Funding for LGBT+ charities is plummeting as they struggle to tackle rising costs and increasing demand for their support, a report is warning.

It warns that funding for the sector has fallen by 8.6% in real terms between 2023 and 2025 and now stands at £53.3m.

Among the largest charities in the sector funding has decreased by 19% over the same period.

This comes as just under three in four LGBT+ organisations report an increase in demand for their services and almost two in three say they are operating on less than £5,000 annual income.

Among small charities in the sector around three in five report they are regularly using personal funds to deliver services and support.

“Organisations are doing amazing work, relying heavily on volunteers to provide a whole range of support and activities to the communities it serves across the UK, but the reality of decreasing funding is stark,” said Emma Miller-McCaffrey, development manager at LGBT+ Fund, which has published the report.

“We need more investment into the sector, and we need it now more than ever.”

Hostile environment

The report warns that this funding fall also coincides with an increasingly “hostile environment facing LGBT+ communities”, which is creating “additional challenges”, such as staff concerns around their safety and wellbeing and the threat of burnout.

More than half of charities have already taken steps to protect their staff, volunteers and beneficiaries against the threat of violence. Over one in three have launched staff wellbeing support services and a similar proportion have put digitail security measures in place.

Four in five of the largest charities in the LGBT+ sector have put in place protection measures.

One respondent said: “Overall, the more hostile climate creates a tension between rising need and reduced confidence from external stakeholders, making it harder to sustain and grow our work at a time when it is most needed.”

The LGBT+ Fund is a consortium focusing on bringing in more funding to the LGBT+ sector.

In March London and South East based LGBTQ+ charity Metro announced its closure after more than 40 years supporting people. It said its decision was made despite months of work “to stabilise the charity’s financial position and explore all viable options to secure its future”.

“Despite these efforts, it has become clear that the organisation can no longer continue operating in its current form,” said the charity, which provided sexual health, HIV support, youth, mental health and advocacy services.

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