Fundraising for UK Charities: 12 Strategies to Raise More in 2026

Charity fundraising does not have to be complicated, but there are several different avenues you can choose from to raise money for your organisation.

Regardless of your organisation's size, most charities can benefit from all of the fundraising ideas in this article. Some fundraising strategies are well-known, while others have only become popular recently.

As you learn more about the best ways to fundraise with companies, individuals, and foundations, take the time to determine which approach will work best for your organisation.

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In this article:

• What is charity fundraising?

• Why fundraising matters for UK charities

• Twelve ways to raise money for your UK charity

• Mistakes to avoid when fundraising for your charity

• UK legal compliance for charity fundraising

• Start raising money with free fundraising tools

• Frequently asked questions

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What is charity fundraising?

Charities, like for-profit companies, need funding to survive.

The difference is that funding for charities must connect to the charity's purpose, but that does not mean you cannot raise funds in various ways. Charity fundraising is more than just events, online campaigns, and accepting online donations.

Organisations can raise funds from individuals, companies, and foundations. The following twelve strategies can help you raise more money and build stronger relationships with donors.

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Why fundraising matters for UK charities

Fundraising helps charities reach a larger audience, encourage supporters to donate, find more volunteers, and further develop their programmes. Fundraising campaigns are crucial for organisations that hope to grow and fulfil their mission.

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Twelve ways to raise money for your UK charity

Fundraising is more than events and online campaigns. Before we look at the best approaches, it is worth naming a problem many small UK charities live with: a £15 fete ticket, an autumn appeal, a Christmas raffle, and a sponsored 5K currently means four different platforms and four different invoices. That fragmented stack is costly and time-consuming. The twelve strategies below will help you plan a joined-up approach, and at the end we explain how Zeffy consolidates the whole stack, free, with Gift Aid built in.

As you explore these strategies, remember that not every approach will suit your organisation. You must assess your resources and limitations before deciding which ones to pursue.

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How to raise money from companies

1. Sponsorships

Corporate social responsibility is a significant trend, and companies actively look for ways to demonstrate their community impact to customers. UK charities can benefit from this. Event sponsorship is a common strategy when approaching companies.

Charities searching for event sponsors should look at local businesses with a similar audience. A primary reason companies sponsor events is the chance to reach new people. If you can show that your donor base will be interested in their products or services, you will have a stronger case for their support.

Another way to connect with potential corporate sponsors is to start the relationship through different channels. Asking for an in-kind donation for your event is one easy way to get started.

Many UK companies also offer employees paid volunteer time to support their chosen charities. Contact your existing donors to find out whose employers offer this. Your donor will often be the best introduction to the business. During or after a volunteer day you can personally thank the company and build a relationship that may develop into a longer-term sponsorship.

The Chartered Institute of Fundraising (CIoF) and NCVO both publish practical guidance on developing corporate relationships and structuring sponsorship agreements that benefit both parties.

2. Corporate partnerships

Solid relationship-building is essential when approaching companies. A strong relationship can turn event sponsorship into much more. Corporate-charity partnerships happen when the two organisations share a common goal. Businesses gain an opportunity to demonstrate responsibility to their customers; charities benefit from increased donors and volunteers.

One established pattern in the UK is round-up-at-till giving, where retail customers can round up their purchase to the nearest pound, with the difference going to a nominated charity. This model is facilitated in the UK through schemes such as Pennies, the digital charity box for card transactions at point of sale, and through direct retailer-charity partnerships. The mechanism is straightforward and generates consistent small donations without friction for the donor.

Similarly, foodbank networks such as the Trussell Trust partner with supermarkets and retailers for collection points and donation campaigns. These partnerships work because both sides share a clear, aligned purpose.

When approaching a company for this type of partnership, be specific about how the collaboration will work, what the company gains in public profile, and how you will report on impact.

3. Matching gifts and payroll giving

UK employer matching is smaller than in the United States but growing. Many large UK employers, particularly in banking, professional services, and retail, will match donations made by employees to their chosen charity.

