75% of UK businesses did nothing to support charities last year, report finds

Three quarters of British businesses did nothing to support charities last year, according to an annual report.

The Charities Aid Foundation (CAF), which helps people or organisations give more effectively to charitable causes, said just 25% of UK firms donated to charities in the form of time, cash or goods last year.

The CAF says firms should commit to donating at least 1% of pre-tax profits each year as best practice, and that charities would receive almost £5 billion in additional funding if they did so.

In its annual Corporate Giving report released on Thursday, the organisation said British businesses donated an estimated £4.2 billion in 2024, with nearly half donated by FTSE 100 companies.

This marked a similar amount donated the year before in 2023, according to the research.

But this year’s report found that only 24 of the FTSE 100 gave at least 1% of their pre-tax profits to charity last year, down from 28 in the previous year.

It also found a decline in the amount of cash donations given by firms, with an estimated £300 million less given away last year compared to 2023.

This was somewhat offset by a rise in donations of goods – such as medical equipment or food – by an estimated value of £180 million last year.

While in-kind donations are a crucial component of corporate charitable giving, cash allows charities to run effectively, grow and innovate, CAF said, as it highlighted the need for companies to understand the value of cash to charity development and to strike the right balance across different forms of giving.

Neil Heslop, CAF chief executive, said: “Corporate giving is not an optional extra.

“It is a cornerstone of responsible business that employees and customers expect.

“Yet, at a time when charities continue to face severe funding challenges, our research reveals that most British businesses are disengaged from meaningful community investment.

“Across the country, there are great examples of businesses working hand-in-hand with charities in local areas, and demonstrating that sustained, purposeful giving is certainly achievable.”

The CAF is also calling for the Government to reintroduce requirements for companies to publicly share their corporate giving as a way to improve transparency and motivate firms to support causes.

Mr Heslop said ministers have “a crucial role to play in fostering a renewed culture of giving and encouraging community investment from businesses to the places and communities they are a part of”.

Elsewhere, the CAF said if donations had kept up with inflation, charities would have received £185 million more in 2024.

Regionally, businesses in the North East of England are the most likely to donate at 41%.

On the other hand, those in the South East are least likely to do so – at 12%.

A government spokesperson said: “The Government is determined to create a more supportive environment for philanthropy, including encouraging corporate giving.

“Removing barriers and unlocking potential is a cornerstone of our Plan for Change – we will work closely with the philanthropic sector and private business so we can continue to grow philanthropy across the UK.”