The move comes as charities face intense financial pressure with falling donations and knock-on impact from rising employment costs and high utility bills.

The latest figures showed that in 2024 demand for grants from the charity sector soared to £7.84bn, up from £4.9bn in 2023. However, for a third year in a row, the analysis by the charity regulator showed an ongoing financial squeeze in parts of the sector. This follows a three-fold increase in demand for charitable services across England and Wales.    

The new Charity Commission guidance replaces previous advice, covering the fundamentals of effective grant-making, from setting funding priorities and carrying out due diligence, to monitoring grants and reporting impact.

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