Donations from big business to charities are in decline and are failing to keep pace with their profits, research into giving among FTSE 100 firms has found.

Just one in four FTSE 100 companies gave to charity last year with total donations falling by 8.3% over the last year and by more than a third over the last decade.

In 2014 FTSE 100 firms had a combined pre-tax profit of £130bn and made donations totalling £2.1bn.

But by 2025 their profits had increased to £194bn, but donations over this period fell to £182bn.

The research by the Charities Aid Foundation which found that “if donations had risen at the same rate as profits have, the amount given by the FTSE 100 in 2023 would be an estimated £3.13bn”.

If all companies gave at least 1% of their pre-tax profits to good causes, charities could receive an extra £5bn a year, CAF estimates.

“For modern businesses, a sense of purpose is no longer just a ‘nice to have’, and those that don’t prioritise crucial social and environmental issues are at real risk of being left behind,” warns CAF chief executive Neil Heslop.

“Demand from regulators, policymakers and consumers for companies to embrace social purpose and deliver positive impact for both people and planet is clear.”

He said that “the longer-term picture clearly shows that overall, giving has not kept pace with profits”.

“In fact, the amount given by the top listed companies has declined over the past decade,” he said, adding that “much more needs to be done.”

Among those giving to charity, healthcare firms are the most generous in the FTSE 100, contributing almost a quarter of all donations. ¬

“It’s important for organisations to benchmark themselves within their own sector and against other sectors – especially since there is significant disparity across the FTSE 100,” said CAF principle corporate advisor Lucy Mantella.

“Businesses that aren’t donating in line with their profits may be able to learn from those who are and use the 1% benchmark to consider how they can raise their giving game.”

This week separate research by C&E Advisory Services found that just 12% of charities believe donations from companies to the sector will “increase significantly” over the next three years.

A fifth believe giving by big business will stagnate over the same period.
https://www.charitytimes.com/ct/Most-charities-pessimistic-about-significant-corporate-donation-increases-survey-finds.php

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