The UK mechanism for workplace giving is Payroll Giving, an HMRC-administered scheme where employees donate directly from their pre-tax salary. This means the charity receives the donation before tax is deducted, giving an equivalent benefit to Gift Aid but without the need for a separate Gift Aid declaration. Some employers match payroll giving contributions, effectively doubling the value to the charity.

Ask your existing supporters whether their employers run a matched-giving or payroll giving scheme. Your donors are your best route into these programmes. The Payroll Giving Quality Mark (run by government-approved Payroll Giving agencies) helps identify employers who actively promote the scheme.

If you have developed a corporate partnership, you can also create a matched-giving campaign where the company matches all donations up to a specific amount during a defined window.

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How to raise money from individuals

4. Events

Fundraising events are an excellent way to raise money from individual donors. Whether it is a summer fete, quiz night, Christmas fair, gala dinner, or sponsored 5K, your organisation can raise funds through event tickets, raffles, auctions, and individual donations.

While you can raise money, the primary reason to host an event is to reach people who do not yet know your organisation and to share your mission.

A note on UK event ticketing costs: community events run on thin margins. Per-ticket platform fees on Eventbrite (roughly £1.29 plus processing on a £15 fete ticket) can eat a significant share of your event's profit. Ticket Tailor (flat £0.22 to £0.60 per ticket, 50% charity discount) and TicketSource (0% organiser fee, buyer pays a booking fee) are popular UK alternatives, but each covers ticketing only. Zeffy consolidates ticketing, donations, raffles, and memberships in one free platform, so you are not paying separately for each tool.

You can reach a larger audience with social media, paid advertising, and word of mouth. If you are having trouble selling tickets, make it easy for existing supporters to share event information on their own social media pages. You might also offer a small incentive for the supporter who sells the most tickets. Check out three no-cost ways to promote your event.

At the event itself, in person or online, share videos or include short speeches from the people who benefit from your programmes. Adding these before a live auction or donation appeal will increase what you raise.

One more practical point: cash is declining at UK community events. Many supporters no longer carry notes or coins. If your fete or quiz night cannot take card payments, you will lose donations. Zeffy's tap-to-pay feature lets you take card payments directly from a phone, with no reader required and no transaction fee.

5. Peer-to-peer online campaigns

Peer-to-peer and crowdfunding campaigns are among the best online fundraising approaches. They are also an excellent way to reach people who do not yet know your organisation. You can hold a peer-to-peer campaign on its own or attach it to an existing event or campaign.

If you want to add peer-to-peer fundraising to your fundraising calendar, platforms like Zeffy make it straightforward to spread awareness and raise funds. Start with a group of supporters who have a solid following online and a genuine interest in sharing your cause.

Training your fundraisers to use available tools and keeping them updated with regular progress reports and short videos will help them raise more. While they fundraise, you can recruit additional supporters online. A competition where the person who raises the most wins a prize is a proven way to keep momentum going.

The best-known example of a viral peer-to-peer campaign is the Ice Bucket Challenge, which raised tens of millions globally for motor neurone disease research. A simple, shareable action, tipping a bucket of ice water and challenging friends to do the same, spread worldwide and demonstrated how a social media mechanic could transform fundraising at scale.

In the UK, peer-to-peer fundraising is closely linked to challenge events. The TCS London Marathon and Great Run series are the highest-profile examples: both use Enthuse exclusively as the official fundraising platform (under contract through 2034). If you have runners in either event, you will onboard them through Enthuse. Outside those flagship events, fundraisers can use any P2P platform. Many small UK charities are moving away from JustGiving's default ~17% suggested tip prompt towards platforms where more of the donation reaches the charity. If you are not tied to a flagship event, you have a free choice, and Gift Aid handling should be a key part of your decision.

6. Major donor cultivation

Many small and medium-sized charities rely too heavily on event fundraising. Successful organisations also invest in prospecting and building strong relationships with major donors. A major donor is different for every charity, whether you define that as £5,000 or £1 million, the process of building these relationships is the same.

The first step is donor prospecting. Look inside and outside your organisation for these individuals. Zeffy's donor management tool lets charities collect and store donor information, segment donors by their interests and capacity to give, and add notes on all communication.

