# Who manages charities’ money?

- Link: https://fundraising.co.uk/2003/06/15/who-manages-charities039-money/
- Published: 2003-06-15T23:00:00+01:00
- Author: Howard Lake

**Which investment managers handle the lion’s share of top charities’ investments?
Which auditors have most clients among the top 500 charities? Which law firms dominate
the charity sector? New research from Charities Aid Foundation (CAF) details who
manages charities’ money.**

Investment companies Deutsche Asset Management and Merrill Lynch manage the majority
of the UK’s top charities’ investments, according to new research from Charities
Aid Foundation (CAF).

The research, entitled “Who manages the money?”, presents detailed figures on the
use of financial auditors and investment managers, including their comparative market
share and fees, by the top 500 fundraising charities and the top 500 grantmaking
trusts. Based on figures for 2001 – 02, the research also outlines the use of solicitors
and their client numbers.

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Ninety six investment managers handle over £31 billion on behalf of both the largest
trusts and fundraisers. Merrill Lynch Investment Managers was top of the table with
12% of the client market and managing over one third of the total value of charity
investments. However, with just 2% of sector clients, Deutsche Asset Management 
secured 9% of the market value, a highly valuable portfolio with an average charity
client fund of £206 million.

Comparing the use of auditors between fundraising charities and grantmaking trusts,
Deloitte & Touche emerges as the first choice for the top 500 fundraising charities,
with the highest number of audits (23%) and total income audited (17%). For the 
top 500 grantmaking trusts, however, PricewaterhouseCoopers LLP headed the table
with 19% of audits and 31% of the total income audited. Interestingly, the research
showed that the average fee per audit was £11,168 for grantmakers compared with 
£26,223 for fundraisers.

Based on combined responses from both grantmaking trusts and fundraising charities,
the research shows that a small number of law firms dominate the top charity market.
Bates, Wells & Braithwaite are a clear front runner with 15% of the total surveyed,
followed by Farrer & Co with 10%, Withers LLP and Bircham DysonBell with 8% and 
Nabarro Nathanson with 7%.

“Who manages the money?” forms part of **Charity Trends 24th edition**, the most
comprehensive analysis of the resources and expenditure of the UK’s voluntary sector.
To be published later this month, Charity Trends is available at the pre-publication
price of £129.00 for the book or £179.00 for the CD Rom. Copies can be ordered from
CaritasData.
 

 * **[Charity Trends lists UK’s most popular charities](https://fundraising.co.uk/2003/06/18/charity-trends-lists-uk039s-most-popular-charities/)(
   18 June 2003)
 * **[Year of ‘strong growth’ for the sector says Charity Trends](https://fundraising.co.uk/2007/07/16/year-e%cb%9cstrong-growth039-sector-says-charity-trends/)(
   16 July 2007)
 * **[New Charity Trends uncovered by Charities Aid Foundation](https://fundraising.co.uk/2003/06/26/new-charity-trends-uncovered-caf/)(
   26 June 2003)**