Value of donations plummets £5bn as figures suggest giving worth £23bn to UK economy

Donors are giving significantly less than they were during the Covid pandemic, although volunteering has recovered well, figures suggest.

The research estimates that the combined value of giving, through volunteering and donations, to the UK economy is £23bn, representing nearly 1% of total GDP.

The estimated value of volunteering in 2022 was £18.7bn, up £7.7bn on figures during the pandemic in 2020 and the same level as before the health crisis.

However, donations added only £4.3bn to the economy in 2022, a reduction of £5bn on figures from 2021 when the impact of the health crisis began to ease and before the worst of the cost-of-living crisis.

The findings have emerged in research carried out by the Centre of Economics and Business Research (Cebr) and commissioned by financial services firm Benefact Group.

The figures suggests that while the value of donating has fallen, the public’s attitude to supporting charities is still strong, even though they cannot afford to give as much amid double digit inflation.

The research found that 76% of the public donated in 2022, up from 64% pre pandemic in 2018/19.

But the average amount given by those donating over a year has more than halved since, falling from £261 in 2018/19 to £101 in 2022.

Elsewhere the proportion of people volunteering is up, from 17.9% in 2018/19 to 29.7% in 2022. However, average volunteering hours have halved since 2020, from 12 hours over a four-week period to six hours in 2022.

“It is encouraging to see that the share of people giving to charity or volunteering in their free time has not only fully recovered but even exceeded pre-pandemic levels,” said Kay Neufeld, Cebr’s head of forecasting and thought leadership.

“By quantifying this combined value of giving, we’re pleased to be able to demonstrate the crucial importance of this sector to the UK economy.”

The wide value of volunteering carried out by older people, including caring duties, could be far higher, previous research by Cebr released last year suggests.

Volunteering by older people worth £48bn a year, research suggests - Charity Times

When combining formal volunteering among over 65s for charities, as well as informal volunteering, such as caring duties for families and friends, the value of their time could be worth £48bn a year.