK Giving 2012: An Overview of
Charitable Giving in the UK,
2011/2012
Key Note Ltd 2013
Charity Finance Group

CAN Mezzanine
49-51 East Road
London, N1 6AH
Telephone: 08453-45 3192
Fax: 08453-453 193
E-mail: info@cfg.org.uk
http://www.cfg.org.uk
Charity Retail Association
356 Holloway Road
London, N7 6PA
Telephone: 020-7697 4080
Fax: 020-7697 4252
E-mail: mail@charityretail.org.uk
http://www.charityretail.org.uk
24 Stephenson Way
London, NW1 2DP
Telephone: 020-7391 4800
Fax: 020-7900 2065
http://www.dsc.org.uk
Disasters Emergency Committee
Ground Floor
43 Chalton Street
London, NW1 1DU
Telephone: 020-7387 0200
Fax: 020-7387 2050
http://www.dec.org.uk
Fundraising Standards Board
65 Brushfield Street
London, E1 6AA
Telephone: 03333-218 803
Fax: 03333-218 804
E-mail: info@frsb.org.uk
http://www.frsb.org.uk
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Charity Funding
Further Sources
Institute of Fundraising
Park Place
12 Lawn Lane
London, SW8 1UD
Telephone: 020-7840 1000
E-mail: enquiries@institute-of
-fundraising.org.uk
http://www.institute-offundraising.org.uk
National Association for
Voluntary and Community Action
The Tower
2 Furnival Square
Sheffield, S1 4QL
Telephone: 0114-278 6636
E-mail: navca@navca.org.uk
http://www.navca.org.uk
National Council for Voluntary

Organisations
Society Building
8 All Saints Street
London, N1 9RL
Telephone: 020-7713 6161
Fax: 020-7713 6300
E-mail: ncvo@ncvo-vol.org.uk
http://www.ncvo-vol.org.uk
Counting the Cuts 2013
UK Civil Society Almanac, 2013
12 Angel Gate
320-326 City Road
London, EC1V 2PT
Telephone: 020-7713 9326
Fax: 020-7278 9068
E-mail: network@ukcommunity
foundations.org
http://ukcommunityfoundations.org
Publications
Charity Times
Perspective Publishing
6th Floor
3 London Wall Buildings
London, EC2M 5PD
http://www.charitytimes.com
Key Note Ltd 2013
The Guardian
Kings Place
90 York Way
London, N1 9GU
Telephone: 020-3353 2000
http://www.guardian.co.uk
108
Charity Funding
Further Sources
General Sources
Kantar Media
Ealing Gateway
26-30 Uxbridge Road
Ealing
London, W5 2BP
Telephone: 020-8433 4000
Fax: 020-8433 4001
http://www.kantarmedia.com
Nielsen
Atrium Court
The Ring
Bracknell
Berkshire, RG12 1BZ
Telephone: 01344-469 100
Fax: 01344-469 102
E-mail: mediacommunication
uk@nielsen.com
http://www.nielsenmedia.co.uk
Government Publications
Cabinet Office
70 Whitehall
London, SW1A 2AS
Telephone: 020-7276 1234
E-mail: publiccorrespondence@
cabinet-office.gsi.gov.uk
https://www.gov.uk/government
/organisations/cabinet-office
Community Life Survey, Q2 and Q3
2012-2013 (August 2012-January
2013)
Growing the Social Investment
Market: 2013 Progress Update
Department for Communities

and Local Government
Eland House
Bressenden Place
London, SW1E 5DU
Telephone: 03034-440 000
E-mail:
contactus@communities.gsi.gov.uk
https://www.gov.uk/government/
organisations/
department-for-communities-and-loc
al-government
Citizenship Survey, 2008/2009
Charity Commission
30 Millbank
London, SW1P 4DU
http://www.charitycommission
.gov.uk
HM Revenue & Customs

