Smaller charities face a particular challenge in recruiting staff compared to their larger counterparts, according to research by a sector membership body.
The Association of Charitable Organisations (ACO), which represents benevolent charities, found that the average chief executive pay at charities with annual incomes of less than £1m accounted for 15% of their income and averaged £77,000.
In contrast, CEO pay at charities with annual incomes of more than £5m that responded represented 1.6% of their income and averaged £120,000.
“This reflects the very different financial realities smaller organisations operate within, and the limited headroom they have to invest across the rest of their employment offer,” the report reads.
Drawing on responses from 41 ACO member organisations, the second edition of the salary benchmarking and working patterns report 2026 was published today in partnership with recruiter Merrifield Consultants.
Overall, the report finds that CEO salaries ranged between £54,000 and £154,000 and averaged £98,000.
‘Competition for talented staff hasn’t eased’
The report describes mental health and wellbeing support as “strikingly low among smaller organisations” (under two in 10) versus seven in 10 for both mid and large organisations.
One in five small charities that responded provide enhanced parental leave, compared with over one in three larger charities.
Health insurance was less common at the largest organisations (four in 10) than at the mid-sized ones (half), which the report says “may reflect different approaches to employee support, with larger charities potentially relying more heavily on employee assistance programmes”.
The report says volunteering leave “seemed generally underutilised, with under a quarter of respondents offering this to staff.
Over seven in 10 respondents said they provide professional development training, including all larger charities and most smaller organisations, “reflecting its importance for staff retention”.
ACO’s CEO Donal Watkin said: “Charities providing financial and wellbeing support to individuals are working in an increasingly complex environment.
“Demand for support continues to grow, costs are rising, and the competition for talented staff hasn’t eased.
“What this research makes clear is that smaller organisations face a particular challenge.
“They’re committed to their people, that comes through strongly in the data, but they often have fewer resources to build the kind of employment offer that allows them to compete on equal terms.”
Rebrand
The ACO has also revealed a new visual identity – “we’re more, together” – to reflect that it is a “warm, energetic and deeply connected organisation”.
“For a long time, our brand didn’t reflect that,” it said.
“Our previous identity had served us well, but it had become outdated and wasn’t fit for purpose in a digital world. It felt too corporate, too rigid, and didn’t truly capture the nature of our members’ work or the spirit of what we do.”
The ACO worked with agency Red Stone to design its new identity, which carried out the project pro bono through the Media Trust Volunteer Platform.
The charity said it chose to keep its orange colour, which was identified throughout the process as its “strongest and most ownable asset”.
“Around it, we’ve built something bolder, warmer and more distinctive,” it said.
“A new logo, a new typeface, a fuller colour palette, graphic assets and a comprehensive brand toolkit that will help us communicate more consistently and confidently across everything we do.”
