Business support for small charities accounts for less than 1% of annual private sector turnover
Melanie May | 11 August 2021 | News
Around 0.06% of private sector turnover goes to small businesses and community groups each year, according to a study.
Research conducted for the Law Family Commission on Civil Society shows that businesses donated services and funds worth an estimated £2.4billion in 2019 to small charities and community groups – equating to around 0.06% of private sector turnover. It means the average business in England contributes just over £450 worth of support to small charities and community groups each year.
This includes £1.9bn in financial donations and around £474million worth of pro bono support such as legal services, in-kind donations such as the use of office space and employee-supported volunteering.
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The study of 4,000 organisations by University of Durham Professor Tony Chapman for the Commission also found that:
- Businesses give most support to charities for children and young people and focus attention mainly on poorer urban areas. Those charities that serve the interests of carers and people with learning difficulties are most likely to say that business supports them well, while those which serve BAME and rural communities are the least likely to be well supported.
- Charities and community groups which received support from business are generally positive about their experiences, with 84% saying businesses trusted them to be well organised and professional.
- Three quarters (73%) of charities and community groups say they struggle with opportunities to meet businesses.
The Law Family Commission on Civil Society is encouraging businesses to seize the opportunities that working with civil society can create. It believes business and civil society can be incentivised to work more closely together, that connections between the two need to be increased, and that partnerships need to be made as effective as possible.
James Timpson, CEO of Timpson and Commissioner of the Law Family Commission on Civil Society, said:
“There are many examples of businesses around the UK that do brilliant work with civil society, whether it be through community outreach programmes, employee-supported volunteering or simply the donation of much-needed funds. But there is no doubt that businesses of all shapes and sizes can and should do more.
“Businesses that put philanthropy at the heart of their outlook not only help civil society, they help themselves too. Showing empathy and kindness as a business will help you become an employer of choice and it will help you make more money because customers prefer to spend with companies that care.
“We have seen the great strides made by business in pursuit of other vital causes, such as sustainability and equal pay. The next great stride that business can take is to commit to a partnership with civil society. Investors may have a key role to play in this, as might transparency measures – as they have on other social issues. No matter how it is achieved, a strong partnership between business and civil society can only help to improve both communities and companies.”
Nicole Sykes, Director of External Affairs at Pro Bono Economics, commented:
“Purpose has become a watchword in every business boardroom in recent years. Customers, investors, shareholders and employees all expect a commitment to social good. But business’ efforts will fall short if they fail to work with civil society.
“This new research shows that the average annual contribution to small charities from businesses in England amounts to little more than a rounding error. The average business in England donates the same amount of cash to small charities each year as they misplace from their petty cash. It’s no wonder high proportions of the public are sceptical of business’ efforts to paint themselves as about more than just profit.
“This represents an ocean of missed opportunities for business to make a meaningful difference in communities around the country. If these opportunities are realised it will only enhance the success of both business and civil society.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.