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Annual Return 2022聽

The figures below are collated from information sent to us by charities for financial years ending between January 2022 and December 2022 (鈥淎nnual Return 2022鈥�).聽

Some 91.6% of the total number of charities the Charity Register filed an annual return in 2022.聽聽

Income and expenditure聽聽

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. 聽

The total number of charities with an income above 拢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 拢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.聽

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Income band	Total sector gross income
Above 5 million	拢67,633,010,424
Between 1 million and 5 million	拢11,895,934,130
Between 拢500,000 and 1 million	拢3,459,139,943
Between 拢250,000 and 拢500,000	拢2,745,895,569
Between 拢100,00 and 拢250,000	拢2,574,132,927
Between 拢25,000 and 拢100,000	拢1,562,523,851
Between 拢10,000 to 拢25,000	拢407,314,334
Below 拢10,000	拢21,171,917
All registered charities	拢90,299,123,095 (拢90.3 billion)

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Income band	Total sector gross expenditure
Over 5 million	拢64,944,215,772
Between 1 million and 5 million	拢11,511,641,160
Between 拢500,000 and 1 million	拢3,400,770,173
Between 拢250,000 and 拢500,000	拢2,794,948,571
Between 拢100,00 and 拢250,000	拢2,578,523,100
Between 拢25,000 and 拢100,000	拢1,651,881,965
Between 拢10,000 to 拢25,000	拢461,445,573
Under 拢10,000	拢38,386,691
All registered charities	拢 87,381,813,005 (拢87.4 billion)

Income from government contracts and grants聽

Charities may win government contracts to provide services in keeping with their charitable purposes or be awarded government grants.聽聽

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.聽

Government contracts	Total
Total income from Government contracts	拢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 鈥� with the overall value falling from 拢8.2bn in 2021 to 拢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.聽

Government grants	Total
Total income from Government grants	拢7.0 billion
Number of charities that said they received government grants	27,001

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Reserves are a charity鈥檚 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. 聽

Charities with an income of 拢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 拢75 billion for the sector versus 拢73 billion in 2021.聽聽聽

Level of reserves
拢75.57 billion

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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.聽

Number of volunteers
6,186,758