More charities were removed from the official register in Greater London last year than were newly established, highlighting mounting challenges for voluntary organisations as they enter 2026.
According to Charity Commission data, 250 charities were registered in Greater London during 2025, while 270 were removed. Removals can include mergers or organisations completing their purpose, but the overall net decline emphasises the financial and operational pressures facing the sector.
National trends mirror the local picture. The Status of UK Fundraising 2025 report found that 54% of charities across the UK saw their fundraising income either remain static or fall, with many citing broader economic pressures. Meanwhile, demand for support continues to grow, with research from Charities Aid Foundation showing that 33% of Greater London residents rely on charitable services.
For many organisations, the focus is shifting from short-term survival to long-term sustainability.
Rising costs and increased competition
Charities face rising operational expenses, tighter regulatory requirements, and a more competitive fundraising landscape. Smaller organisations in particular are under pressure to maintain financial stability while meeting growing demand.
Adam Tier, head of underwriting at Ansvar Insurance, said:
“Greater London has always had an incredibly active charity sector, but these figures show just how challenging the current environment has become. Rising operational costs, a more competitive fundraising landscape and increased demand with an average of 33% of Greater London residents relying on charitable services mean organisations need to think differently about sustainability.”
Strategies for resilience
Sector experts highlight several practical approaches for improving sustainability. Partnerships between organisations serving similar beneficiaries can reduce overheads, enable shared back-office functions, and strengthen joint fundraising or grant applications.
Nurturing long-term supporter relationships is another key strategy. Consistent communication and storytelling can convert one-off donors into monthly givers, providing more reliable income streams.
Tier also emphasised the importance of reviewing risk and insurance arrangements: “Financial sustainability isn’t just about raising more money. Often, it’s about taking a fresh look at existing processes and asking the right questions. The organisations that thrive are those that plan ahead, understand their risks and adapt early, positioning themselves to weather these challenges and continue serving their communities for years to come.”
Community commitment endures
Despite the pressures, the registration of 250 new charities in Greater London in 2025 demonstrates the continued commitment of local communities to addressing social need.
For the capital’s voluntary sector, 2026 begins with a delicate balancing act: adapting to rising demand, managing limited resources, and ensuring long-term resilience. The organisations that succeed will be those willing to innovate, collaborate, and plan ahead.
