In a speech last week, Culture Secretary Lucy Fraser said that in order for philanthropists and would-be philanthropists to know that their giving is recognized and celebrated, they need to “change their collective attitudes” to how they think about earning and giving. He said that a “transformation” was necessary.
The Culture Secretary was speaking at the launch of Onward’s Giving Back Better: Unlocking the possible of philanthropy in UK Report, which found that too few wealthy people are involved in philanthropy, The contribution rate for the top 10% of income earners is half. The poorest 10% of people. The group claims that if wealthy Britons were as generous as the lowest income earners, it would mean an extra £3.4bn a year for UK charities.
Mr Fraser said in his speech that as a nation: “Sometimes we don’t like to talk about earning and giving.” and often criticize successful and giving people. Instead, she said, we need to do that. “Don’t be shy.” Advocate for charity.
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Ms Fraser’s aim is a “revamped” government focus that enables, encourages and recognizes philanthropy, she said. She explained that she focuses on her three main areas: “Streamlining Gift Aid. Working with the FCA and HMT to explore the potential for greater philanthropy training. Facilitate and support giving to stronger communities and partnerships.“
The “Giving Back Better” report, written by Shivani H. Menon, a senior researcher at Onward, found that not only did the richest people donate half as much as the poorest people, They say too few wealthy individuals are participating. Of the donations from the top 1% of households, half came from less than 5% of her in the group.
The report also states that donors are giving to a limited number of locations within the UK. Donations made through Gift Aid are four times higher in London compared to the UK average, with more than a third of all grants from the largest charitable foundations being donated to London.
Looking at Gift Aid, the report says: “Complex and underutilized”, nearly one-third of all donors find the system too complex to use. This means that charities lose up to £564m in donations each year to unclaimed Gift Aid, while almost two-thirds of wealthy donors do not claim Gift Aid relief. Masu.
They also say social and cultural incentives for giving are weak, few people talk about giving, and philanthropists are often portrayed negatively in the media.
Report recommendations
The report recommends a series of steps. First, to increase the flow of funds to charities:
- Gift Aid needs to be automated to make it simpler and easier to use
- Financial Conduct Authority should make charity a mandatory part of wealth adviser training
- The government should launch a national philanthropy strategy led by a newly appointed philanthropy champion
To ensure funds reach where they can be most useful, we also recommend:
- Government should launch ‘philanthropy zones’ in areas where charity is lacking.
- Local leaders should create a diaspora charity fund to collect donations from successful ‘sons and daughters’ of UK towns and cities
Menon comments in the report:
“Philanthropy is a powerful way for the wealthiest people to give back, funding causes and initiatives that governments and markets often overlook. It’s something we need to encourage, rather than shun.” That’s not true.
“We will unlock the UK’s untapped philanthropic potential by improving tax incentives, reforming wealth advice and strengthening local giving to encourage a new generation of donors. We need to release it.”
About Melanie May
Melanie May has been a journalist and copywriter since 2001, specializing in writing about the philanthropic and marketing services sectors. You can contact her at thepurplepim.com.