Smiths group foundation: Engineering social impact
Discover how the Smiths Group Foundation partnered with CAF to create a strategic global grant programme, supporting employee-nominated charities and helping drive employee engagement.
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If you are considering setting up a corporate foundation for your business, you are not alone. Many responsible companies are exploring how to make their charitable giving more strategic, transparent and impactful. But with so many options − different legal structures, governance requirements and giving platforms – it can be hard to know where to start.
This guide is designed for business leaders and decision-makers who want to understand the practical steps, benefits and alternatives to establishing a corporate foundation in the UK. Whether you are looking to support local communities, address global challenges, or engage your employees in meaningful work, we will help you navigate the process and choose the best approach for your organisation.
A corporate foundation is a dedicated way for your business to manage charitable giving. It helps you ring-fence your giving budget, ensure transparency, comply with charity regulations, and access tax efficiencies – all while strengthening your brand reputation. A foundation can also boost employee engagement, foster collaboration with charity partners, and deliver sustained, measurable impact on the causes you and your stakeholders care about.
According to UK Grantmaking, there are around 160 corporate foundations in the UK, which collectively contributed approximately £1 billion in grants during 2023–24. Some of the largest and most active UK corporate foundations include:
Setting up a corporate foundation signals a long-term commitment to social impact. It shows your business aligns with your employees’ values and is serious about making a positive difference to the communities you care about.
Rather than focusing on short-term giving, a foundation establishes a structured framework with dedicated funding and multi-year programmes that enable systemic change. Transparent reporting and measurable outcomes reinforce accountability and bolster stakeholder trust. It is a strategic, long-term pledge to create meaningful and lasting change.
There is no standalone legal status called a “foundation” in the UK.
One option is registering as a charity. Many corporate foundations are registered as charities with the Charity Commission.
This would involve:
Once registered, trustees must oversee annual filings, audits, and ongoing governance to maintain compliance and public trust. Funding can come directly from the company or through wider fundraising, but the foundation must maintain its independence.
An alternative option is holding a Donor Advised Fund (DAF).
A DAF is a simpler, increasingly popular option. With a DAF, your company holds funds in an account under an established charity (like CAF) until you are ready to use them for charitable purposes. You can brand and market it as your own foundation, while the DAF provider handles compliance and reporting. This means you can launch giving programmes in days, not months, without registering with the Charity Commission or appointing a trustee board.
A leading law firm has run its foundation through a DAF with us for 36 years. This structure has enabled the firm to:
Thanks to this approach, the firm has sustained a long-term partnership and delivered psychological and employability support to genocide survivors in East Africa.
At CAF, we believe being a responsible business and giving go hand in hand. In 2024–25, only 24 FTSE 100 companies gave at least 1% of their pre-tax profits. If more UK companies gave 1%, corporate giving could reach £9.06 billion. Our Corporate Giving Report can help you shape the right commitment for your organisation, with sector benchmarks and real-world examples to inspire your pledge.
Our experienced advisers provide sector-leading insights and guidance as your goals and strategy evolve. We can help you define your foundation’s purpose, develop a clear proposition and identify the most strategic way to achieve your aims.
CAF offers a flexible and secure DAF, via a Company Account – ideal for managing and maximising your company’s giving. Learn more about our DAF here.
Contact CAF’s expert advisers to discuss the best approach for your business. We’re here to help you make a lasting impact.
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Discover how the Smiths Group Foundation partnered with CAF to create a strategic global grant programme, supporting employee-nominated charities and helping drive employee engagement.
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