Corporate donations now make up just 1% of the charity sector’s income, according to the NCVO’s latest almanac, which was published in February. The figures, taken from 2003/04 charity accounts, show a sharp drop in company giving since 2001/02, when they stood at 4%. But Karl Wilding, the NCVO’s head of research, cautions against comparing the year on year results of the survey, as the methodology has changed in two key ways: the NCVO now uses a bigger sample size; and is now aware of more charities than before. Nevertheless, the data highlights some long-term trends: business giving appears to be falling sharply in the medium term; business support is shifting towards in-kind modes of support; it is harder to track the extend of relationships between businesses and charities as in-kind donations are rarely valued in charities’ annual accounts; there is a shift from ‘giving’ relationships – a grant for which nothing is expected in return – to ‘buying’ relationships where the charity in effect loans its brand in return for a sponsorship fee; and that companies are making their charitable giving more professional. Contact Karl Wilding, NCVO 020 7520 2478 www.ncvo-vol.org.uk
Briefing comment
Most surveys of giving ask UK companies what they donate. This one asks UK charities what they receive from corporations – and comes up with a different number, notably the surprisingly low figure of one percent. One reason may be that much of what UK businesses gives is spent in overseas subsidiaries. As the NCVO itself points out, the survey is fraught with methodological difficulties. For example, should corporate foundations be classed as givers or receivers of donations? Both, depending on why you want to know. That’s why Briefing has previously called for a well-based calculation of how much cash charities actually receive from corporations – a clear role for government to organise such a study. There is another question, though – what should the level of corporate funding actually be? Higher than one percent, we’d argue, as charities shouldn’t depend too much on government for funding or the vagaries of personal giving if they want to be truly independent. A recent MORI survey shows the UK public thinks companies provide a quarter of charities’ income. But to bring current levels up even to just 5% would require a fivefold increase in corporate spend in the UK. And that is not going to happen in a hurry.
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