Donations over the Christmas period are expected to be £300m less than last year, with children and young people’s charities set to be hardest hit by “substantial” decreases.
The Charities Aid Foundation (CAF), analysing YouGov survey data of more than 1,000 UK adults, has predicted festive donations this year will fall to £2.9bn from £3.2bn in 2024.
This amounts to £300m less going to charities over November and December, usually the peak giving months of the year.
Donations to children and young people’s charities are predicted to drop from £400m in the 2024 festive period to under £300m this year while gifts to homelessness organisations are forecast to fall by £40m to £150m.
CAF predicts that two out of five people are expected to give to charitable causes over Christmas but the average donation is expected to fall from £85 to £78 in 2025.
Earlier this year, CAF found that fewer people were donating generally – its UK Giving Report revealed that 55% of people said they gave to charity in the 12 months prior, down from 58% in 2023 and 65% in 2019.
Higher costs and demand
In its latest research, CAF reported that rising costs and increased demand for services had presented challenges for charities this year.
It found that 44% of charity leaders cited increased costs over the last 12 months as a main challenge, a rise from 30% in 2023 at the peak of inflation.
Eight in 10 charities also reported an increase in demand for services, and just 11% said they have been able to meet it.
Ashling Cashmore, CAF head of impact and advisory, said: “It’s a real concern for charities facing rising demand for their services and increased costs.
“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.”