100 Parliament Street
London, SW1A 2BQ
http://www.hmrc.gov.uk
HM Treasury
1 Horse Guards Road
London, SW1A 2HQ
Telephone: 020-7270 4558
Fax: 020-7270 4861
http://www.hm-treasury.gov.uk
Forecasts for the UK Economy
Treasury Independent Average, May
2013
City of London Economic

Development
http://http://
www.cityoflondon.gov.uk
Growing the Social Investment
Market:
The Landscape and Economic Impact
Key Note Ltd 2013
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Further Sources
Law Commission
Steel House
11 Tothill Street
London, SW1H 9LJ
Telephone: 020-3334 0200
Fax: 020-3334 0201
http://lawcommission.justice.gov.uk
National Lottery Distribution Fund
Department for Culture Media &
Sport
100 Parliament Street
London, SW1A 2BQ
E-mail: enquiries@culture.gov.uk
https://www.gov.uk/government/
organisations/
department-for-culture-media-sport
National Statistics
Government Buildings
Cardiff Road
Newport
South Wales, NP10 8XG
http://www.statistics.gov.uk
Labour Force Survey, 2012
National Population Projections,
2010-based projections
Office for Budget Responsibility

20 Victoria Street
London, SW1H 0NF
Telephone: 020-7271 2520
E-mail: obrenquiries@obr.gsi.gov.uk
http://
budgetresponsibility.independent
.gov.uk
Public Administration Select
Committee
House of Commons
First Floor, Committee Office
7 Millbank
London, SW1P 3JA
Telephone: 020-7219 5730
Fax: 020-7219 2681
E-mail: pasc@parliament.uk
http://www.parliament.uk/pasc
Other Sources
Boston Consulting Group
20 Manchester Square
London, W1U 3PZ
Telephone: 020-7753 5353
Fax: 020-7753 5750
http://www.bcg.com
Business in the Community

137 Shepherdess Walk
London, N1 7RQ
Telephone: 020-7566 8650
E-mail: info@bitc.org.uk
http://www.bitc.org.uk
2013 Corporate Responsibility Index
British Chambers of Commerce

65 Petty France
London, SW1H 9EU
Telephone: 020-7654 5800
Fax: 020-7000 1373
http://www.britishchambers.org.uk
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Further Sources
Centre for Charitable Giving and

Philanthropy
Cass Business School
106 Bunhill Row
London, EC1Y 8TZ
http://www.cgap.org.uk
UK Corporate Citizenship in the 21st
Century
25 Kings Hill Avenue
Kings Hill
West Malling
Kent, ME19 4TA
Telephone: 03000-123 000
Fax: 03000-123 001
https://www.cafonline.org
UK Giving 2012: An Overview of
Charitable Giving in the UK,
2011/2012
Civil Society Media
15 Prescott Place
London, SW4 6BS
Telephone: 020-7819 1200
Fax: 020-7819 1201
E-mail: info@civilsociety.co.uk
http://www.civilsociety.co.uk
Compact Voice
Society Building
8 All Saints Street
London, N1 9RL
Telephone: 020-7520 2451
E-mail:
compact@compactvoice.org.uk
http://www.compactvoice.org.uk
24 Stephenson Way
London, NW1 2DP
Telephone: 020-7391 4800
Fax: 020-7900 2065
http://www.dsc.org.uk
Key Note Ltd 2013
Fanalyzer
http://www.fanalyzer.co.uk
KnowHow NonProfit
http://knowhownonprofit.org
New Philanthropy Capital
185 Park Street
London, SE1 9BL
Telephone: 020-7620 4850
Fax: 020 7620 4851
E-mail: info@thinkNPC.org
http://www.thinknpc.org
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C1
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junior managerial,
C2
Skilled working class
Skilled manual workers
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Those at lowest levels of

