A report launched today by Bond, a UK network made up of over 400 NGOs, has found that overall income for 305 of its members grew by 59% in ten years and stood at £3.8bn as of April 2016, compared to the wider UK domestic charity sector, which grew by 10% over the same period. The largest income stream to the humanitarian and development sector came from individual giving (31%). Funding to international development organisations now represents a twelfth of entire charity sector funding in the UK, the largest being social services (£10.6bn), culture and recreation (£5.8bn) and health (£5.4bn).
Report author, Graham MacKay, chief operating officer of Bond, the UK’s network of International Development NGOs, said:
“This report shows that the critical work development and humanitarian organisations do – from supporting families out of poverty to responding to the consequences of climate change and humanitarian crises – has seen incredible support from the UK public, with much of the funding coming from people’s pockets Safeguarding, Brexit and GDPR post-dated this piece of research so whether this picture is still accurate is yet to be seen, but what this report reminds us is that the altruistic missions of charities, their moral values and principled aims must be at the heart of any fundraising strategies because these are the things that have led to a decade of public support – and public support and trust mustn’t be taken for granted.”
Murtaza Jessa, haysmacintyre chartered accountants and tax advisers, head of charities said:
“The overall picture of INGO funding over the last ten years appears at first sight to be very positive. However, it is clear that there are winners and losers and there is some striking polarisation, with the larger organisations attracting the lion’s share of government funds, individual giving and voluntary sector income. This report is a useful reference for INGOs to plan funding strategies and think afresh about funding. It is also a valuable tool to help organisations consider their mission and the sustainability of their underlying business models. The lessons for organisations are clear: they must remain nimble and not take any funding for granted.”
The main findings from the report include:
- Income to the development and humanitarian sector has grown by 59% with individual giving accounting for 31% of charity income – the majority of growth in terms of funding occurred within organisations earning over £20m
- Government income (both grants and contracts) are amongst the strongest growing areas of income and now represents 33% of total funding, almost exactly the same level at which the government funds the UK domestic charity sector (32%).
- Earned charitable income and corporate sector income can be a good route to funding diversification especially if the business model or partnership (with corporate sector) is focussed on the INGO’s specialism.
Notes to Editor
- Read the report Financial trends for UK-based INGOs: An analysis of Bond members’ income between 2006 and 2016
- Bond is the UK network for organisations working in international development. Bond unites and supports a diverse network of over 400 civil society organisations and allies to help eradicate global poverty, inequality and injustice.
- haysmacintyre, a leading top 25 firm of chartered accountants and tax advisers, has supported Bond’s report on funding trends in the UK international development sector
- For further information please contact Maryam Mohsin, [email protected] or 07555336029