Charities are set to receive £300 million less in donations over the last festive season, according to new analysis of 2025 giving trends by the Charities Aid Foundation (CAF).
The last two months of the year are typically the peak months for giving. While two out of every five people (40%) are expected to give to charitable causes during this period, the average donation is anticipated to fall from £85 to £78. As a result, the total donated to charity is estimated to drop from £3.2 billion last November and December to £2.9 billion in the same period this year.
Charities supporting children and young people – one of the UK’s most popular cause areas – are expected to be hardest hit by the decline, with projections they may receive over £100 million less this winter, falling from £400 million to under £300 million. Homelessness charities are also facing a substantial decrease in donations, with festive contributions predicted to drop by £40 million to £150 million.
The significant decline in donations comes at a time when many charitable organisations continue to struggle with rising costs and increased demand for their services.
CAF’s UK Charity Insights report found that 44% of charity leaders cited increased costs over the last 12 months as one of their main challenges this year, significantly more than the 30% who reported this in 2023 following the peak of inflation.
With charities unable to pass on cost rises, the research also found the financial strain on the sector is affecting the delivery of services. Over eight in ten (83%) charities reported an increase in demand for the services, with 86% expecting demand to grow over the next 12 months, and only one in ten (11%) reporting that they have been able to smoothly meet the rise in demand.
Ashling Cashmore, Head of Impact and Advisory at the Charities Aid Foundation, said:
“Christmas is the season for giving and many charities rely on this peak in donations to provide essential services during both the festive period and throughout the rest of the year.
“After a challenging year it is understandable that people may need to ease back on their donations this Christmas, but it’s a real concern for charities facing rising demand for their services and increased costs.
“If you can afford to, now really is the time to give generously to causes supporting the most vulnerable in our society but there are also other ways to help, such as through volunteering or donating goods.”
For those able to support charities this Christmas, CAF suggests:
- If you are a UK taxpayer, ensure you’re ticking the Gift Aid box to effectively increase the value of your donation by approximately 25%.
- Speak to people and organisations locally to identify what is most needed, and support a cause that connects with your interests and passions.
- If you’re getting your house sorted to make room for Christmas, consider if there are any quality household items you could donate to your local charity shop.
- When you do a food shop, add some extra items to donate to your local food bank – most supermarkets have a collection point in store for you to easily drop off donations.