Overview

Earned income accounts for over half of the sector’s total income

Types of income

  • Earned income totalled £24.8bn in 2015/16, accounting for over half (52%) of the sector’s total income in 2015/16.
  • Voluntary income amounted to £19.6bn and investment income to £3.4bn.

Sources of income

  • The sector receives 79% of its funding from individuals or government.
  • Income from individuals remains the sector’s main income source, providing £22.3bn (46% of total income) via donations, legacies and purchases.
  • Contracts and grants from government bodies, worth £15.3bn, generate almost a third of the sector’s income (32%).
Voluntary sector income by source of income, 2015/16 (%)
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Over time

Income from individuals continues to drive the increase in the sector’s income

Types of income

  • Voluntary income has increased steadily since 2012/13. In 2015/16, it increased from £17.7bn to £19.6bn, exceeding its previous peak value of £18.2bn in 2007/08.
  • The slight decrease in earned income, as well as the sharper rise in voluntary income reflect a change in methodology. There was an increased effort to identify grants, even when they were reported in the account as earned income. Without this change of methodology, both voluntary and earned income would have grown, although very slightly.
Voluntary sector income type, 2000/01 to 2015/16 (£bn, 2015/16 prices)
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Sources of income

  • Income from individuals continued to grow and increased by £1.5bn between 2014/15 and 2015/16. Since 2013/14, individuals are driving growth in the sector’s income.
  • Income from government funding fell by around £0.2bn, after having increased over the previous two years.
  • Income from the National Lottery increased from £0.5bn to £0.7bn, a level higher than any other year since 2006/07.
  • Income from the voluntary sector (mainly from foundations and trusts) remained at £4.1bn.
  • Income from investment and income from the private sector showed little change.
Voluntary sector income sources, 2000/01 to 2015/16 (£bn, 2015/16 prices)
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By size

Income from individuals provides the largest proportion of income for every size band

Types of income

  • Earned income accounts for over half of the total income of large (56%) and major (59%) organisations, and less than half of the total income of medium (46%), micro/small (43%) and super-major (40%) organisations.
  • Super-major organisations are the most dependent on voluntary income (53%), followed by medium (43%) and micro/small organisations (41%).
  • 15% of the income of small and micro charities comes from investments. Large charities derive only 4% of their income from investment, they are the ones who rely the least on this income stream.

Sources of income

  • Individuals are the main source of income for every income band.
  • Micro and small organisations continue to have the largest proportion of income from individuals (58%) and the smallest proportion of income from government (15%).
  • Major organisations are the largest recipients of government funding (£6.1bn), which amounts to two-fifths (40%) of their total income.
  • Income from the voluntary sector makes up between 6% and 14% of total income of the different income bands, whilst National Lottery income represents between 1% and 2%. For both sources of income, there is no clear pattern in how these percentages vary by size of organisation.
  • There is little variation for income from the private sector as a proportion of total income across income all size bands, which varies between 4% and 5%.
Income sources by size of organisation, 2015/16 (% of income)
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By subsector

Income from individuals provides the largest proportion of income for every size band

Types of income

  • No subsector receives more than half their income from government.
  • Voluntary income accounts for more than half of the total income only for organisations operating in the international subsector (81% of their total income).

Sources of income

  • Each subsector has a different funding mix. Income from individuals accounts for over half of the total income of 11 subsectors out of 18. Organisations working in the environment subsector receive the highest proportion of their income from individuals (72%).
  • No subsector receives more than half their income from government, but 5 subsectors have more than 40% of their income from government, namely employment and training (48%), social services (46%), playgroups and nurseries (44%), law and advocacy (43%), and umbrella organisations (41%).
  • Income from the voluntary sector is particularly high for organisations in the international subsector (28%) and investment income is particularly high for grantmaking organisations (33%).
Income sources by subsector, 2015/16 (% of income)
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Get the data

Get the income data here.

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UK Civil Society Almanac 2018 / The Voluntary Sector /Income

Published: 09-05-2018 / Tagged:

https://data.ncvo.org.uk/a/almanac18/income-sources-2015-16/