A major new report by Beacon Collaborative calls for the UK to seize an estimated £180 billion global opportunity to become the leading centre for international philanthropy and social investment. The report highlights an opening for the UK post-Brexit and at a time when Covid-19 is shining a spotlight on domestic and cross-border philanthropy.
Based on calculations which size the global market at $250 billion the report makes a number of recommendations for the UK Government, HMRC, the Charity Commission and civil society to position itself as a leader in international philanthropy and social investment.
The areas for action that the UK could seize to strengthen its position as a centre for philanthropy include:
- Amending the Finance Act 2010 to apply UK equivalency regime to charities beyond many European jurisdictions (this would enable overseas charities to enjoy the same tax advantages as UK domestic charities)
- Investing in the UK’s Charity Commission and HMRC to support international philanthropists to set up a UK foundation and/or donate money to UK charities.
- Appointing a ‘Philanthropy Commissioner’ and an International Philanthropy and Social Investment Council.
- Investing more to promote the unique incentives of Gift Aid and Social Investment Tax Relief internationally.
- Considering how the Honours system might be used to encourage international philanthropy in the UK.
‘There is an enormous opportunity for the UK to become a hub for wealthy individuals who want to support positive global change. Both Brexit and Covid-19 have caused challenges and uncertainty but have also highlighted the importance of global collaboration to tackle global issues,’ said Cath Dovey, report author and Co-Founder of Beacon Collaborative.
To read the full report ‘The UK as a Centre of Excellence for International Philanthropists and Social Investors’, visit the Beacon Collaborative website.
The Beacon Collaborative was formed in January 2018. It is a movement encouraging more private assets to be used for public good. It aims to double the UK’s giving.