The Financial Times reports that a new study will show the public sector to be the biggest contributor towards charities.

A report by the National Council for Voluntary Organisations will tomorrow show that 37 per cent of charities' annual income came from the government in 2001-2, compared to just 4.3 per cent from the business sector.

"Larger charities are growing at a much faster rate than the smaller ones - the bigger ones are picking up large contracts," said NCVO chief executive Stuart Etherington.