Research into household donor behaviour has found that 4.9m people have chosen not to make a one-off donation to charities over the last month due to the cost-of-living crisis.
This accounts for just under one in ten (9%) people saying they are holding back on donating as inflation hits their household income.
Regular giving is also down, with 3.2m people saying they had either reduced or stopped regular payments to charity amid soaring costs.
One in five people (19%) are looking to cut back on their donations, up on figures from six months ago when 14% said they plan to reduce their giving.
The figures have been revealed in Charities Aid Foundation research. This found that in September 26% of people had donated over the previous month, down on a pre-pandemic giving rate for the same month of 30%.
The average monthly donation in September was £51, down on August’s figure of £67.
The decline in giving is also affecting in-person fundraising events. While summer and early autumn is a crucial time for major events, just 8% of people sponsored a participant last month. In August only 5% gave money to someone taking part.
New research shows further reductions in donations to #charities, amid the rise in running costs and increasing demand for their services. 4.9 million people chose not to make a one-off donation last month as a direct response to the #CostOfLivingCrisis. (1/3) pic.twitter.com/pLaP6wN3JR— Charities Aid Foundation (@Caf) October 27, 2022
“Charities need donations now more than ever, as more families rely on the vital services they provide,” said Charities Aid Foundation chief executive Neil Heslop.
“Mass giving is crucial for many charities, so as people cut back, Government and private sector funding which supported charities through the pandemic is greatly needed to help them through this crisis.”
He added: “Despite falling donations, charities are working hard to help the growing number of families at the sharp end of the cost-of-living squeeze. But ultimately, charities are having to do much more, with much less money.”
The fall in donations coincides with soaring demand for charities, particularly those tackling food poverty, according to a survey by FareShare.
This found that seven in 10 charities supported by the food distribution organisation are supporting people in need of help for the first time.