Voluntary organisations earned £11.1 billion in contracts and received £2.6 billion in grants in 2011/12. More than 80% of the government funding received by charities is now in the form of contracts for delivering services rather than grants to support their work, compared to 49% in 2000/01. The value of grants fell by 14.5% in 2011/12, while the value of contracts fell by 7.4%, so the shift from grants to contracts observed over the last decade continued in a time of austerity.
Grant income has fallen in real terms, and this has been most pronounced in grants from local government. These grants decreased in real terms by 53% from just under £1 billion in 2008/09 to £465 million in 2011/12. Grant income from central government over the same period fell by only 4%, to £1.7billion. Grants from European and international government sources rose by 45% over this period.