New data released from NCVO’s UK Civil Society Almanac 2013 shows the powerful effect that high inflation had on charity sector finances in recent years. NCVO's UK Civil Society Almanac 2013 examines charities' accounts for financial year 2010/11.
In cash terms, the charity sector generated an extra £2bn in income in 2010/11 compared to the previous year, with a total income of £38.3bn. But rising costs – inflation was at 5% – wiped out the effect of this increase and meant that the sector’s real-terms income was almost identical to its level in 2009/10.
The Almanac registered its biggest fall in the sector’s real-terms spending since it began recording in 1996. Spending stood at £36.8bn in 2010/11, a real-terms fall in spending by the sector of £800m compared to the previous year’s inflation-adjusted figure of £37.6bn.
The data covers a period when the UK was no longer in recession, and before government plans to reduce public spending had come into effect.
Other data in the Almanac shows:
• The proportion of income from government grants and contracts remained steady after a decade in which contract income had consistently increased and grant income decreased
• Individuals remained the sector’s dominant source of income, with income from individuals increasing by £945m. This trend is consistent with the UK Giving findings for that year
• Sector assets regained value that they had lost during the recession, with the sector’s total assets topping £100bn for the first time. Income from investments remained low, however, and reserve levels did not recover to the same extent as assets overall
For further information, visit: www.ncvo-vol.org.uk/news/civil-society/almanac-data-shows-charities-subdued-financial-climate