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<p>Public donations are an important source of income for charities. The data regarding trends in donations is complex and can vary depending on the measurements used. Headline figures can also mask changes in patterns of donations, such as who donates and how much they give.</p><p>Government encourages charitable donations via Gift Aid, through which charities can claim an additional 25 pence on every £1 donated. For the tax year ending April 2022, this amounted to £1.3 billion which went directly to charities. Additionally, my department collaborated with charity sector stakeholders last year to encourage the public to consider donating to small charities during Small Charity Week.</p><p>The Charities Aid Foundation’s UK Giving Report 2023 states the public donated an estimated £12.7 billion to charities in 2022, up from £10.7 billion in 2021. Their data indicates donors are giving greater amounts, rather than there being an increase in the number of donors. The Community Life Survey 2021/22 shows 66 percent of respondents donated to a charitable cause in the past four weeks. This proportion is higher than 2020/21, but lower than previous years.</p><p>The Government is aware that for some charities, high inflation is eroding the value of donations, at a time when many charities are experiencing rising costs. The Government is committed to supporting the charitable sector, which is why, in the Spring Budget 2023, the Chancellor announced a £100 million funding package for charities and community organisations in England.</p> |