The third Third Sector Trends in England and Wales 2025 report highlights a familiar challenge. While the voluntary sector as a whole generates significant income, funding remains concentrated among a small number of large organisations. Micro charities make up more than a third of the sector but receive less than 1% of total income.

These are the organisations we exist to support. The majority of our funding goes to small, grassroots charities. Groups rooted in their communities, with the knowledge and relationships to understand local need.

The report reinforces how important grant funding is for these organisations. Many cannot rely on trading income, large public sector contracts or national profile. Instead, they depend on flexible funding to keep delivering essential services. By working with our donors, we help direct vital support to these often-unsung groups so they can continue their work.

There are positive signs. Relationships between funders and charities have improved since the pandemic, with more organisations accessing core and longer-term funding. But the overall picture remains uneven. Smaller charities, particularly those working in disadvantaged areas, are more likely to be under pressure, often using reserves just to cover basic costs.

In Lancashire and Merseyside, these are often the same communities facing the greatest challenges. Grassroots organisations are uniquely placed to meet those needs, reaching people others may miss.