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Rich Britons are prepared to offer an additional £2.8bn to charity annually, in response to new analysis, which highlights the necessity for higher recommendation for potential philanthropists.
The UK public is estimated to offer about £26.4bn to charity annually. These with greater than £100,000 in financial savings and investments — excluding property and office pensions — might donate a 3rd extra on common, in response to a survey by Opinium commissioned by think-tank Professional Bono Economics, with one in six saying they may donate twice as a lot.
Solely 8 per cent of the UK’s 5.8mn rich people obtain philanthropy recommendation, in response to the survey, regardless of proof it will break down limitations to giving, akin to considerations about how charities are run and a lack of know-how or expertise with the sector.
Professional Bono Economics director of analysis, coverage and communications Nicole Sykes stated the federal government ought to work with the Monetary Conduct Authority, the sector regulator, to mandate philanthropy coaching as a part of the skilled {qualifications} for monetary advisers.
“Rich individuals are telling us they do have cash that they may afford to offer to charities, a lot of that are bettering lives in the best way that the federal government cares about,” she added.
“A easy change to teach all monetary advisers in supporting their rich purchasers with philanthropy might unlock important funds, whereas not costing the Treasury a penny.”
The FCA stated advising on philanthropy and charitable giving didn’t fall inside its remit as a result of it was not a regulated monetary exercise however it typically talked to skilled our bodies that provided {qualifications} to monetary advisers.
Rennie Hoare, head of philanthropy at non-public financial institution C Hoare & Co, stated the federal government and business our bodies might play an vital position in elevating consciousness about donor-advised funds, automobiles that provide tax and administrative advantages for charitable giving.
Just one in 20 monetary advisers are “very assured” discussing philanthropy, regardless of rising demand from youthful purchasers, in response to analysis by the Charities Assist Basis final yr.
“Training does must occur within the advisory neighborhood about donor-advised funds, which is an off-the-shelf approach to get folks giving far more merely and shortly,” added Hoare.
The Opinion survey confirmed that the priorities of rich donors are sometimes aligned with these of the UK authorities, with 50 per cent of these surveyed donating to well being and medical analysis, 24 per cent to charities supporting youngsters’s organisations and 22 per cent to the alleviation of poverty and homelessness.
The charity sector has renewed calls on the federal government to introduce a “nationwide philanthropy technique” after the World Giving Index revealed the UK had fallen out of the highest 20 most beneficiant international locations, rating twenty second in 2024, down from sixth in 2014.
The Treasury declined to remark.
