The Philanthropy Advantage Report 2025
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Anna Mowbray
Senior Policy Manager
For over 100 years, the Charities Aid Foundation (CAF) has worked at the centre of the giving world, supporting donors to give more effectively, strategically, and impactfully, connecting them with charities globally. Through our research and policy work CAF has helped to understand and shape the environment for charitable giving and influence national conversations about the future of philanthropy.
Now, building on this legacy, CAF — working together with other influential sector bodies — is calling for a National Strategy for Philanthropy and Charitable Giving. We’re asking government to work with charities and donors to deliver an ambitious, collaborative blueprint to reinvigorate the UK’s culture of generosity.
Philanthropy and charitable giving have never been more crucial. Charities across the UK are facing unprecedented challenges—a “triple threat” of rising demand, stagnant donations and rising costs. Our data reveals that while the desire to give remains a powerful motivator, we are increasingly reliant on a smaller group of generous donors. For the first time ever since we began tracking this, last year only half of people said they gave to charity. And only 25% of UK businesses donated to charities in the form of time, cash or goods.
The global context is challenging. As our CEO, Neil Heslop has written, “philanthropy and charitable giving have never been more needed. Against a backdrop of global political and economic uncertainty, retrenchment in international aid and other fiscal constraints, securing greater and more impactful philanthropy — and its encouragement — is now essential.”
That’s why it is the right moment to renew and strengthen the foundations of giving. We need a new government approach that legitimises, enables, encourages, and incentivises giving.
CAF and our partners at Beacon Collaborative have worked to articulate a core set of policy changes that we believe would create a step change in philanthropy and giving in the UK. Developed through collaboration with sector experts, the document we have drafted draws on the rich evidence we have about the state of giving and the barriers that need to be overcome to unlock more giving. It is a “living document” which will evolve over time. We’ve shared this with policymakers and our ambition is to see the actions in it taken forward.
Taken together, the policies we’ve set out could mean more donations for charities and more choice for donors.
For example, we know that match funding (where contributions from donors unlock contributions from the government) is a really powerful tool at the government’s disposal, which can boost the value of government investment, by attracting new philanthropy. But too often grants are made from central government to good causes without looking for opportunities to secure match funding from philanthropists.
If, as we call for, there were a stronger presence for philanthropy within government, with ministers and civil servants identifying opportunities to partner with philanthropy, more chances for this could be seized.
Similarly, it’s a missed opportunity not to work with the fantastic network of wealth advisers we have here in the UK. Advisers have a hugely important role to play in discussing their clients’ wider financial goals which may include plans to give to good causes, or to leave a legacy to charity. Yet our research has found that many advisers are underestimating how important it is to be well-informed about charitable giving. With greater focus on including philanthropy in regulated financial planning conversations, more giving could be unlocked.
Our data also shows that giving isn’t evenly distributed throughout the country. That’s why we also need work to direct more philanthropy to the places we need it, through regional match funds and support for place based giving schemes (which bring donors together to support the places they are connected to).
Taking a strategic approach could be more than the sum of its parts. By looking holistically at the UK’s culture of giving, a national strategy would lower barriers to giving, boost public trust, and ensure that every donor can contribute meaningfully — giving charities a strong foundation for the future.
There are already positive signs from the Government that they are taking this agenda seriously. The culture minister has committed to a place-based philanthropy strategy, and the work of the Treasury appointed social impact investment advisory group is advising how government can work with philanthropy, social investment and purpose driven businesses to achieve this government’s five missions.
For us, our focus will now be on broadening engagement, refining recommendations in partnership with donors, charities and infrastructure organisations, and continuing to advocate for these changes.
Look out for an update to this blog where we’ll share an update on progress.
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Explore high-net-worth individuals’ views on the importance of philanthropy, and the role advisers can play leading more charitable giving conversations with their clients.
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