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West England Bylines
Home Business Economy

Challenges deepening across the charity sector

Rising demand, falling income, fewer volunteers, and growing regulation are pushing charities – especially small ones – towards crisis

Peter Curbishley by Peter Curbishley
24 November 2025
in Economy, Opinion, Politics
Reading Time: 4 mins read
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Volunteers raising money for breast cancer research  image by Bryan Ledgard. CC BY 2.0

Volunteers raising money for breast cancer research image by Bryan Ledgard. CC BY 2.0

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There seems little doubt that the charity and not-for-profit sector is under threat. The demands for their help are increasing, especially in these times of austerity. Funding is harder than ever to secure, whether from local authorities or from other sources. Many charities report submitting ever more funding applications with diminishing chances of success. The move to a cashless economy has rendered street collections unproductive. There has also been a significant fall in those wishing to volunteer, down by 1.5 million people since 2023.

Since there are some 170,000 charities in England and Wales, with tens of thousands more voluntary organisations, you would think that there would be government concern about these problems. I have looked at the Department for Culture, Media and Sport’s statements and announcements in Parliament over the past few months, and there is little sign of any such concern. Most activity is focused on sport, tourism and youth – all important issues – but there is precious little about the not-for-profit sector. The few statements that do exist amount to little more than bromides.

Government silence as pressures mount

You might, on the other hand, think that the Charity Commission would be a source of support and encouragement. In fact, they are primarily a regulatory authority. Indeed, three of their six objectives concern registration, enforcement and ensuring that charities operate legally. This is a necessary and important function, ensuring that funds given are used properly and for the purposes of the charity. But there is little sign of them promoting the interests of the sector.

A problem is that the vast majority of charities are small. Collectively, they do a massive amount of work. Individually, they carry little weight and are easily ignored. They cannot afford the expensive TV adverts that the major charities run. This means their voices are fragmented.

Another irritant has been the ever-increasing number of controls placed on the sector. Governance is now a major issue. Health and safety is another, together with safeguarding. Again, all important issues, but they represent a significant rise in the amount of time spent on meeting requirements, writing policies and informing or training staff. There is a front-end cost to this when recruiting a new volunteer.

There was a politician who used to talk about Labour’s ‘double whammy’. For the voluntary sector, it’s a ‘quadruple whammy’: higher demand, lower income (which is harder to achieve), fewer volunteers, and increasing levels of regulation and control. Oh, and inflation, of course. 

No charity is immune to the strain

Even the major charities, who can spend millions on promotion and TV campaigns, are suffering. Macmillan, the cancer charity, for example, is cutting staff by a quarter to meet a funding shortfall. Samaritans is considering reducing the number of its offices.

The government would not be able to carry through some of the cuts to services if there were not this wall of volunteer support to pick up the pieces. It is this sector which steps in when the government backs away. There is therefore a looming crisis that it is not at all clear the government recognises.

What can be done? One thing is for small charity trustees and volunteers to realise that although their charity or not-for-profit may be small and relatively insignificant in the scheme of things, they are part of a massive movement involving hundreds of thousands of volunteers providing crucial help to millions of people. You are important, folks! Very important. So, when next you meet an MP and listen to their fine words, you need to convey the message that we may be tiny, but there are thousands and thousands like us, and altogether, we provide a vital service to the community. You need to explain the challenges we face and to say that a little more recognition of that would not come amiss from DCMS ministers.


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Peter Curbishley

Peter Curbishley

Peter was born in Kent and is or has been, a trustee of several charities and not for profit organisations gaining a wide experience of the sector. He was a small business adviser for many years and a tutor with the Open University’s small business course. He worked on a major regeneration project in the south of England. He has a Master’s Degree and post graduate diplomas in management, town planning and marketing and is a member of the Chartered Institute of Marketing. He writes a regular blog on small charities issues on Substack. Peter helped set up the Salisbury Democracy Alliance which runs a monthly Democracy Café. He contributes to the Salisbury Amnesty group’s website.

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