Before you look outside your charity, pull a report of significant gifts and contact existing supporters who already have a relationship with a prospective major donor. Ask them to introduce that person to your CEO or Chief Executive and the Chair of Trustees.

Donor management tools like Zeffy make it easier to create and follow a moves management plan for each donor. Moves management is a structured process for fundraisers and trustees to communicate with a donor, strengthen the relationship, and ultimately make a well-timed ask. Because several people may be involved, it is essential to log every communication step and piece of feedback in your donor management system.

Some major donor fundraising options include programme funding, bursaries and endowments, and legacy giving. Legacy giving, sometimes called gifts in wills, is the opportunity for supporters to leave a gift to your charity as part of their estate planning. Legacies represent a significant share of UK charitable income each year. Remember A Charity, the UK's legacy giving coalition, provides resources to help charities introduce the subject sensitively and build a legacy giving programme. The Chartered Institute of Fundraising also publishes best-practice guidance on major donor and legacy fundraising.

7. Regular giving

One-time gifts from individuals are valuable, but regular gifts are better. Regular donations help your organisation plan its fundraising and programme calendars and give a greater chance of building long-term relationships.

In the UK, Direct Debit is the dominant mechanism for regular giving, accounting for a substantial share of all UK charity donations. Card-based recurring giving works too, but if your platform supports Direct Debit, offer it: donor retention on Direct Debit is materially higher than on card in UK sector benchmarks. Donors set up a Direct Debit and rarely cancel unless circumstances change, giving your charity stable, predictable income.

A membership programme that offers increased access to your trustees or beneficiaries can encourage more regular donations from your supporters. Other perks you can offer members include regular programme updates via newsletters, priority booking for events, VIP behind-the-scenes tours of your facilities, and early access to tickets.

Donor communication is essential at every stage of the membership relationship. Send a personalised letter when people join as a member, after every donation, and when they leave. Thank members for their involvement, share updates on programmes and events they care about, offer more ways to get involved, and ask for their feedback.

Be sure to direct donors to a donation page where they can easily set up a regular gift. Note that automated 'tax receipts' are not required for UK basic-rate donors, the charity reclaims Gift Aid directly from HMRC. However, automated donation acknowledgements and Gift Aid declaration capture are best practice and mean your donors receive proper confirmation of their gift. Zeffy handles both natively.

8. Earned income

Earned income is revenue generated by selling goods or services rather than relying solely on donations, grants, or gifts. Creating an earned income stream can raise significant funds for your organisation.

If your organisation sells a product or service, it must align with your mission. A hospice offering complementary therapies, an environmental charity selling eco-friendly products, or a wildlife trust operating a visitor centre are all examples of mission-aligned earned income.

UK museums offer an instructive model. Institutions such as the National Trust (one of the UK's largest membership charities, with income from membership fees, shops, cafés, and venue hire), the Royal Horticultural Society, and the British Museum (free admission but significant earned income from retail, cafés, touring exhibitions, and commercial hire) all demonstrate how a charity can reduce its reliance on grant income by building earned income streams that reinforce the mission.

Charity shops are a distinctly UK-mainstream channel for earned income. Thousands of UK charities operate retail shops, selling donated goods with the proceeds going directly to the cause. The Charity Retail Association estimates that charity shops collectively raise significant sums each year for the sector, check their published data for the current figure.

Other earned income streams for charities include:

• Membership fees

• Fees for workshops, online courses, and webinars

• Consulting or training services

• Rental income from owned premises

• Licensing and royalties

• Community lotteries

Charities must be transparent about these sources of income, how they are used, and any potential conflicts of interest. Importantly, charities must also consider the VAT treatment of trading income. If trading is significant or not 'primary purpose trading', the charity may need to set up a trading subsidiary that gifts its profits back to the parent charity under Gift Aid (corporate). The Charity Tax Group is the specialist technical reference for this area.

Foundations also prioritise charities that generate earned income. They value the financial health and reduced dependence on grant funding that diversified income demonstrates.

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How to raise money from foundations and grants

The UK grant landscape is distinct from the US one. When you are researching grants for your organisation, start with local community foundations, winning grants with smaller, locally-focused funders builds your credibility and track record.

