The Beacon Collaborative APPG calls for government to step up for greater philanthropy and social investment from private sources in the UK.
“Philanthropy and social investment can reach further into our communities than government spending alone, but they need the right conditions to grow. This report outlines a 10-point plan that offers a route map for policy makers and regulators to create the right conditions for philanthropy and social investment to thrive in the UK.
In these extremely difficult times the philanthropy and social investment sectors are calling on government to consider all forms of capital in its response – including socially minded capital. Encouraging generosity from those with financial resources is not only desirable, it is essential to ensure stronger communities are at the core of the response to current economic hardship. Tax, philanthropy and social investment are not mutually exclusive – working separately and together they can unlock private capital for public benefit.”
– Cath Dovey, Co-founder at Beacon Collaborative.
The UK has a philanthropy sector worth more than £100 billion, but the lack of targeted policies means that charities and social impact organisations miss out on as much as £5 billion of philanthropic income each year. Targeted policies could also accelerate a further £6.4 billion of investment from the social investment sector, which already contributes £60 billion to the UK economy delivering public services, health provision and community cohesion.
Yesterday the APPG published its report Unleashing the Potential of Philanthropy and Social Investment to highlight that government must take the lead to unleash more voluntary private funding to support the current cost of living crisis and the recovery from Covid-19 pandemic.
The recommendations to enable, incentivise and support philanthropy and social investment are:
- Appoint a Philanthropy and Social Investment Champion as a senior post within the Civil Service
- Build Civil Service knowledge of philanthropy, match funding and social investment blended finance
- Keep regulations on values-based investment under review
- Work with the Charity Commission and Financial Conduct Authority to develop guidance and targeted regulation for philanthropy and social investment
- Support initiatives to further develop data on the economic and social contribution of philanthropy and social investment
- Extend DCMS’s “Growing Place-Based Giving” Programme which was cut short by Covid-19
- Develop match funds on priority themes such as climate change, Levelling-up and regenerating the arts and culture sector post-Covid
- Review incentive for social investment learning lessons for Social Investment Tax Relief
- Offer long-term commitment to Government guarantee scheme for social lending
- Open dialogue with HM Treasury on providing support for structures for giving that use existing tax reliefs
The report highlights that the lack of clear policies and leadership from government mean the UK is failing to grow this vital revenue source that targets the most vulnerable in society and enables communities to thrive. The UK is currently the fourth most generous nation in the world. Those higher up the list, notably the United States, have targeted policies to grow philanthropy and social investment such as “Public-Philanthropic Programmes” that proactively engage private philanthropic capital in both state and federal initiatives.
The All Party Parliamentary Group on Philanthropy and Social Investment aims to to further the understanding of the role of philanthropy, giving and social investment in parliament, and to act as a discussion forum for politicians, philanthropists, social investors and experts to develop policy to improve and increase the amount of giving and social investment to good causes in the UK.
The UK has a philanthropy sector worth more than £100 billion, but the lack of targeted policies means that charities and social impact organisations miss out on as much as £11.4 billion of philanthropic and social investment income each year. This report outlines clear policies and asks government to provide the leadership needed to allow the philanthropy and social investment sectors to unlock capital from private individuals to support the most vulnerable in our society and help communities to thrive.
The report Unleashing the Potential of Philanthropy and Social Investment has been produced with input from the leading organisations in the philanthropy and social investment sectors including the Association of Charitable Foundations, Beacon Collaborative, Big Society Capital, Charities Aid Foundation, Chartered Institute of Fundraising, New Philanthropy Capital, Philanthropy Impact, The Philanthropy Workshop, Pro Bono Economics, UK Community Foundations, Arts Council England, City Bridge Trust.