# Business support for small charities accounts for less than 1% of annual private sector turnover

- Link: https://fundraising.co.uk/2021/08/11/business-support-for-small-charities-accounts-for-less-than-1-of-annual-private-sector-turnover/
- Published: 2021-08-11T09:16:07+01:00
- Author: Melanie May

**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](https://civilsocietycommission.org/)
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](https://www.probonoeconomics.com/),
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.”

 * **[62% of small charities report rise in demand over last 3 months](https://fundraising.co.uk/2021/08/25/62-of-small-charities-report-rise-in-demand-over-last-3-months/)**(
   25 August 2021)
 * **[“Speed-dating” funding platform launches to link small nonprofits with local businesses](https://fundraising.co.uk/2021/10/04/speed-dating-funding-platform-launches-to-link-small-nonprofits-with-local-businesses/)**(
   4 October 2021)
 * **[Community organisations pioneered new ways of working during pandemic](https://fundraising.co.uk/2021/12/14/community-organisations-pioneered-new-ways-of-working-during-pandemic/)**(
   14 December 2021)
