Impact of the financial crisis

Half of UK foundations reducing grantmaking but philanthropists barely affected

1 July 2009
www.alliancemagazine.org

Despite investment losses, nearly half of UK charitable foundations expect grantmaking to hold steady or increase in the next year, according to a survey carried out by the Association of Charitable Foundations among its members. From a glass-half-empty point of view, this means that just over half expect grantmaking to fall in the same period, though the longer-term outlook remains optimistic.

Beyond two years, 45 per cent of survey participants expect to increase their grantmaking and another 33 per cent to maintain current levels. Seventy-five per cent of respondents had seen a significant decrease in investment value over the past 12 months and some anticipate changes in the nature of the grants they make next year: 44 per cent are likely to give fewer grants, 27 per cent believe their grants will be smaller, and 23 per cent think they will be given over shorter periods.

With UK philanthropists, the picture is rosier. Almost all of those surveyed earlier this year plan to maintain or increase their giving during the recession, according to a poll by Coutts, the private banking arm of the Royal Bank of Scotland. The survey of 100 philanthropists in April found that 42 per cent planned to increase their charitable giving, and 45 per cent said they would maintain the same level of donations. Maya Prabhu, senior philanthropy adviser at Coutts, said: ‘While unstructured and spontaneous giving might to some extent fall victim to the economic downturn, results show that we will see some wealthy individuals giving more to help charities.’

In a move to promote charitable giving in the UK, in April the government appointed Dame Stephanie Shirley as the first Giving and Philanthropy Ambassador. She will work to support Ministers and the Office of the Third Sector (OTS) in championing giving and philanthropy.

For more information
Philanthropy UK, 9 June 2009
Third Sector Online, 3 June 2009
www.philanthropyuk.org/NewsandEvents/Latestnews/Givingandphilanthropyamb...