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Key Note publishes over 180 titles each year, across both the Key Note and Market Assessment
product ranges. The total range covers consumer, lifestyle, financial services and industrial
sectors.
Title
Edition
Published
Title
Key Note Current Reports
C2DE Consumer
ABC1 Consumer
2012
Access Control
13
2013
Accountancy
16
2013
Activity Holidays
2012
Advertising Agencies
2012
Airlines
23
2013
Airports
16
2013
All-Inclusive Holidays
2012
Alternative Healthcare
2012
Arts & Media Sponsorship
2011
Automatic Vending
26
2013
Automotive Services
2012
20
2012
Autoparts
B
Edition
Published
2013
18
2011
Car Dealers
2013
Care Homes
2013
Carpets & Floorcoverings
17
2013
Catering Equipment
15
2012
Catering Market
21
2009
Canned Foods
Charity Funding
2013
15
2013
Childcare
2012
Childrens Publishing
2012
Childrenswear
2011
Chilled Foods
17
2012
China & Earthenware
29
2013
Cigarettes & Tobacco
26
2012
Closed-Circuit Television
14
2013
Clothing & Footwear Industry
13
2010
Clothing Manufacturing
16
2011
Clothing Retailing
10
2013
Coffee & Sandwich Shops
2013
Commercial Dynamics in
Financial Services
2010
Chemical Industry
B2B Marketing
2011
Baby Products
2010
Baths & Sanitaryware
16
2013
Betting & Gaming
25
2012
Biscuits & Cakes
20
2013
Book Publishing
22
2012
2013
Bookselling
18
2012
Commercial Insurance for Small

Businesses
2012
Bread & Bakery Products
28
2013
Commercial Vehicles
16
2011
Breakfast Cereals
17
2013
Computer Hardware
10
2012
Breweries & the Beer Market
30
2013
Computer Services
10
2012
Bricks & Tiles
16
2010
Computer Software
2011
Book Retailing on the Internet
Bridalwear
2010
Condiments & Sauces
2008
Builders Merchants
18
2013
Confectionery
31
2013
Building Contracting
12
2013
Construction Industry
11
2009
Building Materials
15
2013
Consumer Credit & Debt
2012
Bus & Coach Operators
11
2012
Consumer Magazines
18
2011
Business Postal Services
2013
Contact Centres
2013
Business Press
15
2012
Contraception
2011
Business Travel
2013
Contract Catering & Foodservice

Management
22
2013
Contract Cleaning
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2013
Cooking & Eating Habits
2012
Cooking Sauces & Food

Seasonings
2013
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Title
Corporate Hospitality
Corporate & Promotional
Giftware
Edition
Published
2012
Title
Edition
Published
European Trends in Food

Shopping
2009
13
2013
2013
Exhibitions & Conferences
Cosmetic Surgery
10
2012
Cosmetics & Fragrances
25
2012
Courier & Express Services
18
2013
Fast-Food & Home-Delivery

Outlets
26
2012
2012
Film Market
2009
2012
Financial Services Marketing to

BCs
2009
Cruise Market
Customer Magazines
Customer Relationship
Management
2013
Customer Services in Financial

Organisations

DEs
2010

Start-Up Businesses & the SelfEmployed
2010

the Affluent
2009
2013
Debt Management (Commercial

& Consumer)
2009
2013
11
2010
Diet Foods
2013
Financial Services Organisations

on the Internet
Digital Broadcasting
2012
Fire Protection Equipment
2012
Digital Communications
2012
Fish & Fish Products
15
2012
Direct Insurance
2010
Fitted Kitchens
12
2013
Direct Marketing
20
2012
Food Industry
20
2010
Direct Mortgages
2012
Football Clubs & Finance
2013
Discount Retailing
2013
Footwear
17
2012
Disposable Paper Products
14
2013
Forecourt Retailing
2012
Distribution Industry
10
2009
Franchising
13
2012
DIY & Home Improvements

Industry
11
2009
Freight Forwarding
18
2011
Domestic Heating
15
2013
Frozen Foods
26
2012
Drinks Market
19
2009
Fruit & Vegetables
23
2013
Fruit Juices & Health Drinks
15
2013
Functional Foods
2010
Further & Higher Education
2013
14
2012
Defence Equipment
E-Commerce: The Internet

