Income from local fundraising has dramatically increased over the last year, according to the Institute of Fundraising’s Fundratios annual benchmarking survey.

The figures for 2005/06, analysing the fundraising income and expenditure of 37 charities, found that local fundraising had increased by 17%. Corporate income rose by 7.4% (with a 30% increase in sponsorship) and legacy fundraising by 4.6%.

Committed giving grew by 2.9%, despite a 5.4% cut in investment in the technique. Local fundraising now accounts for 11% of charity income – the third largest source after legacies and committed giving.

Commenting on the research, Institute director of policy and campaigns Megan Pacey said: “It remains the case that charities large and small need to work hard to fundraise in this competitive consumer-driven age.

“Our findings on local fundraising income are particularly significant to the sector at this time,” she added. “Unlike the Republic of Ireland where much fundraising is done at community level, this is relatively new territory for UK charities and it will be interesting to see how local fundraising evolves as a technique in years to come.”