One of the most robust, long‑running surveys of charities and voluntary organisations in England and Wales, Third Sector Trends offers timely insight into how the sector is actually functioning on the ground.

The second report, People, work, ambition and impact (December 2025), highlights several findings that are particularly relevant for funders, donors and community partners.

First, the report reinforces how people‑powered the sector remains. Around 4.3 million regular volunteers continue to underpin delivery, particularly in small and micro organisations. However, many organisations have still not recovered volunteer numbers to pre‑pandemic levels. This has real implications for sustainability and reach.

Second, while paid employment in the sector has grown modestly, smaller organisations are more exposed to staffing challenges. Trustee recruitment is also becoming harder, particularly for organisations with incomes under £50,000.

Third, the sector remains ambitious and surprisingly optimistic. Most leaders expect income from charitable trusts and foundations to remain stable or grow, and there is strong confidence in partnership working and private sector support. Optimism persists even where day‑to‑day pressures are significant.

Finally, the report highlights a potential long‑term risk: investment in people is slipping. Fewer organisations are prioritising training, wellbeing and leadership development compared with five years ago. In a sector that relies so heavily on skilled staff, volunteers and trustees, this matters.

For our donors, the message is clear: funding that supports organisational capacity, leadership and people, not just projects, is increasingly important. For the sector, Third Sector Trends remains an invaluable mirror — helping organisations understand where they sit and what may lie ahead.