The Small Charity Index demonstrates the challenges small charities face in securing funding to deliver the vital services they provide for their local communities. In the years post the 2007/08 financial crisis, funds to support local services, especially from Local Authorities (a statutory source) decreased due to the austerity measures they put in place. Small charities, who deliver local services specifically in the areas of health and social welfare, therefore continue to face a challenging commissioning environment.
By tracking the experiences in income generation across statutory, voluntary and earned income sources, this report shows how small charities continue to be affected by economic uncertainty, placing pressure on securing funds to remain sustainable in the long term. New fundraising opportunities have emerged, such as mission-based enterprises and social investment. The Small Charity Index shows that the fastest growing area of income generation is earned, which is an opportunity for small charity and community group leaders to explore to build financial sustainability.
As part of the Department for Digital, Culture, Media & Sport’s (DCMS) heavily subsidised Small Charity Training Programme, training events are taking place across the country, which includes training courses on Developing Your Earned Income – Enterprise Your Mission.
The programme is open to small charities and community groups with an annual income of up to £1 million, which have a local focus within England. For more information on the subsidised support, visit our training page.