The economic landscape is bleak for many charities right now, but where there is challenge, there’s also opportunity – if charities can diversify their income streams, writes Siân Wicks, CEO, ERIC, The Children’s Bowel and Bladder Charity.
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The funding challenges faced by charities today are well documented and it's affecting organisations of all sizes. From national organisations having to close branches and reduce staffing costs, to smaller charities struggling to pay the bills amid rising energy costs and other expenditure, all of us are experiencing a shift in the landscape as we try our best to help service users in need.

The causes of this have been equally well covered – the cost-of-living crisis, a decline in the proportion of income from government funding, a drop in corporate giving and increased competition for grant funding being just a few. Some sobering statistics include:

· Government funding reduced: it now accounts for 26% of the sector's total income, a decrease from 30% in 2020/21 (NCVO UK Civil Society Almanac 2024).

· Corporate giving is down, with FTSE100 companies donating an estimated £164 million less than before (CAF Corporate Giving Report 2024).

· Individual giving: the proportion of people donating to charity is down to 50% - a record low, but those who do give, are giving more – with an average donation value of £72 (CAF UK Giving 2025).

· Competition for grant funding is increasing. In a recent survey 82% of charity leaders ranked higher competition for trusts and foundations grant as being a major barrier, while 81% said funders changing their priorities to themes that affected their organisation's eligibility was also an issue. Almost half (44%) said funders taking longer to confirm grants was another big challenge. (Gifted Philanthropy Trusts and Foundations Insights survey 2025)

At ERIC, The Children’s Bowel & Bladder Charity, we’ve seen a marked increase in demand for our services. Over the last 5 years, the volume of calls received by our helpline has increased by 215%*. We rely on income from donations from the public, grants, trusts and foundations, and our corporate sponsors, to fund our vital work with families – which we are so thankful for - but increasingly we are having to bridge the gap to maintain what we have.

Opportunities for charities

While this is undoubtedly a time of change and challenge for the sector, it’s heartening to see so many charities who aren’t just surviving but are indeed thriving in difficult circumstances. Being agile as a leader is key. This is a time to think through what needs to be done in the short term while also considering the long term, always focusing on your team, your key strategic priorities, flexing if needed, and focusing where it matters.

It’s important to seize the opportunity to build on what your charity does well and to use the support of your Trustees, who can offer a wonderful breadth of knowledge and support.

At ERIC, we are growing our offering by diversifying our income streams for financial sustainability in the future. As well as the essential income we receive we are diversifying and growing into the following key areas to generate income:

1. Specialist training for all professionals: including webinars for healthcare professionals on children’s bowel and bladder health, eLearning courses for early years practitioners and other education professionals.

2. Retail: online shop selling specialist online products for families.

3. Bedwetting alarm service: serving some NHS Trusts and specialist care facilities.

4. Partnerships: supporting specialist research in our area of expertise with academic institutions and carefully selected corporates.

At present, over 50% of our income is self-generated. Not only does this diverse strategy underpin our financial income, but it also gives grant funders, trusts and foundations confidence that we can continue to sustain our services with a diverse income portfolio.

Top tips for charities

ERIC is fortunate to have a highly skilled and adaptable team, who understand the importance of financial sustainability. We’re working hard and learning every day from our experiences. For other charities also on this journey, here are some things we’ve learned which you might find helpful.

1. Take the team with you: the old saying goes ‘everyone is a fundraiser’ and it’s true. By ensuring your team are all on the same page and understand the importance of income generation, you can identify opportunities that may otherwise have been missed.

2. Use your skills: think about the specialist skills your charity has in-house. Are there ways these can be packaged and used to generate income?

3. Lean into your strengths: if there’s an area that’s already generating income, what else can you do in that area? For us, it was our Shop and Training. By expanding our capabilities in this area and paying close attention to margins, we were able to increase our profitability.

4. Leverage your networks: as a charity, there are partner organisations and stakeholders you probably speak to every week. By understanding their needs and frustrations a bit better, you can identify opportunities to fill gaps in service provision or offer support that can in turn generate funding.

Looking to the future

Although it may not feel like it for many charity leaders currently mired in the complexities of financial challenges, this too shall pass. The economy ebbs and flows, funding cycles – as the name suggests – go round and come back around again. The anchor in all of this is your purpose and your people. While we focus on efficiency and cost control, we shouldn’t lose sight of the amazing teams, volunteers, trustees, and supporters in all of this.

Our experience, and indeed the tips above, show that often the solutions you seek are within your reach – but it requires clarity of thought, conversations with those around you, and conviction in what you’re doing.

So, to all my fellow charity leaders, I’d like to offer solidarity and hope. And to Team ERIC, our volunteers, trustees, funders, partners, donors, and supporters: my heartfelt thanks. Thank you for being there for us so we can continue to be there for the thousands of children and families who need us.
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* From 1900 calls in the year to September 2019, to 5987 calls in the year to September 2024.

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