The Charities Aid Foundation distributed a record £1.13bn on behalf of individuals and businesses in its latest financial year, an increase of £108m on the previous year, new figures show.

The charity, which works with governments, businesses and private philanthropists in the UK, Canada and US to send funds to good causes worldwide, has published its latest accounts, for the financial year ending 30 April 2024.

Funds distributed worldwide rose to £1.13bn compared to £1.02bn in 2022/23 and donations received by the charity increased to £1.15bn.

CAF’s total income grew to £106.1m, an increase of almost £30m on the previous year (£76.4m), which the charity partly attributed to the impact of the “significant” rise in interest rates in the UK and US. 

The charity’s financial investments also saw “significant gains” of £73.5m compared to losses of £10.8m in 2023.

CAF reported an increase in expenditure from £69.3m to £91.4m in 2023, which the charity said was a result of additional spending on its growth and transformation plans, and “rapid scaling-up” of its activity for CAF America and the impact of inflation on its staff costs.

Staff costs at CAF rose to £24.9m, mainly consisting of a £4m increase in salaries and wages from 2022/23.

The highest earners at the charity also increased, by 20, with 74 staff members earning between £60,001 and £300,000.

The CAF’s full-time employee numbers increased to 406 from 374.

In the introduction to the report, Neil Heslop, chief executive of CAF, said it was the charity’s “unique task to connect donors and charities”.

“I am always conscious that we can do more, and that there is potential for greater giving,” Heslop said.

“In the UK, our research has underlined the very severe challenges charities continue to face.

“They are the glue that holds our society together and it is a tribute to the trust people place in them that they turn to them in times of need.

“But we know they have struggled and continue to do so, with some taking the impossibly tough decision to turn people away.”

Heslop said the potential for greater giving is what lies behind CAF’s advocacy work to push philanthropy up the political agenda, and the charity has made the most of the fact its centenary coincides with a general election year.

“As we look towards the next 100 years, it has given us the opportunity, alongside NCVO and others, to engage with policymakers about how future governments can work with the sector to unlock more giving,” he said.