Charitable giving feels the brunt of the economic downturn.

According to the latest report from the Charities Aid Foundation (CAF), in conjunction with the National Council for Voluntary Organisations (NCVO), donations made to charities have dropped by 11%.

In real terms, the fall means a loss of nearly £1.3 billion for the UK’s 170,000 charities, to a low of £9.9bn.

The report, based on a survey of 3,316 UK adults, carried out in June and October 2008 and February 2009, showed that the average donation had also dropped by £1 to £10 a month. 

However, the report said that while the economic downturn has had a detrimental effect on the monetary value that is given to charities, the actual number of adult donors has only fallen by 2%.

Medical research, hospitals and hospices, and children and young people continue to be the most popular choices for donors, with 20%, 15% and 14% respectively. 

CAF Chief Executive, John Low, commented that the nation was showing a selfless side in donating to charities despite themselves being affected by the downturn. Mr Low said: “It’s a reminder of what a generous nation we are that people are continuing to support their favourite causes, helping others when themselves are feeling less wealthy.”

Stuart Etherington, CEO of NCVO said: “Inevitably the recession is having an effect on charities, and on the levels of giving. But it would be wrong to predict the collapse of the sector because of the current climate.

“We would like to thank people for their ongoing generosity.”

CAF’s John Low said that Gift Aid – which is applicable to all UK taxpayers and adds an additional 15% onto donations without costing the donor any more – is one area which could help make up the shortfall in charitable giving.  It is estimated that approximately £750 million of Gift Aid is unclaimed every year.