U.K. charities' income has fallen 16.5% annually since 1997 because of the government's elimination of the advance corporate tax credit as well as poor financial markets, according to Investec Asset Management. Officials at British charities must decide if they will maintain spending or spend less to survive economically over the long term, according to Investec, which has been examining the sector over the past five years. One possible route for charities is to move money out of capital and add it to the income flows, said John Hildebrand, portfolio manager. U.K. charities may opt to move more money into bonds as they examine what risks exist for the different strategies, he added.
U.K. charities have about £60 billion ($110 billion) in total assets.