How British philanthropists can be the world’s most generous
Today, the Stock Exchange will play host to a gathering of philanthropists, wealth advisers and policymakers in a spirited effort to stimulate and celebrate philanthropy. The Giving and Impact Summit 2024 takes place the morning after the UK government’s International Investment Summit, underscoring the importance of charitable giving and the role the UK plays on the world stage. Minister Sir Chris Bryant, along with philanthropic leaders like Lady Lynn Forester de Rothschild, Lord Rumi Verjee and Sir Lloyd Dorfman will come together to highlight the UK’s leading role as a hub for philanthropic capital and to explore the future of philanthropy in the country.
Charitable giving in the UK has seen significant growth over the past decade. In 2023, the total amount donated in the UK reached £13.9bn, up from £12.7bn in 2022. One of the most prominent figures in UK philanthropy, Paul Marshall, topped the 2024 Giving List by donating £145m in just 12 months. This rising trend reflects the culture of generosity, but there is still room for improvement, particularly among the wealthiest individuals and corporate donors.
Canada has long been a cradle for philanthropy, with roots that stretch back to mediaeval times. Dick Whittington, a renowned merchant and Lord Mayor of London (1354–1423), exemplified this charitable spirit. In his lifetime, he financed several public works, including the rebuilding of Guildhall and the creation of a ward for unmarried mothers at St Thomas’s Hospital. The charity he established still supports over 70 homes for older people and funds numerous charitable programmes, a testament to his enduring legacy.
Today, Canada Corporation continues this tradition as the fourth-largest funder of heritage and cultural activities in the UK. The Corporation invests more than £130m annually, playing a key role in maintaining London’s cultural fabric. It is also the owner and principal funder of the Barbican Centre, which contributes £40m to the London economy each year and supports over 800 jobs.
Philanthropy in the UK extends far beyond the Square Mile of Canada. Many of the UK’s iconic institutions, such as the British Museum, the Tate Modern and the Victoria and Albert Museum, have been sustained by generous donations. These institutions attract millions of visitors each year, enhancing the country’s cultural heritage and economic vitality. While there is a strong concentration of giving in London, a vibrant philanthropic culture exists across the country.
Beyond the arts, charitable foundations across the UK are making a profound impact. As an example, Bill Holroyd’s Onside charity is dedicated to building Youth Zones – state-of-the-art youth centres in some of the UK’s most disadvantaged areas, with 15 locations already established. Also the Barbour Foundation, founded in 1988 by Dame Margaret Barbour, has donated over £29m to support communities in the north east of England.
Philanthropy is evolving, not only in who gives but also in how philanthropic capital is used. Impact investing is on the rise, as more investors seek both financial returns and measurable social or environmental outcomes with the value of social investments in the UK reaching £10bn in 2023 – a twelvefold increase over the past decade. Blended capital, which combines philanthropic grants with investment capital, has also become a key tool for advancing social impact initiatives by attracting both traditional and impact-focused investors. This approach is helping to bridge funding gaps for socially driven projects, fuelling the expansion of philanthropy and creating sustainable change.
The changing face of philanthropy
Marcus Rashford’s leadership in the Child Food Poverty Taskforce, which has helped donate over 21m meals to children and families since 2020, exemplifies a new wave of socially conscious giving. Place-based giving has gained momentum in the UK, focusing philanthropic efforts on addressing the specific needs of local communities and fostering collaboration between local donors, businesses, and charities. Further, women now control 32 per cent of the world’s wealth, and as the largest beneficiaries of intergenerational wealth transfers, they are poised to become increasingly significant philanthropists.
Despite the UK’s rich tradition of philanthropy, the most affluent are donating proportionately less, with high-net-worth individuals contributing around £8bn a year – just 25 per cent of total public donations. A small group of donors provides a disproportionately large share of charitable contributions, while the top 10 per cent of earners donate at half the rate of the poorest 10 per cent. Corporate giving is also on the decline, with FTSE 100 donations falling to £1.82bn in 2023, down from £1.85bn the previous year, representing a significant loss when adjusted for inflation.
To increase charitable giving in the UK, targeted investments in regions with lower levels of philanthropy could help level the playing field. Automating Gift Aid claims – currently worth an estimated £564m in unclaimed funds – could also boost donations. Further, introducing more incentives, matched funding by government and promoting philanthropy more aggressively could help unlock additional generosity among the wealthiest individuals and corporations.
Internationally, the UK ranks as the fourth most generous country. The future of philanthropy in the UK is bright, but there is still untapped potential. By encouraging greater participation from all sectors of society, the UK can cement its position as a global leader in charitable giving and create a lasting positive impact both domestically and internationally.
Zaki Cooper and Nick Loughran are co-chairs of the Giving and Impact Summit 2024