Wealthy people in Britain could give £2.8bn more to charity a year, research suggests
Melanie May | 29 August 2024 | News
Wealthy people in the Britain could give an estimated £2.8 billion more to charity each year, according to new research from Pro Bono Economics, with health charities and children’s organisations likely to benefit the most if this happens.
Focusing on people with assets of £100,000 or more when their main residence is excluded, the analysis identifies 5.8 million ‘wealthy’ individuals in Great Britain. 86% of these give to charity.
However, survey data compiled by Opinium on behalf of Pro Bono Economics (PBE) shows that more than half (56%) of wealthy donors believe they could give more than they do presently. 1 in 6 say they could double their donations.
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A role for financial advisers
The new research from PBE also highlights the role financial advisers can take in supporting those who would like to give more. Previous work has found that raising the prospect of charitable giving within a financial advice conversation increases subsequent donations by an average of 40%. But, while around half of the nation’s wealthy access financial advice in some form or other, PBE says only 8% receive guidance on their giving strategy.
PBE estimates that extending philanthropic advice to all those wealthy people who already engage with a financial adviser could generate up to £1.1 billion a year more for the nation’s charities by encouraging more people to give and by increasing the average value of donations.
To unlock this, It says the first step is to train all financial advisers to better understand philanthropy and how to support their clients with giving to charity. It recommends that the government mandates philanthropy training as part of the ongoing CPD of financial advisers.
Nicole Sykes, Director of Research, Policy and Communications at Pro Bono Economics, said:
“The Prime Minister’s warnings over the government’s fiscal situation this week highlight the importance of exploring every possible option to release money that can do good. At a time when charities are held back from helping everyone who needs them by the income they can raise, steps to boost philanthropy are critical.
“Government should seize the opportunity to empower wealthy people to give more and give better, with the support of the financial advice sector. A simple change to educate all financial advisers in supporting their wealthy clients with philanthropy could unlock significant funds, while costing the Treasury very little. Much of the money this would generate would go to support essential causes, with charities providing support to young people and tackling health issues like cancer and heart disease set to benefit the most.
“The UK is naturally a generous nation, which is why almost all wealthy people already donate. Ensuring all financial advisers know how to talk to their clients about their giving is a simple and common sense first step to encourage the wealthiest to give more.”
Elizabeth Steinhart, Philanthropy Adviser at LCM Family Ltd, said:
“Many of the wealthy people I work with are incredibly generous and want to make a difference to people’s lives, but they need help to do it effectively and efficiently and importantly in a timely manner.
“Philanthropy is about more than making big donations. Increasingly wealthy clients want to engage with the causes they care about and want to lean in – to give time, in kind support, expertise when useful and to become a trusted ‘friend’ and advocate for the charities and social enterprises they give to. This creates long term partnerships that look more like an angel investment rather than old style ‘cheque book giving’ at the golf club dinner once a year.
“To be the best possible donors to charities, wealthy people need philanthropy advisors to turn to. Philanthropy advisers can offer clients access to the whole of the charitable playing field through their sophisticated networks, can make independent introductions, undertake research, due diligence, strategic planning and facilitate gifting that achieves maximum impact for the causes that need their support the most.”
A separate report released this week by Remember A Charity on the high value legacy giving market and its scope for growth, explores the role that wealth advisers can play in growing high value legacy giving in the UK.
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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.