Grocery Market
2013
E-Commerce: The Internet

Leisure & Entertainment Market
2008
Garden Equipment
10
2011
Gas Industry
2012
2013
General Insurance
13
2010
20
2011
17
2013
2012
Electrical Contracting
Electrical Wholesale
Electricity Industry
2012
Giftware
Electronic Banking
2008
Glassware
Energy Industry
2010
Green & Ethical Consumer
Equipment for the Disabled
2012
Greetings Cards
27
2012
2013
E-Recruitment
2012
Grey Consumer
Estate Agents
18
2011
2012
Hand Luggage & Leather Goods
16
2012
Estate Agents & Services
17
2012
Health Clubs & Leisure Centres
12
2013
European Long-Term Insurance
2008
Healthy Eating
2008
European Renewable Energy
2008
Holiday Purchasing Patterns
2012
European Short Breaks
2008
Home Entertainment
2012
21
2013
Ethnic Foods
European Telecommunications
2010
Home Furnishings
European Tourist Attractions
2010
Home Shopping
15
2013
Horticultural Retailing
18
2013
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Title
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Published
2013
Hotels
27
2013
Natural Products
Housebuilding
20
2012
Newspapers
Hot Beverages
Household Appliances (Brown

Goods)
Household Appliances (White
Goods)
13
18
2013
2012
Title
Published
2012
19
2012
Non-Food Sales in Supermarkets
2013
Non-Metal Recycling
2012
Nutraceuticals
2008
2010
22
2012
2012
Household Detergents &

Cleaners
17
2012
Office Equipment Industry
Household Furniture
19
2011
Office Furniture
Offshore Oil & Gas Industry
Ice Creams & Frozen Desserts
Edition
Ophthalmic Goods & Services
19
2013
Opticians & Optical Goods
2010
Organic Food & Drink
2012
OTC Pharmaceuticals
16
2013
2009
15
2013
2010
13
2008
16
2013
2013
Insurance Companies
12
2009
Insurance Industry
10
2009
Insurance Market
13
2012
Insurance Prospects
2008
Own Brands
Internet & Telephone Banking
2013
Internet Advertising
2013
Packaging (Food & Drink)
2012
Packaging (Glass)
IT Security
11
2013
Packaging (Metals & Aerosols)
13
2012
IT Training
14
2012
Packaging (Paper & Board)
16
2012
Packaging (Plastics)
Independent Financial Advisers
IT Recruitment
Jewellery & Watches
27
2013
2012
11
2013
Legal Services to Consumers
2013
Leisure in the Home
2010
Leisure Outside the Home
2010
Lifestyle Magazines
2011
11
2013
Local Government Services
2010
Low-Fat & Reduced-Sugar Foods
2008
Kitchenware
L
Laboratory Equipment
Lingerie
Marketing in the Digital Age
2012
Meat & Meat Products
23
2013
Medical Equipment
18
2012
Medical & Health Insurance
2012
Men & Womens Buying Habits
2012
Mens Toiletries & Fragrances
2013
Metal Recycling
2013
26
2012
Mobile Marketing
2009
Mobile Phones
Motor Finance
Motor Industry
Music Industry
Milk & Dairy Products
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Over-50s Consumer
16
2012
Pensions
2013
Personal Banking
2012
Personal Lines Insurance
2012
Personal Loans
2008
Pet Market
2013
Pharmaceuticals Industry
2008
Planning for Retirement
2008
Plus-Size Fashion
2009
Poultry
2012
Power Tools
2012
Premium Lagers, Beers & Ciders
11
2013
Printing
17
2013
Private Healthcare
23
2013
2012
28
2012
2012
13
2010
Protective Clothing & Equipment

Public Houses
Public Relations Industry
Publishing Industry
R
Rail Travel
2011
Ready Meals
14
2013
Recruitment Agencies
(Permanent)
12
2012
2012
Recruitment Agencies
(Temporary & Contract)
12
2012
2013
Renewable Energy
2012
12
2008
Restaurants
27
2013
2010
Retail Pharmacies
18
2013
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Title
Title
Edition
Published
UK Internet Market
2009
Utilities
2013
Vegetarian Foods
2012
Vehicle Breakdown Services
2012
10
2012
2013
2013
Wallcoverings & Ceramic Tiles
19
2012
Waste Management
12
2013
Edition
Published
Road Haulage
23
2012
Rural Economy
2009
13
2012
2013
Security Industry
13
2010
Shopfitting
15
2012
Vehicle Security
Shopping Centres
2013
Video Gaming
Singles Market
2012
Slimming Market
2013
Vitamins, Minerals &