The UK Community Foundations network includes around 47 accredited foundations across the country, each distributing grants to local charities and community groups. They are the UK equivalent of the advice to 'start small and local'.

9. Programme grants

Programme grants are the most common type. Funders with a similar mission to your own programme will be most likely to support you. Research foundations whose goals align with your work and look for personal relationships you may already have within those organisations.

The National Lottery Community Fund (tnlcommunityfund.org.uk) is the largest grant-maker to charities and community groups in the UK, distributing Lottery good-cause funding across England, Scotland, Wales, and Northern Ireland. For arts and cultural organisations, Arts Council England is the primary funder. Both are essential starting points for any UK charity's grant research.

Many funders also provide funding for operational support or unrestricted funding, which is especially helpful for newer charities needing help to register, build a website, and develop their programmes. Google Ad Grants, available through TechSoup UK validation, provides eligible charities with up to £7,500 per month in Google Search advertising credit, which is effectively an in-kind grant.

The NCVO Civil Society Almanac is the authoritative annual reference for UK voluntary-sector statistics, including grants data. Verify any figures against the current edition before citing them.

10. Capacity-building grants

If your charity is new or hoping to grow, capacity-building grants are also an excellent option. Many foundations offer organisational development grants to help pay for strategic planning, trustee development, leadership training, financial management, technology upgrades, staff training, and consultants.

11. Challenge grants

A challenge grant is when a funder offers to match the donations raised during a campaign. The funder's gift is typically contingent on the charity reaching a fundraising target. Charities running capital campaigns for large building or infrastructure projects can use challenge grants to energise donors.

The Big Give Christmas Challenge is the UK's largest online matched-giving campaign. Participation requires securing a 'Champion' pledger who commits funds in advance; during the campaign window, every donation is matched by the Champion's pledge. For charities that can access it, it is one of the highest-return campaigns in the UK charity calendar.

12. Donor-advised funds and CAF accounts

UK charities can also connect with donors who give through donor-advised funds (DAFs). A donor-advised fund allows individuals to make a significant charitable contribution, receive immediate tax relief, and then recommend how the gift should be distributed over time.

DAFs are less mainstream in the UK than in the United States, but they exist through a small number of providers. The Charities Aid Foundation (CAF) is the most widely recognised, the CAF Charity Account and CAF Charitable Trust are the UK reader-familiar equivalents of a DAF. Most registered UK charities are automatically listed in the CAF database as eligible recipients. Other UK DAF providers include Stewardship and Prism the Gift Fund.

Charities can reach out to CAF and similar providers to explore partnership opportunities, confirm that your charity is listed as a recommended recipient, and ask about grant recommendation programmes.

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Mistakes to avoid when fundraising for your charity

Fundraising is more than throwing ideas at the wall. Planning, diversifying, and communicating consistently are all essential. Stay ahead of common pitfalls by avoiding the following mistakes.

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No clear strategy

Charity trustees may want to jump on every fundraising trend, but action without a clear plan causes more harm than good. A strategic fundraising plan will help your organisation prioritise programmes and activities, set a realistic financial target, and build a budget you can actually meet.

Set clear goals, identify your target audience, and develop events and campaigns that will resonate with your donor base.

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No donor management

Communication and stewardship are crucial for donor relationships. Many charities are volunteer-run and struggle to find time for regular communication. Fundraising without donor relationships is likely to fail.

Find ways to build communication plans for each donor type. Understand each group's programme interests, their capacity to give, and the relationships they already have within your organisation.

Track this information in your donor database. Create a moves management plan for each donor type and involve staff, trustees, and volunteers in the communication process. The more people who are involved, the more likely you are to keep up with communication goals and strengthen relationships.

Modern UK CRM tools such as Beacon and Donorfy are built specifically for UK charities, with native Gift Aid claim submission, JustGiving and Enthuse integrations, and UK charity-sector reporting. Zeffy also offers a free donor management feature designed to help you engage effectively with your donors.

Ways to regularly communicate with donors:

• Powerful beneficiary stories

• Short video updates

• Personalised donor acknowledgements

• Welcome letters for new donors and members

• Supporter surveys

• Monthly newsletters

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Neglecting Gift Aid

Small UK charities routinely under-claim Gift Aid. If you accept donations from UK taxpayers and have not yet set up HMRC Charities Online plus a Gift Aid declaration flow at your donate page, you are leaving 25p for every £1 on the table.

