Top charities see cash boost

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The total income of the biggest fund-raising charities grew by three times the rate of gross domestic product, which was 2.8%, and the Consumer Price Index, which was 2.5%, for the same financial year.

Spending by the top 500 also grew - up 8% in 2005/06 compared with 2004/05, the Charity Trends 2007 report by the Charities Aid Foundation showed.

At the same time, the sector employed 1.8% fewer staff and spent 1.9% less on salaries than the previous year.

The biggest source of finance came from donations, grants and gifts-in-kind - collectively known as voluntary income - which made up 38% of the total.

Fees for goods and services accounted for 34% of the total income, while 11% came from fundraising activities, 11% from legacies, 4% from rent and investment and 2% was lottery money.

But smaller charities - those which fall outside of the top 500 - were a third more reliant on voluntary income than the big organisations.

Overseas causes such as poverty alleviation, humanitarian aid, disaster responses and helping children remain the top focus for the public and government donations, making up 27.7% of voluntary giving.

International charities saw a 22% leap in revenues in 2005/06, the report said.

Social care and health remained the most popular causes for grant funding from trusts, receiving £565 million and £539 million respectively in 2005/06.