50 years in the charity sector: Then and now

FundsOnline - 50 years in the charity sector: Then and now

Senior Researcher, Jessica Threlfall reflects on 50 years of DSC supporting the voluntary sector by looking at how things have changed and what the future holds.

It’s 1975. Margaret Thatcher just became the first female leader of a major party, Jaws is about to be released in cinemas, Microsoft opened its doors, and a loaf of bread cost just 16p. Meanwhile, in a kitchen in London, Michael Norton, DSC’s founder, sat down to research and write what would become the first in a series of directories, brimming with information and contacts for people trying to make the world a better place.

The UK was very different 50 years ago from the country we live in today, but what do we know about the charity sector back then? The short answer is, very little.

Recently, DSC’s Director of Policy, Jay Kennedy, reflected on his experience working in the charity sector in the early 2000s, when in-person trips to the Charity Commission were the only way for DSC’s researchers to compile information for our well-loved funding guides. So, it’s no surprise that finding detailed information about the sector from 25 years earlier is a challenge. Computers did not become commonplace in the UK until the 1980s, so in 1975, data collection was slow and manual. Postal surveys, typewritten accounts and cabinets full of paper records were the norm. However, thanks to the internet, we can find some fragments of data that offer a small glimpse into what the sector was like 50 years ago, and how it compares to today.

Size and Scale

One 1979 study, “Charitable Activity in England and Wales” by Mark Austin and John Posnett at the University of York, tried to fill what it called a “deficiency” in available data on the charity sector by examining a sample of 393 registered charities in England and Wales from 1975. While findings on things like income sources and distribution relate specifically to this sample (which represented 1% of the charities at the time), the authors also used it to make broader estimates on the sector as a whole. Based on this, the authors estimated that there were around 120,000 registered charities in England and Wales, though other sources, such as Find that Charity, put this figure around 96,000. Today, that number has grown to around 170,000, an increase of roughly 40% over the past five decades.

Income and Inequality

Back in 1975, the total income of all registered charities in England and Wales was estimated to be around £3.6 billion, with assets of at least £8.5 billion. Fast forward half a century, and total income has grown dramatically, with the Charity Commission reporting that charities in 2023/24 had a combined total income of £96 billion.

One thing that has remained consistent is that income distribution across the sector is highly uneven. The 1979 report estimates that nearly half of the sampled charities (45%) in 1975 had an annual income of less than £100, while a 1978 parliamentary debate discussing the Wolfenden report noted that in 1970, only 3% of registered charities had an income over £10,000. Similarly, today, almost half of all charities are considered micro-organisations, with an income below £10,000, and around 80% have an income under £1 million per year (NCVO, 2024). So, while the wealth of the sector has increased, it is still dominated by a small number of large charities.

Government Funding and Public Donations

Though the scale of charitable income has grown, many of the same patterns and inequalities remain. Data from the 1979 study showed that only around 8% of the sampled charities received direct government grants, with an average grant of £27,000. Most of these grants went to charities focused on education, health and poverty relief, with education alone accounting for more than half, mostly to support independent schools. Government funding has increased to 26% of the sector’s income today, yet much like in 1975, there is still an imbalance, as small charities only receive 4% of government funding (NCVO, 2024), despite making up most of the sector.

Around 60% of the sample relied on other sources of income, such as rent or investment, while donations from individuals or companies were the largest source of income for just two areas, health and older people. In fact, 71% of all donations recorded in the sample were given to health charities, even though they accounted for only a quarter of the charities at the time. The average household donation was just over £2 per week. Today, public donations continue to play a crucial role, now making up nearly half (NCVO, 2024) of the sector’s income. According to the CAF 2025 UK Giving Report, the public donated an average of £72 in the four weeks covered by the survey.

New Approaches to Giving

Beyond income, 1975 also saw the launch of the first community foundation, the Thamesdown Community Trust in Swindon. Created to bring businesses and their resources together to support local voluntary groups, it was the beginning of a new approach to giving. This paved the way for the Community Foundation network, which officially launched in 2013. Today, the network includes 47 accredited foundations that give over £170 million each year to individuals and groups across the UK.

Over the past fifty years, the development of technology has transformed the sector, not only in the way information is recorded, but also in how easy it is for charities to reach their beneficiaries through websites and social media. Thanks to the online Charity Commission register and digitised accounts, it’s much easier to keep track of who is doing and giving what.

Still Making a Difference

The data may be patchy, but it shows that small charities were, and still are, the heart of the sector. Since 1975, the sector has grown significantly in size and wealth, yet its mission remains just as important. Charities continue to support communities, address unmet needs, and do vital work to help those in need. Here at DSC, we are proud to have supported these organisations every step of the way.

For help finding funding for your organisation, why not check out Funds Online, which has information on over 8,000 funders that together give a total of £8 billion. Find out more here.

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