Britain's hard-pressed small charities could benefit from a
goldmine of up to £11 billion, according to a major new report
urging ministers to take urgent action to release badly needed
funds.
The analysis by the Centre for Social Justice has uncovered
almost £4 billion in dormant funds and assets and unclaimed gift
aid that could be used to enhance the vital work done by
grassroots voluntary groups, and then match funded by willing and
generous philanthropists.
The CSJ cites extensive research showing that matched donations
are, on average, two and a half times higher than unmatched
donations, suggesting that the boost to the voluntary sector
could be much bigger than the sum initially identified.
By putting most of the assets, around £3.2 billion, into new
matched funding initiatives for small charities, the think-tank
believes this could release an additional £8.22 billion of
philanthropic giving in the UK because of the clear appetite from
wealthy donors for the Government to play its part too.
However, the report “Supercharging Philanthropy” warns
that without clear leadership philanthropy is at risk of tailing
off. Last year, non-government grants to charities fell by
almost two-thirds, from nearly 100,000 in 2023 to barely more
than 31,000.
Alongside this, corporate giving from companies in the FTSE100
has dropped leaving an estimated £164 million in lost charitable
contributions.
The CSJ report says: “There is money out there if only the
Government will articulate an exciting vision of what can be
achieved, be clear it will be used to good effect, and create the
conditions to find it.
“The Government should start with a National Strategy but not one
that just stays with theory and principles, but an ambitious
direction that sets numerical targets for giving and galvanises
philanthropists to back projects that support the five national
missions.”
It calls on ministers to adopt a “think philanthropy approach”
that requires all funding submissions to the Treasury to “show
evidence of seeking philanthropic partners for suitable
projects”.
More than 20 of the UK's most prominent philanthropists,
including Jonathan Ruffer DL, Lady Edwina Grosvenor, Andrew Law,
Dr Nik Kotecha OBE and Steve Rigby, have welcomed the
recommendations. In their foreword to the report they
say:
“We stand ready to respond to the direction set by Government to
unleash a new wave of philanthropic giving across the UK.
“Philanthropy has an important part to play in the next chapter
of this country. Firstly, to put additional resource to shift the
dial on key national missions and secondly to enable small and
medium sized charities to get the support and stability they need
to continue their work of community transformation.
“If the Government provides clear vision, leadership and
certainty, we will respond with generosity, creativity and
innovation…If Government build the solid banks of the river, we
will work together to make the water flow.”
The report comes as millionaires continue to flee the UK. Last
year, nearly 11,000 millionaires left the UK for more hospitable
nations. Only China drove more wealth away from its shores in
2024.
The CSJ are clear that this is grim news for voluntary bodies,
saying that “although average donations have grown, charities are
increasingly dependent on a pool of regular high net worth
individuals.
It warns that “many foundations and grant givers have paused
giving or are spending down their endowments” alongside this
migration of potential charitable donors.
In particular, the report points to OBR analysis that suggests
“between 12 and 25 per cent of non-UK domiciled individuals
(non-doms) may leave the country”. The CSJ points to analysis
that warns that these individuals give an average of £5.8 million
to good causes, leaving a dramatic shortfall in the potential
revenue for charities.
The research is drawn from conversations with over 200 givers
across the country, representing a combined giving power of over
£1.6 billion.
The CSJ's recommendations include that the Government:
- Commit £3.27 billion of match funding into a National Mission
Innovation Fund launching the National Philanthropy Strategy
- Create an independent National Philanthropy Champion and 12
Regional Philanthropy Champions tasked with meeting financial
targets of philanthropic giving across each region of the UK and
ensuring small and medium sized charities get their fair share.
- Improve uptake of payroll and legacy giving and simplify and
automate gift aid.
, Managing Director of the
Centre for Social Justice Foundation, said:
“There is an untapped jackpot for charities just waiting for
government to unlock. We know that matched donations can provide
a huge boost to funding opportunities and create massive benefits
for charities. At the same time, the exodus of the wealthy
is only going to hurt small charities the most.
“At the CSJF we have helped to direct over £14 million to
frontline charities in our first three years, through advising
private donors and administering trusts and foundations. We know
the generosity is out there if the Government will only set clear
direction and ambition.
“These charities are already suffering worst from an overall
reduction in charitable donations. Government must do its utmost
to help those on the frontlines of the fight against
poverty.”
Neil Heslop OBE, Chief Executive of the Charities Aid Foundation,
said:
“The CSJ's extensive research rightly stresses that now is the
time for Government to set a bold vision for philanthropy. In
every part of the country, charities are at the heart of our
communities, binding us together as a society. Philanthropy and
social investment are what allows charities and social purpose
organisations to get on with that job. But opportunities are
missed to co-ordinate, incentivise and maximise charitable
funding, and fewer people are engaging in giving.
“The CSJ joins with CAF and others in the sector to call for a
government-led national strategy for philanthropy and charitable
giving. Taking steps to unlock funds, harness place-based
networks and revitalise our culture of giving will contribute to
building a more connected, more generous and more resilient
society.”
Baroness , former Secretary of State at
the Department of Digital, Culture, Media and Sport (DCMS)
said:
“The philanthropists I meet are ready to give, and small
charities across the UK are raring to put their money to good
use. I hope the Government reads this report and articulates a
clear vision to inspire more giving."
ENDS
Click here to read the report
in full.
Notes to editors
The list of philanthropists backing Supporting
Philanthropy includes:
Mark Adlestone OBE
Rahul Moodgal
Keith and Tania Black
Leo Noé
Tony Bury
Paul Donovan
Sir David Harrison KGCN, DUniv, MBA
Duncan Grant
Grant Gordon OBE
Lady Edwina Grosvenor
Matt Hyde, CEO, Lloyds Bank Foundation
Dr Nik Kotecha OBE
Christopher Nieper OBE
Chris and Jane Oglesby
James Reed CBE, Chairman of Big Give Trust
Steve Rigby
John Roberts
Stuart Roden
Jonathan DL and Jane Ruffer
Sir Brian Souter
John Spiers
Andrew Law
Sir Peter Vardy DL
Brian Linden
Andy Wates
Sir Harvey McGrath
Dr Iain MacRitchie
Steve Morgan CBE
