The Charities Aid Foundation (CAF) distributed a record £1.43bn to charities last year, it has reported, while its income also rose.
CAF’s distribution in 2025-26 marked an increase from £1.2bn the year prior, its previous highest-ever total.
Donations received by CAF from private and corporate partners totalled £1.65bn last financial year, a rise from £1.34bn in 2024-25.
“The continuing generosity of donors using our services in the UK and US enabled this level of support,” CAF stated in its annual report.
Legacy income for the group, which contains its international subsidiaries and CAF Bank, by contrast, fell over that period to £56.4m from £65.5m.
Of this, £55.8m was for the charity, a decline from the amount accrued the previous year of £58.1m.
Meanwhile, investment income was £53.6m, a drop from £54.5m in 2024-25.
CAF stated that despite economic pressures, lending by its subsidiary CAF Bank continued to grow in 2025-26.
Loans and advances increased to £306m as of 30 April from £283m on the same date in 2025.
Profits from CAF Bank, however, fell to £4.3m in 2025-26 from £11.1m the year before as administrative expenses increased by over a fifth to £40.1m.
The charity bank experienced service disruptions after the launch of its updated online system in June last year and again this summer following an “attempted fraud”.
Gains despite ‘challenging operating environment’
Caroline Siarkiewicz, CAF interim chief executive, said: “The role that CAF plays […] is increasingly important as charities face a more challenging operating environment.
“We see first-hand the value that philanthropic funding can achieve and the impact that more strategic philanthropy can have,” Siarkiewicz added.
The interim chief pointed to a decline in public giving, a drop in the amount UK businesses have been giving and an increasing reliance on philanthropy as issues affecting charities.
Earlier this year, CAF estimated that donations from British people to charities fell by 10% in 2025 to £14bn.
Its UK Giving Report said that about 31 million or 55% of adults donated or sponsored someone last year, down from around 37 million people (69) in 2016.
In its report, CAF urged the government to help drive a “renewed culture of giving in the UK” to reverse the decline.
