Almost a quarter of all charitable giving in England and Wales is received by faith-based charities, according to a new report released today by think tank New Philanthropy Capital (NPC).

Almost half of all overseas aid and human rights charities are religious in nature, with 49 per cent of aid charities and 45 per cent of human rights charities citing a religious foundation.

The new report, entitled Faith Matters: Understanding the size, income and focus of faith-based charities, released by NPC today, is a comprehensive analysis of the role of faith-based charities, both in terms of income and areas they work in. 

Christian charities in England and Wales have a combined annual income of £11 billion, which makes up 67 per cent of income for all religious charities (£16.3 billion).

"Faith charities clearly have a vital role in the voluntary sector," said Rachel Wharton, Policy and Development Officer at NPC and one of the authors of the report.

"They raise and spend billions of pounds a year to help millions of people, from international poverty work to food banks looking after people in the local community."

The report found that 60 per cent of all faith-based charities working in overseas aid are Christian, followed by generally faith-based charities with 24 per cent and Muslim charities at 10 per cent.

Similarly, Christian charities lead the way in working in human rights, with 43 per cent of all faith-based charities working in this area being Christian.

"There are a number of different possible explanations as to why faith-based charities receive the most income," Wharton told Christian Today. "Charities connected to churches have congregations ready to give and there is research to show that people of faith often give more. It is hugely important in many religions to give."