As one UK charity treasurer put it: 'Every pound that you donate, we get twenty-five pence back. Charities love that, and actually they survive on that.' Gift Aid is not a bonus; for many small charities it is a material share of their annual income.

The Gift Aid Small Donations Scheme (GASDS) adds a further 25% top-up on small cash and contactless donations of £30 or less, up to £8,000 in eligible donations per tax year, with no declaration required. Automating Gift Aid declaration capture at your donate form means you capture it at the moment it matters.

Full guidance is available from HMRC.

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Ignoring lapsed donors

If your organisation has built a solid donor management system, make sure lapsed donors are part of your communication plan. Donor retention declined significantly across the charity sector in recent years. The economy plays a role, but a primary reason donors give for leaving is the lack of communication.

Lapsed donors may have stopped supporting your charity recently or years ago. Either way, find ways to reach out, understand why they left, and show them what has changed. Visit our website for writing tips and templates to re-engage your lapsed donors.

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Not diversifying revenue streams

Relying on one or two revenue streams is a common and risky mistake. Smaller charities are especially vulnerable, but you cannot assume grant and event income will always be sufficient.

Several revenue sources on this list take minimal time or cost to start:

• Individual donations

• Membership fees

• Earned income

• Online fundraising campaigns

• Matching gifts and payroll giving

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Overcommitting to restricted funds

Funders and corporate partners will have specific funding interests that do not always align with your organisation's internal needs. While it is tempting to pursue popular programme-restricted funding, you must also raise enough unrestricted funds to cover administration, fundraising, and operational costs.

Balance restricted and unrestricted fundraising. Include both programme funding and operational fund requests in your communications and explain the importance of each to your donors.

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Ignoring legal and ethical guidelines

The Charity Commission, Fundraising Regulator, and HMRC all have clear requirements for charity fundraising in the UK. Your organisation must comply with each of these or risk reputational damage, regulatory action, or loss of charitable status.

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UK legal compliance for charity fundraising

Understanding the UK regulatory framework is essential for any charity. Here is a practical overview of the main areas.

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Charity registration

To register as a charity in England and Wales, your organisation must have an annual income above £5,000 (Charitable Incorporated Organisations must register regardless of income) and at least three unrelated trustees pursuing exclusively charitable purposes for the public benefit. The legal basis is the Charities Act 2011, as amended by the Charities Act 2022. Register with the Charity Commission for England and Wales (CCEW).

In Scotland, all charities must register with the Office of the Scottish Charity Regulator (OSCR) regardless of size. A charity already registered in England and Wales must register separately with OSCR before operating in Scotland.

In Northern Ireland, registration is with the Charity Commission for Northern Ireland (CCNI), with phased registration ongoing.

Trustees are the people legally responsible for the charity. The Charity Commission's CC3 guidance sets out their essential duties.

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Conflict of interest policy

The Charity Commission expects charities to have a clear conflict of interest policy to manage and disclose potential conflicts among trustees, staff, and volunteers. The Commission's CC29 guidance covers this in full.

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HMRC charity recognition

Registering with a charity regulator and being recognised by HMRC are two separate steps. To claim Gift Aid, your charity must apply for HMRC charity status and receive a Charities Reference Number via HMRC Charities Online. Many small charities complete regulator registration but miss this step, leaving Gift Aid unclaimed.

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Gift Aid rules

Gift Aid allows your charity to reclaim 25p from HMRC for every £1 donated by a UK taxpayer, a £100 donation becomes £125 to your charity at no extra cost to the donor. To claim Gift Aid you need a valid declaration from the donor covering their full name, home address, your charity's name, and confirmation that they are a UK taxpayer who wishes the donation to be treated as Gift Aid.

Key rules:

• Claim window: 4 years from the end of the financial period in which the donation was received.

• Records: Gift Aid declarations must be kept for at least 6 years after the last donation they cover.

