UK LGBTQ+ Charities Face ‘Hostile Environment’ as Donations Decline, Experts Warn
- FundsForNGOs
- Jan 7
- 2 min read
LGBTQ+ charities in the UK are facing a significantly more “hostile environment,” with experts warning that financial pressures are intensifying amid a global backlash on equalities programmes. Stonewall, the UK’s largest LGBTQ+ charity, reported that corporate donations more than halved in the last financial year, dropping from £348,636 in 2024 to £143,149 in 2025, while overall income fell from £6.9 million to £4.7 million. Cash reserves also declined sharply, leaving the organisation with less than £92,000, down from nearly £1 million the previous year.
Experts attribute this decline to multiple factors, including rising operational costs, growing demand for services, and increasing threats of legal challenges, particularly around trans-inclusive policies. Heather Paterson from the LGBT+ Consortium highlighted research showing that LGBTQ+ organisations in the UK receive just 10p of every £100 given to voluntary and community groups each year, indicating a chronic underfunding of the sector.
The financial squeeze is also linked to international political developments. Donald Trump’s executive orders curbing diversity, equity, and inclusion programmes and freezing foreign aid for LGBTQ+ initiatives have indirectly affected fundraising efforts in the UK. Corporates have reportedly become cautious about funding LGBTQ+ causes, especially those supporting trans rights, amid fears of backlash in a politically charged environment. Large UK firms have reportedly reduced public support for Pride celebrations, reflecting similar trends among US companies.
Stonewall noted that the wider context for LGBTQ+ movements globally has shifted, with a significant reduction in funding, economic pressures due to the cost of living, and a pushback on DEI initiatives affecting donation patterns. While restructuring and cost-cutting measures at the charity are expected to improve financial outcomes in 2025–26, experts stress that struggles are not limited to Stonewall alone. Many smaller grassroots LGBTQ+ organisations are especially vulnerable to legal challenges and funding shortfalls.
Sector leaders highlight that the challenges are compounded by the loss of international funding following Trump’s second presidency, as global businesses reduce donations to maintain relations with the US. Alex Farrow, head of the Kaleidoscope Trust, described the current climate as a “hostile environment” that is worse than five years ago, with anti-rights movements emboldened and well-funded, threatening the stability and sustainability of LGBTQ+ organisations across the UK.
The broader picture indicates that LGBTQ+ charities are adapting to shrinking budgets and increasing political opposition, often relying on more voluntary work while facing the dual pressures of societal pushback and global funding shortfalls. Experts warn that without significant support, these organisations risk further financial strain, which could undermine critical services for marginalized communities in the UK.
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