Researchers estimate that rich people in the UK could give up to £2.8bn more to charities every year, with one in six wealthy Britons saying they could afford to double their donations.
Pro Bono Economics (PBE) commissioned market research firm Opinium to survey over 1,000 British adults with investable assets of £100,000 or more last year, 86% of whom currently donate to charities.
Some 56% of wealthy donors said they could give more to charity than they do presently, with one in six saying they could double their donations.
PBE estimated that there are currently 5.8 million wealthy Brits, based on the Office for National Statistics’ Wealth and Assets Survey, and that these people would collectively be willing to give an additional £2.8bn to charities, based on the Opinium survey findings.
It suggested that £1.1bn of this could be unlocked if all wealthy people with a financial adviser also received philanthropy advice.
‘Government should seize the opportunity’
PBE director of research, policy and communications Nicole Sykes said: “At a time when charities are held back from helping everyone who needs them by the income they can raise, steps to boost philanthropy are critical.
“Government should seize the opportunity to empower wealthy people to give more and give better, with the support of the financial advice sector.
“A simple change to educate all financial advisers in supporting their wealthy clients with philanthropy could unlock significant funds, while costing the Treasury very little.
“Much of the money this would generate would go to support essential causes, with charities providing support to young people and tackling health issues like cancer and heart disease set to benefit the most.
“The UK is naturally a generous nation, which is why almost all wealthy people already donate. Ensuring all financial advisers know how to talk to their clients about their giving is a simple and common sense first step to encourage the wealthiest to give more.”
Opportunity to increase high value legacies
Meanwhile, a separate report from Remember A Charity published this week emphasised the importance of wealth advisers in increasing high-value legacy donations.
It reported that while fewer than 1% of charitable estates in recent years have included gifts of over £500,000, these account for 26% of the sector’s legacy income, according to data from Smee & Ford, which amounts to around £1bn each year.
Remember A Charity director Lucinda Frostick said: “Even a small increase in high-value legacy gifts could significantly enhance UK charities' long-term funding, making a transformative impact on good causes.
“And wealth advisers are uniquely positioned to accelerate this growth. By working collaboratively, charities and wealth advisers could unlock invaluable philanthropic potential.”
Frostick will be writing more about this report for the upcoming issue of Fundraising Magazine, in which she will also offer advice for charities aiming to increase their legacy income from wealthy donors.
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