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

17 July 2023

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

Bottom 20

*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.