Devon charities face sustainability challenge as closures outpace new registrations

Charities across Devon are under growing pressure to remain sustainable in 2026, after new figures showed more organisations closed than opened last year.

Data from the Charity Commission reveals that 73 new charities were registered in the county during 2025, while 98 were removed from the register. Removals can include mergers or organisations completing their purpose, but the figures underline the difficult operating environment facing the voluntary sector, including rising costs, increasing regulatory requirements and shifting funding patterns.

The local picture reflects a wider national trend. The Status of UK Fundraising 2025 report found that 54% of UK charities saw their fundraising income either remain static or decline over the past year, with many attributing this to broader economic conditions. While income levels are not falling everywhere, many organisations report having to work harder to maintain financial stability.

Specialist charity insurer Ansvar Insurance says the sector’s main challenge is no longer short-term survival but long-term resilience.

Adam Tier, Head of Underwriting at Ansvar, commented: “Devon 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 20% of Devon residents relying on charitable services mean organisations need to think differently about sustainability.”

To help strengthen resilience, Ansvar is encouraging charities to consider several strategies, including building practical partnerships with organisations supporting similar beneficiaries in order to share back-office functions, fundraising efforts and grant applications. The insurer also highlights the importance of focusing on long-term supporter relationships, with regular communication and storytelling helping to convert one-off donors into more stable monthly contributors.

Charities are also being advised to review their insurance and risk exposure, ensuring cover reflects their current activities and avoids duplicated protection or unexpected gaps.

Despite the challenges, the creation of more than 70 new charities in Devon during 2025 demonstrates continued community commitment to addressing local social needs.

As Adam Tier added: “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.”