Little sign of Government action to boost charitable giving from companies

The Government’s recently published Giving white paper devotes scant attention to improving charitable giving from Britain’s companies.

The average value of donations from the most generous companies to charity, expressed as a percentage of their pre-tax profits, is only 0.4%* over the past decade.  Overall, companies only provide around 5% of total income for charities and voluntary organisations – far less than the general public or government agencies.

DSC’s Head of Policy Jay Kennedy said:

"Looking at all the sources of support for charities, and company contributions probably have the greatest potential for growth.  For companies that do give, there is plenty of scope to give more and to give better. But the even bigger potential lies in getting those companies that currently give nothing to start."

Kennedy acknowledges that most companies exist to make a profit not to support charity. But he argues that in the modern age, customers, staff and the general public increasingly expect companies to demonstrate social responsibility, and that donating to charity is a widely recognisable way of doing so.

"One way to get companies to do more could be to harness their natural competitive tendencies to drive up their giving. Government could clearly play a role by encouraging companies to give at least 1% of pre-tax profits, and by recognising the most generous, perhaps through the Big Society Awards.  Government could also help ensure that company reporting of giving to charity is more transparent and meaningful."

"However, there’s nothing in the Giving white paper to suggest that even such light-touch measures are on the table, other than a vague statement about 'exploring the idea of a kitemark scheme'.  They talk about reforming Payroll Giving, but that is mainly about donations from staff not the company itself."

"There are a number of good ideas in this paper, but the lack of clear and rigorous commitments around improving company giving is a glaring omission, which the Government needs to address."

Read DSC’s full response to the green paper consultation at:
www.dsc.org.uk/givinggreenpaper

For more information please contact Richard Lee, Directory of Social Change by email or phone (020 7391 4881, 0797 008 7207).

Notes to Editors

• Founded in 1974, the Directory of Social Change (DSC) is a national charity which supports an independent voluntary sector through campaigning, training and publications.  DSC is the largest supplier of information and training to the voluntary sector, and its work helps tens of thousands of organisations every year achieve their aims.  Learn more at www.dsc.org.uk.
• * The 0.4% figure includes the value of ‘in-kind’ donations such as equipment and professional help, and is derived from research undertaken for DSC’s publication, The Guide to UK Company Giving