The UK has roughly 170,000 registered charities in England and Wales, but funding remains concentrated among a small number of large organisations.

According to the NCVO UK Civil Society Almanac, the top 4% of charities receive around 96% of the sector’s total income. Meanwhile, small charities — those with an annual income under £1 million — make up 96% of the sector, but collectively receive just 17% of total funding.

These small charities are deeply rooted in their communities, working closely with individuals and families to address complex and often overlooked needs. Far from being less effective, Lloyds Bank Foundation research has shown that small and local charities frequently deliver better outcomes for specific populations, particularly in areas of complex social need where trust is essential.

We believe that those closest to the challenges are best placed to solve them. That’s why we work with our donors to channel funding towards local organisations that truly understand their communities to create positive change. In 2025/26 alone, 87% of our funding went to organisations with an income under £1 million per year.

If you’re interested in helping local people to combat local issues, get in touch.