Charities are set to receive £300 million less in donations this 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.
EveryYouth CEO Nicholas Connolly says: “Charities like EveryYouth – that rely entirely on donations to operate – are facing a perfect storm. Not only do individuals feel less able to give, but companies do too, while demand for funding from trusts and foundations is overwhelming their resources.
“This shortage of funding is made worse by spiralling costs. The combination of inflation and increased taxes on employment has significantly increased costs rapidly. There are no surpluses to plug the gaps and reserves are being decimated.
“Unless something quickly changes millions of people who rely on charities will see the rug pulled from beneath them. In our case thousands of young people could lose the help they need to overcome trauma, build employability and leave homelessness behind.”
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, CAF Head of Impact and Advisory, 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:
