The Great Funding Shift: Why UK Public Services Are Turning to Fundraising Professionals

In the last few months approaches from schools (state, MAT and independent) and NHS Trusts enquiring about first steps in developing professional income generation have shot up. The short answer is have a chat to a fundraising consultant and the short answer to where to find someone is to contactus@ferntalent.com, we’ll introduce you to someone for no mark up and no obligation.

It’s become a bit of a cliché (in my mind at least) that the government cuts funding to a core service then slowly hands over responsibility to the third sector, but how true is it?

I thought I’d use my last credits with Anthropic to dig through the stats, here they are summerised.

If you’re not a fan of stats the TL;DR is that yes through manipulation, necessity or pragmatism the government has been shifting the way many institutions are funded from statutory to anything else.

My feeling it’s that is a self fulfilling prophecy, cuts are made, charities fill the void. At the moment it feels to me a bit like PFI, except as there’s no profit to be made from say, the homeless VS a large infrastructure project, it’s the public who foot the bill.

So, what did Claude have to say?

Since 2010, the UK has seen a huge shake-up in how public services are funded. With £110 billion slashed from government budgets, many schools, hospitals, and councils are now relying on charitable donations to keep going. The charity sector has exploded—doubling in size to £96 billion a year—as more public services hire professional fundraisers to fill the gap left by austerity.

This isn't just a budget tweak—it’s a massive rewrite of Britain’s social contract. Charities now provide £14 billion worth of public services each year. Schools are running major fundraising campaigns, and over 230 NHS charities are contributing £1.2 million every single day to keep healthcare going. COVID-19 only sped things up, showing just how willing the public is to help—and how much help is needed when government funding falls short.

But while this opens doors for fundraising experts, it also raises some tough questions. Who gets left behind when some schools or hospitals can't fundraise as well as others? And what happens when postcode or personal networks decide who gets better services?

Austerity Sparked the Fundraising Boom

The spending cuts since 2010 have been some of the harshest since WWII. Even sectors like education and health—claimed to be “protected”—faced tough times and were pushed to look elsewhere for money.

Education took one of the biggest hits. Between 2009 and 2019, schools lost 8-9% in per-pupil spending, and local authority education budgets were slashed by over half. Even by 2024-25, schools are still operating with 3% less than they had in 2010. That shortfall adds up to £1.8 billion a year.

The impact? About 70% of English schools have less real funding than in 2010. One in seven schools is now running a deficit—the highest number since the cuts began. That’s like losing 1 to 4 teachers per school, just to make ends meet.

The NHS didn’t fare much better. Despite a growing population and rising demand, funding barely grew—just 0.1% annually from 2010-2015. The decade saw the lowest funding growth in NHS history. By 2023/24, NHS trusts were £1.2 billion over budget, and investment shortfalls hit £37 billion.

Local councils were hit hardest. Between 2009 and 2016, budgets dropped by over 50%, leading to the closure of 738 libraries, 859 children's centres, and 1,224 subsidised bus routes. Library spending fell by nearly 30%, leaving communities to rely on volunteers and donations to stay afloat.

Charities Step In to Fill the Gaps

As the government pulled back, the charity world stepped up. The sector has doubled in income since 2010, much of it going toward what used to be publicly funded services.

One big change? Government support has shifted from grants to contracts. Between 2021 and 2022, grants fell while contracts jumped 25%. For the first time ever, foundations now give more to charities than the government does.

Charities are now taking on core public services—everything from homelessness support (69% of contracts) to domestic violence services (66%). The sector employs 1.28 million people—30% more than a decade ago—filling the jobs left behind by public cuts.

Donations from the public have grown too, but not without issues. Health charities receive the most (£2.22 billion annually), but fewer people are donating overall. Wealthier donors are giving more, while everyday giving is on the decline, raising concerns about fairness and long-term stability.

Schools Are Getting Serious About Fundraising

Schools have undergone one of the biggest transformations. Professional fundraising is no longer a bonus—it’s becoming a necessity. Just 12 academy trusts raised nearly £20 million in two years, with wide differences based on their ability to network and fundraise.

Top trusts have gone all in. Ark Schools pulled in £6.2 million in one year from hedge funds. Ormiston got £2.7 million from charitable and lottery sources. Some have even hired full-time fundraisers—like the Harris Federation—and raised millions.

