Charitable giving by FTSE 100 companies drops by 26% in a decade

CAF report reveals FTSE 100 companies donated £1.85 billion to charity in 2022.
A quarter of top UK-listed companies donated at least 1% of pre-tax profits.
GSK is the most generous, donating more than 5% of profits, while energy giant Shell gave 0.28% last year, six and half times less than they did in 2016.

New research by the Charities Aid Foundation (CAF) suggests that the UK’s largest listed companies have cut back on their giving to charities. This year’s Corporate giving by the FTSE 100 report shows that companies gave £1.85 billion to charities last year, significantly less than the £2.51 billion they gave a decade ago. Considering increases in inflation during this period, this represents an even more dramatic cut to crucial charitable funding in real terms.

The report shows that the total amount donated in 2022 is the same as in 2016 -when the analysis was last carried out- while the combined profits of the FTSE 100 have trebled over the same period. The number of companies donating the sum equivalent to at least 1% of their pre-tax profits has also stayed roughly constant; 24 companies gave 1% or more last year, compared to 26 in 2016.

Having endured a pandemic, the cost-of-living crisis and energy crisis, as well as rising inflation, charities providing support to communities may have missed out on vital funding. If the companies in the FTSE 100 had continued to donate the same proportion of pre-tax profits that they did in 2016, the charity sector would have received an additional £3.74 billion of funding.

There is clear demand from consumers and employees for action. More than two-thirds (69%) of the public believe businesses have an obligation to support the local communities in which they operate and 70% believe businesses should be more open and transparent about their charitable donations. Yet since 2013, businesses have not been compelled to report on their community investment and philanthropy in company annual reports.

Neil Heslop OBE, Chief Executive of the Charities Aid Foundation commented:

“The role of FTSE 100 businesses in leading a purposeful corporate culture is vital. It is brilliant that a quarter of the UK’s top hundred listed companies are setting an example by committing to the best practice of donating at least 1% to good causes. But more can and should be done, especially now as household incomes are squeezed and charity finances are strained due to the cost-of-living crisis.

A resilient civil society requires charities, the private sector and government to all play a role. That is why we urgently need the Government to draw up a national strategy on philanthropy and charitable giving to mobilise effort by businesses and all of us.”

Findings

The fourth edition of the CAF Corporate Giving by the FTSE 100 report looks at giving in 2022. It is the first report since 2018, which analysed 2016 data. It is based on details of community investment and general philanthropy recorded in annual reports and in ESG (Environmental Social and Governance) reports. For the first time, companies were surveyed by CAF about their giving and asked to expand on details contained in company reports.

This report is based on the framework provided by Business For Societal Impact (B4SI). Most companies in the FTSE 100 are familiar with this framework and many publish data in alignment to it. The report looks at support given globally to charities and community causes by FTSE 100 companies in the form of voluntary cash and in-kind donations, matched employee funding, employee volunteering and the management costs incurred from supporting community initiatives. It does not include family foundations, which may receive income from share dividends.

Corporate giving by FTSE 100 - ranked by proportion of pre-tax profits donated

Top 20

Rank	Name of company	Industry	Charity as % of pre-tax profits
1	GSK	Healthcare	5.47
2	Endeavour Mining	Basic Materials	4.91
3	AstraZeneca	Healthcare	4.55
4	J Sainsbury	Consumer Staples	4.50
5	Tesco	Consumer Staples	4.39
6	Hiscox Financials	Financials	4.03
7	St James's Place	Financials	3.71
8	Fresnillo	Basic Materials	3.54
9	WPP	Consumer Discretionary	3.06
10	Whitbread	Consumer Discretionary	2.92
11	Coca-Cola HBC	Consumer Staples	2.79
12	Convatec Group	Healthcare	2.44
13	Antofagasta	Basic Materials	2.24
14	Smith & Nephew	Healthcare	2.20
15	RS Group	Industrials	2.12
16	Severn Trent	Utilities	2.04
17	Anglo American	Basic Materials	1.85
18	Informa	Consumer Discretionary	1.72
19	Intl Consolidated Airlines Group	Consumer Discretionary	1.32
20	Vodafone Group Telecommunications	Telecommunications	1.20

Bottom 20

Rank	Name of company	Industry	Charity as % of pre-tax profits
64	Beazley	Financials	0.25
65	CRH	Industrials	0.21
66	British Land Co	Real Estate	0.20
67	Airtel Africa	Telecommunications	0.18
68	Persimmon	Consumer Discretionary	0.14
69	Halma	Industrials	0.14
70	Admiral Group	Financials	0.13
71	Auto Trader Group	Technology	0.12
72	Taylor Wimpey	Consumer Discretionary	0.11
73	Haleon	Healthcare	0.11
74	Ashtead Group	Industrials	0.10
75	Hargreaves Lansdown	Financials	0.10
76	Rightmove	Real Estate	0.10
77	JD Sports Fashion	Consumer Discretionary	0.09
78	Legal & General	Financials	0.08
79	B&M European Value Retail	Consumer Discretionary	0.07
80	3i Group	Financials	0.04
81	BT Group	Telecommunications	0.02
82	Associated British Foods	Consumer Staples	0.00
83	Pershing Square Holdings	Financials	0.00

*Data from 2022. These rankings exclude the seven companies for which we could not identify donations in their annual reports and the 10 companies which made pre-tax losses in 2022.

Read the full report

About Charities Aid Foundation (CAF)

CAF is a leading UK charity, which helps people and businesses support the causes they care about by providing giving infrastructure and expert advice, and for charities, provides simple and straightforward day-to-day banking and fundraising services, freeing them up to concentrate on the real work of making a difference. We understand and influence the wider environment for charities and civil society across the UK and beyond via our research, policy and campaigns work.

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