The Charities Aid Foundation received over £500 million in charity donations last year

Donations paid into the Charities Aid Foundation (CAF) exceeded £500 million for the first time in 2015/16.

The foundation, which distributes donations on behalf of 2,500 businesses and over 250,000 individuals to help support good causes, says it received £524m in donations last year, up from £490m the previous.

Despite the increase in giving the amount of money CAF passed on to the 50,000 plus charities it works with, was down slightly from £479m to £462m.

Bosses at the foundation said the drop was due to it reflecting the “wishes of its donors” but added more than two in three people gave to charitable causes in the past year.

This incredible level of support for good cause is befitting of one of the world’s most generous countries

CAF chief executive John Low said: “This incredible level of support for good cause is befitting of one of the world’s most generous countries.

“Much of these donations are paid out right away to tens of thousands of charities while others build up over time as people and businesses grow their philanthropic funds for the future.

“Thanks to the generosity of CAF customers we have been able to support charities making a real difference to people’s lives, whether its building schools in Uganda, providing desperately needed new affordable housing closer to home or working with retailers to ensure that good causes feel the benefit of the plastic bag levy.”

CAF’s 2015/16 annual trustees’ report showed that among major donors, there was a 10% increase in donations into CAF charitable trust accounts and legacies compared to the previous year. The amount they paid out to charities also rose - from £156m to £164m.

Regular givers donated £104m to their favourite causes through CAF – up £4m on the previous year.

Companies paid £85m into company accounts – up £3m and more than £76 million was donated by employees of more than 2,500 firms through the payroll giving service Give As You Earn.