The number of new charities registering over the last year is marginally up on the previous 12 months, but still at one of its lowest levels for eight years.

Figures for the year ending October 31 this year show there were 4,382 new charities registering in the UK.

This is up on the same period the previous year when there were 4,151 new charities. However, it is down 25% on pre pandemic levels for 2019/20.

The number of new charities registering had been climbing steadily pre-pandemic, from a low of 3,887 in 2013/14 and peaking in 2019/20 with 5,840 new charities being set up.

The figures have been published by legal firm Boodle Hatfield.

The firm’s partner Kyra Motley says the charity sector has still not recovered from the impact of the Covid pandemic and potential new charity founders are being put off by the cost-of-living crisis

“During lockdown many charities were hindered by not being able to carry out fundraising events. This is likely to have dissuaded people from establishing new charities,” said Motley.

“The cost-of-living crisis is also likely to present obstacles for fundraising, which may deter more people from setting up new charities.

“There are concerns that charities will find it challenging to raise funds due to rising energy costs and mortgage payments restricting what people can afford to give.

“At the same time charities are expected to see demand for their services increase considerably.”

According to a survey of grant makers during the summer there is a “genuine sense of desperation” among charities due to the cost-of-living crisis, highlighting concerns around financial uncertainty within the charity sector.

This survey by London Funders found increasing concern about the wellbeing of charity staff due to the impact of rising costs on income and demand for support.

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