New figures by the Charities Aid Foundation (CAF) say the UK’s wealthiest give less to charity than the average person. The research found that British millionaires donating just 1% could boost the sector by £12 billion.
The Charities Aid Foundation (CAF) said the sum could be raised if each of the UK’s estimated 536,673 millionaires—high-net-worth individuals—donated 1% of their investable assets.
The Charities Aid Foundation (CAF) is a registered UK charity that operates in the United Kingdom, the United States of America, and Canada. It works with companies, private philanthropists, regular donors, fellow foundations, governments, charities, and not-for-profit enterprises to enable them to give more, its purpose is to “accelerate progress in society towards a fair and sustainable future for all.”
In late 2021, CAF was listed by the UK Charity Commission as the country’s fourth-largest charity by income. They serve as regulatory experts to ensure funds reach charities and social enterprises as quickly and safely as possible via its charity validation, which enables effective cross-border giving; CAF also wholly owns CAF Bank, a fully regulated bank that serves over 14,000 UK-based charities and social enterprises.
CAF claims to be known for its independence, expertise, and international reach, leading a global network of like-minded charitable organizations. CAF Group consists of the Charities Aid Foundation and its subsidiaries in the UK, including CAF Bank, CAF America, the CAF American Donor Fund, and CAF Canada.
CAF Group collectively seeks to inspire innovation, share best practices, and improve cross-border giving to support civil society. CAF’s head office is located in Kent, southeast of London, and the charity has a second UK office in central London at St Bride Street, EC4A 4AD.
Charities Aid Foundation: How 1% could be a game changer
Charities Aid Foundation research suggested that the UK’s wealthiest gave the equivalent of 0.4% of their combined investable assets worth £2 trillion, or an estimated £7.96 billion, in 2023. Meanwhile, the wider UK public donated an estimated £13.9 billion to good causes in the same year, equating to 1.6% of their income.
The Charities Aid Foundation (CAF) revealed that the UK’s wealthiest people tend to support “significantly different” causes from those supported by the rest of the public. The UK’s most prevalent cause was animal welfare, with 28% of the general public donating.
The most prevalent cause for wealthy donors was education, supported by six in 10 high-net-worth individuals compared to 4% of the population. Just over a quarter (26%) of millionaires donated to support arts and culture, compared to 3% of the general public.
“The UK has a strong history of philanthropy, which has been behind some of our most important innovations and funds crucial charitable services. But there is cynicism towards philanthropy in the UK, perhaps more so than in other countries,’’ said Edward Garrett from CAF.
According to him, philanthropy has considerable untapped potential to help tackle local, national, and global challenges.
“Donors, particularly among the next generation, are increasingly considering their giving as part of the spectrum of capital they can invest within the broader impact economy. The Government can take steps to harness this and renew Britain’s culture of giving to strengthen civil society for the future, with high-net-worth individuals and professional advisers playing a leading role.’’
Garrett has called on the UK government to take steps to encourage a renewed culture of philanthropy, ensuring that high-net-worth individuals and financial advisors take a leading role in strengthening civil society, just like Vernon Building Society launched a remarkable £100,000 fund for charities in Wirral as part of its Community Stars initiative and newly established Vernon Charitable Foundation.
This milestone coincided with the society’s 100th anniversary celebrations in March 2024, aiming to support charities focused on poverty relief and community development. This stresses that giving back to society is a culture that should be encouraged, and like ripples in a pond, good deeds must continue to spread wide.