More than one-third of adults who give to charity say they have reduced their donations because of the cost-of-living crisis, a new survey by the investment management firm Rathbones indicates. 

The survey of 1,042 UK adults in May, including 846 who donated to charities and 167 who used charities’ services, asked people what had happened to the amount of money they donated to charity since the cost-of-living crisis started.

It found the average reduction in monthly support for charities was £14 a month, or £168 a year. 

But although 37 per cent of respondents said they had reduced their donations, 39 per cent said their charitable giving had not been affected and 5 per cent said they had increased their monthly donations or started to give for the first time. 

Almost one-fifth (18 per cent) reported that the amount they give had “dropped sharply”, and 60 per cent of those who had cut back said they did not know when they would be able to return to their previous level of donations. 

Researchers found that 11 per cent said they never planned to return to giving the same amount to charity.

But 13 per cent of those who had cut donations estimated they would be able to return to their previous levels of giving within six months, while another 8 per cent believed they would increase donations within a year.

Data from the National Council for Voluntary Organisations previously showed that the public contribute about 47 per cent of all funding for the voluntary sector, and of 101 senior executives at UK charities surveyed by Rathbones, also in May, 77 per cent said annual income had fallen during the cost-of-living crisis, with 67 per cent saying it had fallen by one-fifth or more.

Andy Pitt, head of charities at Rathbones, said: “We cannot underestimate the cost-of-living crisis and the devastating impact it is currently having on charities. 

“Not only has it led to a reduction in charity funding, which is having a major impact on the services they can provide, but this has come at the same time when charities are having to deal with a substantial rise in demand for their services.”

He said that to “cope with this crisis”, Rathbones had started to see clients drawing on long-term investments to support the day-to-day operation of the services they provide, or meet increased demand for grant-making.

“This is concerning, not least because these funds are finite and cannot easily be replaced once they are gone,” said Pitt.

“Fundraising remains a key component for the longevity of the charity sector, and it is important that they maximise all aspects of their finances, so they continue to support their beneficiaries.”