A record £478 million was distributed to good causes by the Charities Aid Foundation (CAF) in the past year, latest figures reveal.

The CAF Annual Report shows in 2014/15 the total amount of money distributed to good causes on behalf of CAF’s donors was up £35 million on 2013/14.

Of the record sum philanthropists made up £156m of it.

Holders of CAF Charity Accounts – which can be opened by anyone who wants to better organise their giving - gave £100m to charities.

Around £70m was donated by employees of more than 3,000 firms through their payroll as part of Give As You Earn and corporate donations from companies working with CAF reached just under £82m.

It has never been more important to encourage people to give and to maximise the impact of their generosity

The report also details the growing levels of support that CAF has been able to provide to charities in the past 12 months.

CAF Bank lent £20m to charities and its social investment arm Venturesome supported another 23 social enterprises and not-for-profit organisations seen as too high-risk by high street banks.

CAF chief executive John Low said: “CAF exists to encourage people to give and to support the important work of charities.

“The hundreds of millions of pounds which we have been able to distribute to good causes over the last year will provide a lifeline for vital work being undertaken by charities in the UK and further afield, from medical research, reaching out to vulnerable people and building new homes to supporting the arts, culture and sport, as well as caring for animals in need.

“Charities have not escaped the consequences of global economic conditions, and as a result have had a difficult few years during which demand for their services has risen steeply.

"It has never been more important to encourage people to give and to maximise the impact of their generosity.”