• GASDS: a 25% top-up on small cash and contactless donations of £30 or less, up to £8,000 in eligible donations per tax year (yielding up to £2,000 in additional top-up), without the need for a written declaration.

• Gift Aid does NOT apply to payment for goods or services, this includes event tickets, raffle entries, and auction lots at fair value. Charities must be transparent about the split between any donation element and the value of any benefit received.

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Solicitation and transparency

Once registered, you can solicit donations from individuals, companies, and foundations. You must be transparent about how funds will be used and whether goods or services have been given in exchange for any contribution.

If your charity sells event tickets, collects funds through an auction, or runs a raffle, you must make clear to donors how much of their payment counts as a donation and whether Gift Aid can be claimed on any part of it. Gift Aid never applies to raffle ticket purchases.

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Fundraising Regulator and the Code of Fundraising Practice

The Fundraising Regulator oversees fundraising standards in England, Wales, and Northern Ireland. It maintains the Code of Fundraising Practice, whose current version came into effect on 1 November 2025 and includes a new Section 9 covering online fundraising platforms. In Scotland, the Scottish Fundraising Adjudication Panel handles complaints under the same Code.

The Fundraising Preference Service allows donors to ask charities to stop contacting them. Respect it. The Code's core principles are: legal, open, honest, and respectful.

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Raffles and lotteries

Fundraising raffles are legally 'lotteries' under the Gambling Act 2005, regulated by the Gambling Commission. Most charity raffles are small society lotteries: you register with your local licensing authority (council) rather than the Gambling Commission directly.

Key thresholds for a small society lottery (verify live against the Gambling Commission's guidance before running an event):

• Registration fee: £40 initial, £20 annual renewal

• Maximum ticket sales per single lottery: £20,000

• Annual aggregate cap across all your lotteries: £250,000

• At least 20% of proceeds must go to your good cause

• Maximum single prize: £25,000

• Submit a return to the local authority within 3 months of the draw

Incidental non-commercial lotteries, where tickets are sold and the draw is held entirely at a single event, need no registration. School fete raffles and dinner draws fall into this category.

Gift Aid never applies to raffle ticket purchases.

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Gift Aid declarations and donor acknowledgements

When collecting donations, have a clear gift acceptance policy covering which types of gift your organisation can accept. You should also have policies on donor privacy and record-keeping to ensure compliance with the UK GDPR and Data Protection Act 2018 (overseen by the ICO).

After receiving a gift, send a prompt acknowledgement to the donor. Zeffy lets your organisation send automated donor acknowledgements and capture Gift Aid declarations at the donate form, so nothing falls through the gaps.

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UK GDPR and data protection

Direct email and SMS marketing to donors is governed by the Privacy and Electronic Communications Regulations (PECR). The ICO published updated charity 'soft opt-in' guidance in 2026. Make sure your donor data processing has a clear lawful basis (consent or legitimate interest are the most common for charities) and that your forms explain how data will be used. UK VoC research confirms that many charities are asked 'Are you GDPR compliant?' before a donor or supporter will sign up, address this directly on your platforms.

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Financial reporting

UK charities must file an annual return with their regulator (Charity Commission, OSCR, or CCNI) and prepare Trustees' Annual Report and Accounts (TAR) under the Charities SORP (Statement of Recommended Practice). Charities constituted as companies limited by guarantee also file accounts with Companies House.

All filings are publicly available on the relevant charity register. The Charity Commission Register of Charities is the UK's primary public record, the equivalent of Charity Navigator in the US does not exist; the register itself is where UK donors and funders look to verify your status.

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Start raising money with free fundraising tools

As your charity decides which fundraising approaches work best, whether online campaigns, events, peer-to-peer, or grant funding, diversify your fundraising calendar and avoid putting all your efforts into a single idea.

Right now a £15 fete ticket, an autumn appeal, a Christmas raffle, and a sponsored 5K probably means four different platforms and four different invoices. Zeffy handles all of it, free, with Gift Aid built in.

Zeffy can help your charity collect donations online, run peer-to-peer fundraising campaigns, manage memberships, sell event tickets, and run raffles and lotteries, all in one place, with no platform fee, no transaction fee, and no credit card fee, ever.

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Frequently asked questions

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