Whitehall must appoint ‘philanthropy champion’ to unlock £5 billion in extra giving – new report
Howard Lake | 16 June 2022 | News
The UK government must appoint a dedicated ‘Philanthropy Champion’ within Whitehall and launch a service-wide drive to boost collaboration with the sector, according to a report that warns the UK is currently missing out on billions in potential charitable giving.
The Law Family Commission on Civil Society’s latest paper, Seizing the philanthropic prize: The role of the UK government in growing philanthropy, argues that a significant increase in giving, up to an extra £5 billion annually, could be unlocked if the government elevates its strategic partnership with the philanthropy sector.
A missed opportunity in government
The report highlights a startling gap in government resource dedicated to this vital area: currently, only one-third of a single civil servant’s time is dedicated to philanthropy policy, complemented by a small handful of staff managing relevant taxation.
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This minimal commitment, according to the Commission, means the government lacks the “coordination, resource and expertise” necessary to fully leverage the power of national philanthropy.
The Commission’s central recommendation is the immediate appointment of a senior-level ‘Philanthropy Champion.’ This individual would serve as an essential “gateway” between Whitehall and the philanthropy sector, responsible for coordinating action across all government departments on key issues including the measurement, regulation, guidance, and taxation of giving.
Lord Gus O’Donnell, Chair of the Law Family Commission on Civil Society and Pro Bono Economics, stressed the urgency of the situation. “Supporting charities and good causes is central to who we are as a nation and public giving is a significant part of the UK economy, totalling nearly £20 billion each year,” he said. “With this is in mind, the fact we have just one civil servant in government dedicating only a third of their time to philanthropy policy is a real missed opportunity.”
Learning from international leaders
The report underscores the financial case by noting that the UK trails international counterparts such as the US, Canada, and New Zealand in the proportion of wealth given to charity. Generating a similar share of wealth to charity as New Zealand and Canada would inject an extra £5 billion annually into the sector, representing a 10% increase in total charity sector income.
Educate civil servants in philanthropy’s opportunities
To close this gap, the report advocates for a “’leveraging philanthropy’ best practice drive” across the civil service. This initiative would require civil servants, through their basic training, to be educated on the opportunities presented by philanthropy, including innovative financing models such as match-funding. Sector organisations are encouraged to support this drive, for instance, by organising “lunch and learns” to facilitate a direct exchange of perspectives between philanthropists and civil servants.
The US is held up as a global leader in “seizing the philanthropic prize.” The report notes the increasing number of ‘Public-Philanthropic Partnerships,’ which include over 40 dedicated ‘Federal Liaisons’ embedded in government departments and a growing number of local ‘Offices of Strategic Partnership.’ Success stories cited include New York, which has leveraged over $400 million in philanthropic funds, and LA County, which has raised $23.5 million for health and child welfare since mid-2021. The Commission suggests English Metro Mayors could gain valuable insights from these American models.
Benefits across the board
The report clearly lays out the multi-faceted benefits of unlocking the UK’s philanthropic potential, arguing that the public, charities, and government all stand to gain.
For Charities: Greater investment would boost capacity, enhance resilience, and allow the sector to deliver more vital services to communities.
For Government: A strengthened charity sector would better assist the government in delivering on shared objectives, such as raising living standards and empowering communities, and would provide invaluable insights for policy improvement.
The recommendations have garnered broad support from key sector organisations, including the Beacon Collaborative and the Charities Aid Foundation.
Cath Dovey, Co-founder of the Beacon Collaborative, emphasised the shift in modern philanthropy, saying:
“Philanthropy is no longer about benevolence, it is about having an impact on the complex problems that face the next generation. We need a partner in government to help build the infrastructure and incentives that will encourage more people to give and invest to build thriving communities… Government can help to make this happen, but it requires a joined up understanding across Whitehall and Westminster.”
Both the Commission and its supporters stress that the appointment of a Philanthropy Champion is the necessary and vital first step toward ensuring the UK reaches its full charitable potential.
You can download the full report by Nicole Sykes for free from Pro Bono Economics: Seizing the philanthropic prize The role of the UK government in growing philanthropy.
- Law Family Commission on Civil Society launches today (30 November 2020)
- Small and medium sized charities spend over a third of grant income on applications (28 July 2022)
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About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.