Majority of UK Businesses Failed to Aid Charities in Previous Year, According to New Study
The Charities Aid Foundation (CAF) has released its annual Corporate Giving report, highlighting a decrease in cash donations by firms and a call for the Government to reintroduce requirements for companies to publicly share their corporate giving.
According to the report, cash donations by firms decreased by an estimated £300 million last year compared to 2023. This decline comes as a concern, especially considering that if donations had kept up with inflation, charities would have received an additional £185 million in 2024.
Neil Heslop, CAF chief executive, stated that corporate giving is not an optional extra. He emphasised the importance of cash donations for charities, as they allow for effective running, growth, and innovation.
The report also revealed that only 24 of the FTSE 100 companies gave at least 1% of their pre-tax profits to charity last year, down from 28 in the previous year. This is a significant drop, and the CAF is urging British businesses to commit to donating at least 1% of their pre-tax profits to charity each year. If they did, charities would receive an additional £4.8 billion in funding.
However, the report does not provide specific information about which British companies donated at least 1% of their pre-tax profits to charitable organizations in 2024.
In 2024, British businesses donated an estimated £4.2 billion to charities, with nearly half coming from FTSE 100 companies. Despite this, three quarters of British businesses did not support charities last year. Conversely, those in the South East are the least likely to donate, at 12%. Regionally, businesses in the North East of England are the most likely to donate, at 41%.
The Government, in response, has stated that it is determined to create a more supportive environment for philanthropy, including encouraging corporate giving. A government spokesperson stated that the Government is committed to working closely with the philanthropic sector and private business to continue growing philanthropy across the UK.
Mr. Heslop, CAF chief executive, emphasized that ministers have a crucial role to play in fostering a renewed culture of giving and encouraging community investment from businesses. He pointed out that there are great examples of businesses working hand-in-hand with charities in local areas, demonstrating that sustained, purposeful giving is achievable.
Removing barriers and unlocking potential is a cornerstone of the Government's Plan for Change. The CAF's report serves as a reminder that more needs to be done to encourage corporate giving and support the charitable sector in the UK.
