Britain’s charities are facing growing pressure as new figures reveal around six million fewer people are donating than a decade ago – a worrying trend that community leaders say is already being felt by the grassroots organisations many families rely on most.
According to the Charities Aid Foundation (CAF), just 55% of people in the UK donated to charity in 2025, down from 69% ten years ago.
Public donations also fell by £1.4 billion last year, dropping from £15.4bn to £14bn, with the average gift falling from £72 to £65. Nearly half of those who did not give said they simply could not afford to.
For many in Britain’s diverse communities, where local charities, mosques, gurdwaras, churches, foodbanks and neighbourhood support groups often step in long before statutory services, the figures paint a troubling picture.
From warm spaces and emergency food parcels to domestic abuse support, youth mentoring, refugee help and mental health services, grassroots organisations are increasingly being asked to do more with less.
While large national charities continue to feel the squeeze, it is often smaller local groups – many powered by volunteers and supported by community fundraising – that are most vulnerable when public giving drops.
The decline comes at a time when need remains high. Families across the UK are still grappling with the long tail of the cost of living crisis, while charities report rising demand linked to poverty, isolation, housing stress and poor mental health.
Community leaders say the impact is not theoretical – it is being felt in shorter opening hours, reduced outreach, fewer projects, and harder choices about who can be helped.
CAF has warned that charitable giving is no longer the deeply embedded cultural norm it once was. While economic pressure is clearly a major factor, the report also suggests a wider shift in public habits and priorities, with fewer people giving regularly and some wealthier households saying they are simply less engaged with charitable causes than in previous years.
There are signs that giving is becoming more local and more immediate. Foodbanks, for example, are now attracting a bigger share of donations than arts, culture, science or education. But even these frontline services are finding it harder to maintain consistent support as donor fatigue grows and household budgets tighten.
For British South Asian communities – where giving is often deeply rooted in faith, family and a strong sense of social responsibility – the findings are likely to strike a particular chord. Whether through zakat, sadaqah, seva, church collections or informal community appeals, generosity has long been one of the quiet forces holding neighbourhoods together.
But campaigners say the message is clear: if fewer people are able to give, the burden on those already carrying communities through hardship becomes even heavier.
