Article last updated 24 October 2025.
Budget pressures meet charity realities
The Autumn Budget arrives as charities continue to face a “triple squeeze”: rising demand for services, increasing costs and constrained income. Inflation, though easing, still erodes the real value of reserves and future donations. Many organisations are drawing on capital to meet operational needs, underscoring the importance of prudent, long-term financial planning.
For charities with invested assets or endowments, fiscal changes, such as shifts in interest rates, spending priorities or taxation, can directly affect portfolio performance. In this environment, maintaining diversification, liquidity and discipline is key.
Rathbones has supported charitable investors for more than a century, helping trustees navigate changing political and economic cycles with clarity and confidence.
Resilience, not reaction
Budgets can influence sentiment, but successful charities plan beyond the next quarter. Investment decisions made today shape a charity’s capacity to fund its mission for the long-term.
At Rathbones, our approach begins with a simple principle: protect and grow charitable capital over the long term. We work with trustees to design portfolios that balance income needs with future ambitions, while remaining adaptable to policy and market shifts.
For many charities, our recently launched Rathbones Charity Growth & Income Fund offers a straightforward, responsibly managed way to achieve that balance.
Designed specifically for charitable investors, the fund follows a total return approach that aims to deliver both long-term growth and a planned annual distribution. This dual focus helps charities support today’s beneficiaries with greater confidence, without putting tomorrow’s finances at risk.
It provides:
- Confidence in cash flow: a planned annual distribution charities can build budgets around.
- Protection for reserves: an approach that seeks to grow and preserve capital.
- Ease of oversight: a simple, transparent structure to support trustee reporting.
- Responsible investment embedded: ESG considerations and active stewardship are fully integrated into the investment process.
Actively managed by Rathbones’ specialist multi-asset team, the fund blends equities for long-term growth, bonds to provide balance, and diversifiers, including alternatives, to smooth performance across market cycles.
Tailored strategies for diverse missions
No two charities are alike, and neither are their investment needs. The Autumn Budget’s measures will affect organisations differently depending on their income sources, time horizons and risk appetites.
Alongside pooled fund solutions, Rathbones offers bespoke investment management for charities of all sizes, from large endowed foundations to operational charities seeking steady income. Each portfolio is built around the charity’s objectives, spending plans and liquidity requirements, supported by our in-house research and risk oversight.
Sustainability sits at the heart of our investment philosophy. Through our specialist sustainable investment team, Greenbank, we can help charities with more specific ethical requirements or a desire to go further on sustainability.
Supporting trustees beyond investment
We recognise that good governance and informed decision-making are just as vital as investment performance. Rathbones provides ongoing support through Charity Expert Series webinars, trustee training across the UK, and our new Investment Support Hub — a digital resource designed to help boards strengthen their financial resilience.
These initiatives reflect our belief that informed trustees are empowered trustees, and that long-term partnerships, not short-term reactions, create the strongest outcomes for the sector.
Looking beyond the Budget
Whatever the fiscal detail this year, one truth remains constant: strong financial stewardship enables charities to deliver stronger impact. With disciplined investment, diversification and expert guidance, charities can withstand volatility and continue supporting their beneficiaries with confidence.
At Rathbones, we remain committed to helping charities invest well and empower change, combining trusted investment expertise with a deep understanding of the challenges facing the sector.
Find out more
Explore how Rathbones can help your charity invest well and build financial resilience for the years ahead.
Visit our Investment Support Hub.
For more information contact us on 020 7399 0000 or charities@rathbones.com.
Additional information:
The Rathbones Charity Growth & Income Fund is a Charity Authorised Investment Fund (CAIF) managed by Rathbones Asset Management Limited. It follows a total return approach aiming to achieve long-term capital growth of CPI + 4% with a planned annual distribution of 3%.
Charities should consider their risk tolerance and investment horizon before investing.
Rathbones Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: 30 Gresham Street, London EC2V 7QN. Registered in England No. 02376568.