Supplements
Small Businesses & Banks
2010
Small Domestic Electrical

Appliances
13
2012
Snack Foods
22
2013
2012
Sauces & Spreads

Savings & Investments
Social Media Marketing

Soft Drinks (Carbonated &
Concentrated)
Water Industry
2012
Windows & Doors
21
2012
Wine
23
2013
Women's Plus-Size Fashion
2013
Working Women
2009
12
2003
19
2012
Soup Market
2012
Spirits & Liqueurs
2012
Sports Clothing & Footwear
15
2013
Key Note Archive Reports
Sports Equipment
17
2012
Sports Market
13
2010
Aerospace
Sports Sponsorship
2013
Agrochemicals & Fertilisers
2002
26
2012
Air Freight
2005
Supermarket Own Labels
2013
Air Transport Logistics
Supermarket Services
2013
Animal Feedstuffs
Sweet & Salty Snacks
16
2010
Audio Visual Retailing
18
2011
Teenage & Pre-Teen Magazines
2012
Teenage Fashionwear
Timber & Joinery

Toiletries
Stationery (Personal & Office)
2003
11
2001
2000
Baby Foods
2006
Baths & Showers
2000
2013
Bearings
2007
21
2013
24
2011
Beds, Bedrooms & Upholstered

Furniture
2000
2013
Bottled Water
2001
Toys & Games
25
2012
Training
21
2013
Cable & Satellite TV
10
2004
Travel & Tourism Market
17
2010
Call Centres
Take-Home Trade
Tourist Attractions
Travel Agents & Overseas Tour

Operators
25
2013
Trends in Food Shopping
2008
Trends in Leisure Activities
2012
Tyre Industry
2011
2006
Cash & Carry Outlets
16
2001
Cinemas & Theatres
2001
Clothing Retailers
2000
Commercial Radio
2004
Consumer Borrowing in Europe
2004
Consumer Internet Usage
2000
Contracted-Out Services
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Convenience Retailing
12
2002
Cross-Border Shopping
2000
Customer Loyalty in the Financial

Services
2000
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Generation Y
2007
2003
Global Positioning Systems
2002
2000
Global Waste management
2070
2003
2007
Health Foods
22
2003
Document Imaging Systems
2007
Healthcare Market
10
2005
Domestic Telecommunications
2006
Dry Cleaning & Laundry Services
2005
Heating, Ventilating & Air

Conditioning
2002
In-Car Entertainment
2000
Individual Savings Accounts
2005
Industrial Fasteners
2001
Industrial Pumps
2000
Industrial Valves
2001
Internet Service Providers
2005
Internet Usage in Business
2005
Issues & Challenges in the UK Life

Assurance Market
2002
2006
Leisure & Recreation Market
15
2005
14
2002
Title
Edition
Published
Dark Spirits & Liqueurs
2004
Defence Industry
Design Consultancies
Digital TV
DINKY Market
Electronic Component
Distribution
Electronic Component
Manufacturing
Title
12
2002
11
2002
2003
12
2003
E-Shopping
2002
European Electricity Industry
2007
European Gas Industry
2007
European Oil & Gas Industry
2007
European Water Industry
2007
Issues in Higher Education

Funding
Extended Financial Families
2005
Electronic Games
Equipment Leasing
2003
Lighting Equipment
11
2000

