The UK’s largest listed companies are giving less to charities today than they did in 2009 in the wake of the global financial crisis, according to a new report.
The Charities Aid Foundation’s (CAF) annual Corporate Giving Report analyses the charitable giving of the 100 largest UK companies listed on the London Stock Exchange. Following the global financial crisis, giving by FTSE 100 companies equated to 1.7% of pre-tax profits (£1.84bn). This compares with just 0.8% most recently (£1.69bn). Combined profits have almost doubled since 2009.
Inflation has exacerbated the decline further. To have kept up with inflation since 2009, donations would need to be 76% higher than current levels. Since 2022 when inflation peaked, it is estimated that charities have lost out on around £4 billion in real terms.
CAF, which helps businesses and individuals give more impactfully, found that most companies in the wider businesses community do not give, despite employees and consumers wanting them to do more.
Only a quarter (27%) of UK businesses support charities in any way, with just 17% giving cash. However, two thirds of employees say they would like their employer to give to charity, and three quarters of consumers feel more favourable to businesses they can see doing good in their local areas.
For businesses that do not give, only 18% said the main reason was because they did not have enough budget, while more than half (57%) said they had not considered it or do not see the benefit.
Mark Greer, Managing Director of the Charities Aid Foundation, said: “In 2009, when businesses were navigating a global financial crisis, they continued to give generously. Today it seems too many organisations, including many of the largest companies, are reducing budgets, withholding data or failing to recognise the role business can play in supporting society.
“When leaders put giving on the agenda, it becomes part of business strategy, culture and long-term planning, rather than something considered only when circumstances allow.
“The opportunity is substantial. Had every FTSE 100 company met best practice and donated 1% of profits last year, charities would have received around £1 billion more in funding, contributing to a stronger society that benefits businesses and the people in them.
“Government has its role in shaping a stronger culture of giving. But at a time when charities are experiencing declining donations and rising demand, it has never been more important for business leaders to step up and play their part.”