Small Charity Week 2025 – How Small Charities Are Having to do More With Less

Until June 28th, we’re proud to mark Small Charity Week 2025, a moment to celebrate the extraordinary impact of small charities across the UK. These organisations are often integral to their communities, offering vital support despite working under immense pressure.

This year’s theme, Financial Resilience and Sustainability, couldn’t be more appropriate. With the Cost of Living and Energy Crisis still affecting households and organisations alike, small charities are being asked to do more with less. Demand is rising, yet resources continue to shrink.

Financial Vulnerability

Small charities have been battling tough conditions since the pandemic. Between 2020-21 and 2021-22, public donations to small charities fell drastically, from making up 54% of their income to just 25%. As a result, 73% have had to seek alternative funding sources.

As seen in the graphic below, operational costs are also climbing steeply.

Rising Demand, Shrinking Capacity

As the economy strains families and communities, demand for charitable services is surging. Over half (56-57%) of charities report rising service demand.

But nearly a quarter (24%) of small charities have already had to cut services, with no room left to reduce further, creating a growing burden on those that remain.

The Path Forward: Investing in Leadership

In times like these, strong leadership isn’t optional – it’s essential. But how do small charities upskill their senior teams when funding is tight?

Apprenticeships are the solution

Through the government’s co-investment scheme, small organisations with a payroll under £3million can access 95% funded training, making professional development both accessible and affordable.

Empowering Charities Through Leadership

As a charity ourselves, we understand these challenges. That’s why we developed our Senior Leadership Programme (SLP), built specifically for the third sector, and rooted in values-led leadership.

With the SLP, you can:

  • Upskill your senior team to master’s level leadership
  • Do it for just 5% of the cost (£700)
  • Lay the foundation for a future MBA, in partnership with select universities

Prof. Chris Jones delivering a session to students participating in the first cohort of the SLP.

Find Out More

Let’s equip our sector’s leaders with the tools they need to face the future.

Visit: www.nishkamapprenticeships.org/leadership-hub

Or call: 0121-515-4229

Read about the successful start of our first cohort:

References

[1] Public giving to small charities fell from 54% of income to 25% (2020–2022).

https://www.lloydsbankfoundation.org.uk/news-and-reports/publications/small-charities-responding-to-crisis

[2] 78% of charities reported rising costs in the past year; 17% experienced increases of 30% or more.

https://www.cafonline.org/about-us/publications/2023-publications/uk-giving-2023

[3] 62% of charities experienced a drop in income.

https://www.cafonline.org/about-us/publications/2023-publications/uk-giving-2023

[4] 56–57% of charities have seen demand for services increase during the cost-of-living crisis.

https://www.cafonline.org/about-us/publications/2023-publications/uk-giving-2023

https://locality.org.uk/

[5] 24% had already reduced services and had no further room to scale back.

https://www.dsc.org.uk/research