Annual return data: January to December 2022
Published 4 April 2024
Applies to England and Wales
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Annual Return 2022
The figures below are collated from information sent to us by charities for financial years ending between January 2022 and December 2022 (“Annual Return 2022”).
Some 91.6% of the total number of charities the Charity Register filed an annual return in 2022.
Income and expenditure
Total gross income for all charities that submitted an annual return increased by 8.48% in comparison to 2021, with total gross expenditure mirroring this. Annual Return 2022 saw the highest increase in both income and expenditure since 2019, as the sector overall recovered from the COVID-19 pandemic whilst responding to an increase in demand for services.
The total number of charities with an income above £500,000 grew to approximately 12,000. Charities in this income band saw the most growth in terms of total gross income, with data indicating this was largely driven by a 38% increase in fundraising income, influenced by a relaxation of COVID restrictions.
Most charities (62.6%) that submit an annual return have an income of less than £100,000, however. Collectively these charities saw an increase of 0.84% in income whilst also seeing expenditure rise by 8.95%, indicating a downturn in operational sustainability.
Income
| Income band | Total sector gross income |
|---|---|
| Above 5 million | £67,633,010,424 |
| Between 1 million and 5 million | £11,895,934,130 |
| Between £500,000 and 1 million | £3,459,139,943 |
| Between £250,000 and £500,000 | £2,745,895,569 |
| Between £100,00 and £250,000 | £2,574,132,927 |
| Between £25,000 and £100,000 | £1,562,523,851 |
| Between £10,000 to £25,000 | £407,314,334 |
| Below £10,000 | £21,171,917 |
| All registered charities | £90,299,123,095 (£90.3 billion) |
Expenditure
| Income band | Total sector gross expenditure |
|---|---|
| Over 5 million | £64,944,215,772 |
| Between 1 million and 5 million | £11,511,641,160 |
| Between £500,000 and 1 million | £3,400,770,173 |
| Between £250,000 and £500,000 | £2,794,948,571 |
| Between £100,00 and £250,000 | £2,578,523,100 |
| Between £25,000 and £100,000 | £1,651,881,965 |
| Between £10,000 to £25,000 | £461,445,573 |
| Under £10,000 | £38,386,691 |
| All registered charities | £ 87,381,813,005 (£87.4 billion) |
Income from government contracts and grants
Charities may win government contracts to provide services in keeping with their charitable purposes or be awarded government grants.
Some charities are paid by the government to deliver services on its behalf, for example social care. For financial years ending in 2022, this income increased. The number of charities self-reporting contracts has also increased.
| Government contracts | Total |
|---|---|
| Total income from Government contracts | £9.3 billion |
| Number of charities that said they had Government contracts | 6,490 |
Meanwhile, some charities apply for and are awarded government grants that help them to further their charitable aims. For financial years ending in 2022, income from government grants reduced – with the overall value falling from £8.2bn in 2021 to £7.0bn in 2022. The number of charities reporting these grants reduced by 25% from 35,474 in Annual Return 2021 to 27,001 in 2022. The largest percentage decreases in this source of income were felt by smaller income charities.
| Government grants | Total |
|---|---|
| Total income from Government grants | £7.0 billion |
| Number of charities that said they received government grants | 27,001 |
Reserves
Reserves are a charity’s funds that are freely available for it to spend on its charitable purposes, not tied up in fixed assets or restricted funds, and are held to help it operate effectively, including to meet unexpected costs.
Charities with an income of £500,000 or more are asked about their level of reserves in the Annual Return. This represents 7% of registered charities. Proxy reserves were broadly level with 2021 figures, at a total of £75 billion for the sector versus £73 billion in 2021.
| Level of reserves |
|---|
| £75.57 billion |
Volunteers
The total number of volunteers reported increased in 2022 from 2021 but with some significant variation across the sector. Recreation, environment, conservation and heritage charities reported larger increases in volunteer figures, while religious charities, those providing front line services and those providing support to armed forces personnel saw a decrease in reported volunteer figures.
| Number of volunteers |
|---|
| 6,186,758 |