Small charities are the quiet powerhouses of our communities—making up over 80% of the UK charity sector, yet collectively receiving just 4% of its total income (Small Charities Week, 2025). Operating on less than £100,000 a year, these organisations are often the front line of crisis response and long-term care. Whether tackling food insecurity, supporting mental health, strengthening community bonds, or leading grassroots environmental work, small charities are embedded in local life and trusted by those they serve.

Nearly two-thirds of small charities work exclusively at the local level, responding quickly and compassionately to community-specific needs (Small Charities Week, 2025). Many are led by people from the communities they support—ensuring culturally relevant services, long-standing relationships, and a deep understanding of the challenges faced.

Yet despite their reach and relevance, small charities face stark financial inequality. Their resilience is extraordinary—but also fragile. Many have little in reserve, limited fundraising capacity, and operate with minimal infrastructure. And while the generosity of volunteers bolsters their delivery, core support—such as digital tools, governance, and fundraising training—is often overlooked in favour of short-term project funding.

The latest CAF Giving Report (2025) shows that only half of UK adults donated to charity in the past year, down from 58% in 2019—meaning four million fewer donors. While average donation amounts are rising, most of this support still flows to national or international causes. Only a third of donors gave anything to a local community organisation.

This matters. Local organisations are often best placed to make a difference—and they need better access to the funding that fuels their work.

At the Community Foundation for Lancashire and Merseyside, we exist to change that. Specialising in local giving, we connect donors with the most pressing needs in their communities—helping funds reach the groups that are overlooked by traditional funding models. In the past year alone, 44% of our grants went to charities with an income under £100,000, and 93% to those under £1 million.

By supporting small charities, we support our communities’ most agile and effective responders. This Small Charities Week, we invite funders, donors and partners to shift focus: give local, and make your impact where it matters most.