ABC1s
2000

ABs
2006

C1C2DEs
2004

Over 60s
2004

the Retired & Elderly
2007
Free-To-Air TV
2004
Factoring & Invoice Discounting

Finance Houses
Management Consultants
10
2003
Marketing to Children 4-11
2003
Mechanical Handling
2001
Millenium Youth
2002
Mobile Telecommunications
2007
2002
Off-Trade Spirits
2004
Organic Baby & Toddler Care
2007
Over-40s Consumer
2005
14
2002
Passenger Travel in the UK
2007
Pay TV
2004
New Media Marketing

O
Paper & Board Manufacturers
Pension Extenders
2002
Photocopiers & Fax Machines
14
2005
Plant Hire
13
2007
Plastic Cards in Europe
2005
10
2003
Pre-School Childcare
2001
Private-Sector Opportunities in
Education
2001
Plastics Processing
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Edition
Published
Edition
Published
Process Plant Industry
2000
Public Transport
2001
Teenage Magazines
2007
Rail Transport Logistics
2003
Telecommunications
Teleworking
21
2007
2003
Railway Industry
2006
The Computer Market
Recycling & the Environment
2000
The Film Industry
11
2004
Retail Credit
2000
2002
The Fish Industry
2001
Retail Development
Road Transport Logistics
2001
The Legal Services Market
2005
2003
The Luggage Market
2000
The Newspaper Industry
2005
Saving Trends in Eurozone
2002
Tweenagers
2001
Short Break Holidays
2001
Short Breaks
2004
Video & DVD Retail & Hire
2005
Slimming Market
2000
Videoconferencing
2007
Small Office Home Office

Consumer
2001
Water Transport Logistics
2003
White Goods
2000
White Spirits
2005
Women Over 45
2007
Small Office Home Office

Products
2001
Sponsorship
2000
20
2003
Supermarkets & Superstores
Title
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Market Assessment 2013

Fifth Edition July 2013

In todays competitive business environment, knowledge and understanding of your

Key Note Ltd 2013

FACTORS AFFECTING THE MARKET......................................................................................6

MARKET DYNAMICS AND SEGMENTATION.....................................................................15

Key Note Ltd 2013

Table 2.8: Main Media Advertising Expenditure of Charities

ASSOCIATIONS AND UMBRELLA ORGANISATIONS.......................................................31

Key Note Ltd 2013

Top 20 UK Charities by Voluntary Income..............................................................................44

Key Note Ltd 2013

5. Corporate Funding and Financing

Key Note Ltd 2013

MARKETING AND PROMOTION...........................................................................................87

Key Note Ltd 2013

Government Publications ....................................................................................................109

Understanding Consumer Survey Data

Number, Profile, Penetration..............................................................................................115

Key Note Research

The Key Note Range of Reports

Key Note Ltd 2013

Key Note Ltd 2013

Key Note Ltd 2013

Key Note Ltd 2013

According to a leaked report compiled by the Association of Chief Executives

Key Note Ltd 2013

Key Note Ltd 2013

Key Note Ltd 2013

Charitable Incorporated Organisations

Key Note Ltd 2013

Key Note Ltd 2013

Small Charitable Donations Act 2012

Key Note Ltd 2013

Key Note Ltd 2013

In regard to charity trustees, their main responsibilities in relation to

Exempt and Excepted Charities

Key Note Ltd 2013

Charities Act 2006 Review

Key Note Ltd 2013

the proposal to increase the financial threshold for compulsory registration

Key Note Ltd 2013

Key Note Ltd 2013

MARKET DYNAMICS AND SEGMENTATION

Total Industry Value and Growth

Key Note Ltd 2013

Table 2.1: Income of Registered Main Charities in England

Annual Income Bracket

Total Annual Income

Annual Income Bracket

Key Note Ltd 2013

Although the number of charities registered in England and Wales grew by

Table 2.2: Number of Registered Main Charities and Large

Key Note Ltd 2013

Table 2.3: Voluntary Income of UK Charities by Cause

Advancement of health or saving of

Prevention or relief of poverty

General charitable purposes

Overseas aid/famine relief

Accommodation and housing

Armed forces/emergency service

Source: Key Note based on data from Charities Aid Foundation,

Key Note Ltd 2013

Table 2.4: Source of Charitable Income by Type