Independent schools have been doing this for a while. In two years, 119 schools raised nearly £270 million, with most now seeing heads spend up to a quarter of their time on development work. If a school raised over £500,000, chances are the head was heavily involved.

But this isn’t happening equally. High-performing or selective schools raise much more than others. Some, like London Oratory, raised over £150,000 while schools in less wealthy areas struggle to afford basics like books or sports equipment.

The NHS Turns to Fundraising to Keep Going

Fundraising is no longer a “nice-to-have” for the NHS—it’s a lifeline. With over 230 NHS charities raising £1.2 million a day, charitable support has become essential for modern healthcare.

NHS trusts are hiring full teams for fundraising: philanthropy managers, development directors, and major gift officers—roles paying up to £80,000+ for top talent. These jobs now require serious fundraising experience, especially with wealthy donors.

Big campaigns are also making waves. Cambridge Children’s Hospital is working on a £100 million campaign, already halfway there. Great Ormond Street pulls in around £100 million a year, with support from over 300,000 people worldwide.

NHS charitable funding goes far beyond extras. It helps with everything from MRI machines to ward refurbishments, research, and staff support. And with capital shortfalls piling up, this kind of funding is becoming vital.

COVID Changed Everything—Fast

The pandemic pushed these trends into overdrive. NHS Charities Together raised a record £160 million, with Captain Tom alone raising £39 million. It was proof: the public is willing to fund services they believe in.

Online giving exploded. Platforms more than doubled their donations, and mobile giving took off. More organisations began prioritising data and analytics, seeing big results.

But cracks showed, too. Government support to charities fell from 30% to 26% of their income—the lowest since 2004. After an initial £750 million relief fund, the support faded, with real-terms cuts hitting £1 billion by 2025.

Add in rising costs, more competition for grants, and cuts to international aid—and it’s clear the pressure isn’t going anywhere.

A New Industry: Fundraising Consultants for the Public Sector

All this demand for fundraising has created a booming consultancy sector. Firms now specialise in helping schools and NHS trusts raise serious money. But not all consultants are created equal—finding someone who truly understands your sector is key.

That’s where firms like Fern Talent come in. Instead of doing the fundraising themselves, they help organisations connect with the right specialist—saving time and avoiding costly missteps.

Healthcare-focused consultants have really taken off, offering everything from campaign planning to donor research. Meanwhile, charity sector jobs are booming—especially in fundraising—with salaries up 8.5% and many organisations struggling to hire.

Professional training has grown, too, with more certifications and courses now available for fundraising professionals.

The Bigger Picture: A Divided System

As public services lean more on charitable funding, the system is starting to split. Those with strong fundraising skills thrive. Those without? They fall behind.

Geography plays a big role. Top schools raise way more than struggling ones. Wealthy areas can fund new hospital wings. Poorer areas struggle to keep the lights on.

And this new pressure shifts leadership priorities. School heads now spend huge chunks of time on fundraising. NHS executives are doing the same. That’s time away from teaching and healthcare delivery.

Parents are also feeling the pinch. Many are asked to donate monthly, with some schools even tracking donation levels as a performance metric. Trips, sports, even textbooks are often paid for by families now—widening the gap for lower-income students.

Hiring fundraising consultants or building internal teams isn’t cheap either. Organisations need to weigh the cost against the value it brings.

And when wealthy donors give big, they may expect influence—raising questions about who really shapes public services in this new model.

So, What Now?

The shift from government to charitable funding is one of the biggest changes in UK public services since the welfare state began. With £110 billion cut, schools and NHS trusts have turned to fundraising out of necessity.

Done right, it can bring in millions and strengthen community ties. But it can also deepen inequality and shift focus away from the core mission of public service.

The big question now isn’t should you fundraise—it’s how you do it. And if you’re feeling overwhelmed by the options, that’s where expert advice can make all the difference.

Firms like Fern Talent are here to help. Whether you’re just starting out or looking to expand, they can connect you with the right people to plan smart, raise more, and stay focused on what really matters.

Looking for advice from a fundraising consultant, let me know and I’ll find you someone with the experience you need to make an informed decision with no obligation to use any of our services.

If you have a vacancy you’d like us to take a look at just let me know, we can arrange a chat to find out what your priorites are and we can get a proposal over. We work to a flat fee so you know what to expect from the outset,

Call me (Tim) on: 07480877734