Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Wealthy Britons are willing to give an extra £2.8bn to charity each year, according to new research, which highlights the need for better advice for potential philanthropists.
The UK public is estimated to give about £26.4bn to charity each year. Those with more than £100,000 in savings and investments — excluding property and workplace pensions — could donate a third more on average, according to a survey by Opinium commissioned by think-tank Pro Bono Economics, with one in six saying they could donate twice as much.
Only 8 per cent of the UK’s 5.8mn wealthy individuals receive philanthropy advice, according to the survey, despite evidence it would break down barriers to giving, such as concerns about how charities are run and a lack of knowledge or experience with the sector.
Pro Bono Economics director of research, policy and communications Nicole Sykes said the government should work with the Financial Conduct Authority, the sector regulator, to mandate philanthropy training as part of the professional qualifications for financial advisers.
“Wealthy people are telling us they do have money that they could afford to give to charities, many of which are improving lives in the way that the government cares about,” she added.
“A simple change to educate all financial advisers in supporting their wealthy clients with philanthropy could unlock significant funds, while not costing the Treasury a penny.”
The FCA said advising on philanthropy and charitable giving did not fall within its remit because it was not a regulated financial activity but it often talked to professional bodies that offered qualifications to financial advisers.
Rennie Hoare, head of philanthropy at private bank C Hoare & Co, said the government and industry bodies could play an important role in raising awareness about donor-advised funds, vehicles that offer tax and administrative benefits for charitable giving.
Only one in 20 financial advisers are “very confident” discussing philanthropy, despite growing demand from younger clients, according to research by the Charities Aid Foundation last year.
“Education does need to happen in the advisory community about donor-advised funds, which is an off-the-shelf way to get people giving much more simply and quickly,” added Hoare.
The Opinium survey showed the priorities of wealthy donors are often aligned with those of the UK government, with 50 per cent of those surveyed donating to health and medical research, 24 per cent to charities supporting children’s organisations and 22 per cent to the alleviation of poverty and homelessness.
The charity sector has renewed calls on the government to introduce a “national philanthropy strategy” after the World Giving Index revealed the UK had fallen out of the top 20 most generous countries, ranking 22nd in 2024, down from sixth in 2014.
The Treasury declined to comment.
