CSJ calls for dormant funds to be unlocked to spur matched giving by philanthropists
Howard Lake | 5 March 2025 | News
A new matched fund using £3.2 billion of dormant assets could release an additional £8.22 billion in philanthropic support, according to research by the Centre for Social Justice.
The CSJ “has uncovered” almost £4 billion in dormant funds, assets and unclaimed Gift Aid that could be used to support small charities and grassroots voluntary groups. The sum could be match funded by “willing and generous philanthropists”, many of whom have put their names as supporters to the research.
The report, ‘Supercharging Philanthropy‘, calls on the government to “articulate an exciting vision of what can be achieved, be clear it will be used to good effect, and create the conditions to find it”.
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It highlights the funding challenges that the voluntary sector is experiencing, citing four areas. First, it states “last year, non-government grants to charities fell by almost two-thirds, from nearly 100,000 in 2023 to barely more than 31,000”.
Secondly it adds that “corporate giving from companies in the FTSE100 has dropped leaving an estimated £164 million in lost charitable contributions”.
Thirdly it warns that “many foundations and grant givers have paused giving or are spending down their endowments”.
Fourthly it points to OBR analysis that suggests “between 12 and 25 per cent of non-UK domiciled individuals (non-doms) may leave the country”. The CSJ points to analysis that warns that these individuals each give an average of £5.8 million to good causes.
‘Think philanthropy approach’
In this context the report calls on ministers “to adopt a “think philanthropy approach” that requires all funding submissions to the Treasury to “show evidence of seeking philanthropic partners for suitable projects”.”
The report states:
“The Government should start with a National Strategy but not one that just stays with theory and principles, but an ambitious direction that sets numerical targets for giving and galvanises philanthropists to back projects that support the five national missions.”
It cites research that shows that matched donations are “on average, two and a half times higher than unmatched donations”, suggesting that this way of using the funds could boost the charitable sector far more than simply the original sum, large as it is.
It also recognises that prospective wealthy donors are more likely to contribute when they see the Government playing its part. As evidence of this the report has attracted the support of over 20 of the UK’s most prominent philanthropists, including Jonathan Ruffer DL, Lady Edwina Grosvenor, Andrew Law, Dr Nik Kotecha OBE and Steve Rigby.
In the joint foreword to the report they state:
“We stand ready to respond to the direction set by Government to unleash a new wave of philanthropic giving across the UK…
“If the Government provides clear vision, leadership and certainty, we will respond with generosity, creativity and innovation…If Government build the solid banks of the river, we will work together to make the water flow.”
Baroness Nicky Morgan, former Secretary of State at the Department of Digital, Culture, Media and Sport (DCMS) said:
“The philanthropists I meet are ready to give, and small charities across the UK are raring to put their money to good use. I hope the Government reads this report and articulates a clear vision to inspire more giving.”
The CSJ’s report recommends:
- Commit £3.27 billion of match funding into a National Mission Innovation Fund launching the National Philanthropy Strategy
- Create an independent National Philanthropy Champion and 12 Regional Philanthropy Champions tasked with meeting financial targets of philanthropic giving across each region of the UK and ensuring small and medium sized charities get their fair share.
- Improve uptake of payroll and legacy giving and simplify and automate gift aid.
Neil Heslop OBE, Chief Executive of the Charities Aid Foundation, said:
“The CSJ joins with CAF and others in the sector to call for a government-led national strategy for philanthropy and charitable giving. Taking steps to unlock funds, harness place-based networks and revitalise our culture of giving will contribute to building a more connected, more generous and more resilient society.”
Nathan Gamester, Managing Director of the Centre for Social Justice Foundation, highlighted the potential of the “untapped jackpot for charities”. He said:
“At the CSJF we have helped to direct over £14 million to frontline charities in our first three years, through advising private donors and administering trusts and foundations. We know the generosity is out there if the Government will only set clear direction and ambition. These charities are already suffering worst from an overall reduction in charitable donations. Government must do its utmost to help those on the frontlines of the fight against poverty.”
You can download a copy (in PDF) of the report Supercharging Philanthropy from CSJ.
The list of philanthropists backing Supporting Philanthropy includes:
Mark Adlestone OBE
Rahul Moodgal
Keith and Tania Black
Leo Noé
Tony Bury
Paul Donovan
Sir David Harrison KGCN, DUniv, MBA
Duncan Grant
Grant Gordon OBE
Lady Edwina Grosvenor
Matt Hyde, CEO, Lloyds Bank Foundation
Dr Nik Kotecha OBE
Christopher Nieper OBE
Chris and Jane Oglesby
James Reed CBE, Chairman of Big Give Trust
Steve Rigby
John Roberts
Stuart Roden
Jonathan DL and Jane Ruffer
Sir Brian Souter
John Spiers
Andrew Law
Sir Peter Vardy DL
Brian Linden
Andy Wates
Sir Harvey McGrath
Dr Iain MacRitchie
Steve Morgan CBE
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.