What is it?
Charities can raise money in a wide variety of ways, and most small charities rely on a combination of several income streams rather than a single source.
Common sources include grants from trusts and foundations, individual donations, corporate support, fundraising events, earned income from trading or services, statutory funding from local or national government, and legacies.
Why does it matter?
Understanding your income mix matters because relying too heavily on a single source leaves a charity vulnerable. If a major funder withdraws or a grant comes to an end, an overreliant charity can face a serious financial shock.
Diversifying income, where realistic, helps build resilience. It is also something funders and auditors will often look at when assessing a charity's financial health.
Who needs to know?
Anyone involved in income generation, including trustees, fundraising staff, and finance staff, benefits from understanding the range of options available and the practical or regulatory considerations attached to each.
Trustees should have oversight of the charity's overall fundraising approach and risk profile, even if they are not directly involved in day-to-day fundraising activity.
Where do we start?
If you are reviewing or developing your income strategy, start by mapping your current income sources and how reliant you are on each. A simple table showing percentage of income by source over the past two to three years can be revealing.
- Grants and trusts: research funders whose criteria match your work, and be realistic about the time required to write strong applications
- Individual giving: even small or informal donor programmes can build a loyal supporter base over time
- Corporate partnerships: consider what you can offer a business beyond a donation, such as volunteering opportunities or visibility
- Earned income: some charities generate revenue through training, consultancy, or selling services aligned with their mission
- Legacies: a long-term income stream worth considering even for small charities, though it requires patience and sensitive communication
The Fundraising Regulator's Code of Fundraising Practice sets out the standards expected of charities raising money from the public, and is worth familiarising yourself with regardless of which methods you use.