Finance dominates debates about the third sector to such an extent that it sometimes seems as if money is the only driver of sector activity. As instability in voluntary organisations’ income is the norm, not the exception, it is hardly surprising that leaders of third sector organisations (TSOs) feel as if they are struggling against the odds.
The results from the third report was published on 15th January 2026 and is available here: Third Sector Trends in England and Wales 2025 – income sources, assets and financial wellbeing (January 2026)

Laying the blame for the sectors’ financial woes on external factors is the most common response. A recent editorial from The Guardian exemplifies this, when it argues that: ‘Britain is now in dire need of a new golden age of voluntarism. But the current financial squeeze on charities, which the government has done too little to address, is pointing in the opposite direction.’ (1st January 2026)
Finance is important, that is undeniable. But a majority of voluntary organisations manage with little money as all their energy is provided by volunteers. In such circumstances, financial issues are secondary to those of principle and ambition to achieve the objectives leaders of voluntary organisations prioritise. Certainly, bigger organisations need money to pay for salaries – but it is people who get the jobs done. That is why, In this third national report from Third Sector Trends in England and Wales 2025, money is conceived as ‘facilitative’ for voluntary organisations. It is one amongst many resources to help get things done.
Sometimes, with careful management, nudging and persuasion money finds its way fairly reliably to voluntary organisations along well-trodden paths such as public giving, philanthropy, members who pay subscriptions, from property rents, regularised trading activity, dividends from investments or interest on endowments. More often, getting hold of money requires real effort, determination and imagination. For example, when applying for grants voluntary organisations have to be creative so as to meet the stipulations of funding bodies whilst permitting TSOs to sustain, somehow or other, aspects of tried-and-tested practice to which they are firmly committed and are heavily relied upon by their beneficiaries.
Raising funds can be challenging for TSOs. Especially so when they are engaged in activities which are ‘unpopular’ or ‘unfashionable’ with government, trusts and foundations, philanthropists or public giving is concerned. One example, over the last 15 years is youth work in less advantaged areas where government agencies and many local authorities all but abandoned lending support to this area of third sector activity. But suddenly, in response to low levels of labour market engagement of young people who are not in employment, education or training (NEETS), youth work is back on the political radar.
Competition exists because voluntary organisations’ leaders are so ambitious and determined to achieve their objectives, so it is unlikely that there will ever be enough money to meet demand. Furthermore, new TSOs are being established to enter into new or existing fields of work. In the last financial year, for example, the Charity Commission reported that 9,840 applications had been received to set up new organisations, up from 9,008 the previous year. And in the lifetime of this project, the number of Community Interest Companies has grown more than ten-fold from 3,572 in 2010 to 37,081 in March 2025.
With these points in mind, analysis in this report proceeds from the view that there will always be ‘winners’ and ‘losers’ in funding terms within the third sector. And rather than implying, misleadingly, that the sector is in a perpetual financial crises that is driven solely by external forces – it is recognised that ambition and internal competition within the third sector helps to explain why there never seems to be enough money to go around.
The results from the third report was published on 15th January 2026 and is available here: Third Sector Trends in England and Wales 2025 – income sources, assets and financial wellbeing (January 2026)
A blog providing a summary of findings will be published here: Tony Chapman Blog
The full report will also be available on Community Foundation North East‘s website: Third Sector Trends
Sector press stories on the research report can be located here Civil Society Media, Third Sector and Charity Times.
All the national reports on findings and technical reports on methodology and analytical techniques can be found here: Third Sector Trends publications archive.











