Company heads say businesses should do more for charities and communities

Board7 December 2009

Businesses may be set to give more support to charities and communities according to a new survey by the Charities Aid Foundation (CAF a registered charity) with 100 heads of medium and large companies. The majority (82%) agree that companies should do more for charities and communities and 77% of those surveyed think that community investment is an area of increasing importance for industry as a whole.

All those surveyed run companies that operate a community investment programme and despite a feeling that they should do more the vast majority (91%) said that current corporate contribution to society is undervalued by the public.

Russell Prior, Executive Director of Enterprise and Philanthropy Development at the Charities Aid Foundation, said: “Such strong support from the top means there is a great opportunity to increase community investment. Business leaders are telling us that they see community activities as core to their companies. Nearly two-thirds (60%) of them said that genuinely sustainable business is only viable with a strong CI programme and 82% are motivated to have a CI programme because they see it as good business practice.”

Nearly two-thirds (62%) of respondents said that government has a role to play in encouraging companies to increase their community investment. Only one fifth think government is doing enough. Most (88%) felt that increasing tax relief on donations would encourage companies to give more and 70% would support the government introducing a universal payroll giving scheme.

Russell Prior said: “Giving through your payroll with a scheme like Give As You Earn is one of the easiest and tax effective ways to give but only 44% of PAYE employees have access to it. It is easy to set up a payroll giving scheme for employees and if it were mandatory for employers to offer it in the same way as a stakeholder pension millions more would go to charity and wouldn’t necessarily mean donors giving more. When a basic rate taxpayer gives £10 in this way it only costs them £8.”

When asked what CSR professionals could do to develop community investment, engaging employees more effectively and focusing on local communities rather than national ones were seen as key. Half agreed that in the future CI will be increasingly driven by concerns about climate change.


Notes to Editors:

  • research carried out for the Charities Aid Foundation by GfK with 100 CEOs, MDs, COOs, and Presidents of companies with no less than 500 employees. Companies spanned industries including finance, retail, communications, manufacturing, professional and legal services, utilities, construction and property, pharmaceutical, manufacturing and transportation. Research was conducted between 5th and 12th November 2009.
  • the Charities Aid Foundation is a charity set up to help other charities by working with donors, companies and charities to encourage and facilitate a culture of giving. They do this by offering products and services that make giving easier, tax efficient and help charities to make the most of donations through their banking and fundraising support services.

Media contact

George Leigh
Press Officer
T: 03000 123 272
M: 0796 018 2471
E: gleigh@cafonline.org