# Charitable giving "down 25% over the last decade", say CAF

- Link: https://fundraising.co.uk/2003/11/13/charitable-giving-quotdown-25-over-last-decadequot-say-caf/
- Published: 2003-11-13T00:00:00+00:00
- Author: Howard Lake

Despite a recent upturn, giving to charity has fallen by 25% as a percentage of 
the gross domestic product (GDP) over the last decade, according to Charities Aid
Foundation (CAF).
Speaking at the CAF annual conference today,

 

Stephen Ainger, Chief Executive, highlighted the funding challenges facing the voluntary
sector.

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Total individual giving declined year on year in the 1990’s and only started

 

to rise with the growth in more professional fundraising, and the introduction of
new tax incentives in 2000. However, giving is still not increasing in line with
the growth in the economy.

 

 

“This is a major issue for charities, which can only be addressed by changing the
culture of giving which includes the need for charities to be much more transparent
about what they do and the impact they have. The

 

current lack of transparency in many areas in the sector is making it harder to 
reverse this long term decline in giving. Greater transparency will lead, we believe,
to increased support for charities from donors and enhanced confidence in us”, said
Ainger.

 

 

Many charities were also failing to take advantage of the tax incentives currently
provided by government. Mr Ainger said: “It is a scandal that only about a third
of voluntary giving is tax effective. We must all seek to ensure that the government’s
tax concessions are fully used.”

 

 

Stephen Ainger also emphasised that the voluntary sector should build on its

 

successes.

 

 

“Receipts in payroll giving, for instance, have grown by 118% since 1999. The government’s
10% supplement has clearly had a positive effect on this figure and the number of
employers offering schemes has doubled from 5,000 to 10,000 over the last five years.
Any plan to end the supplement at this

 

stage would be short-sighted.”

 

 

Mr Ainger noted that public sector funding of voluntary organisations had now reached
40%, with some parts of the charity sector receiving well over 50% of all their 
funds from central and local government.

 

 

“Charities need to examine how this growth in government funding might affect the
behaviour of donors. Once again, transparency is central as it will be important
that donors fully understand why some charities are publicly funded through contracts
to this extent. Also, we need ensure that

 

the initiatives and programmes of charities, which receive substantial government
funding, are not dominated by a government agenda.”

 

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