On a recent sunny day in Leeds, I hosted a panel discussion on business and philanthropy, organised by Connect Yorkshire. The three panellists each had their own lens on this topic, from the perspective of an entrepreneur (Rachel Hannan), a former CEO of a larger commercial organisation (Michael Hughes) and CEO of Leeds Community Foundation (Steph Taylor).
The recent findings from the CAF report on ‘Corporate Giving 2024, The FTSE 100 and beyond’ provide interesting context here. The report found total donations by FTSE100 companies fell slightly to £1.82 billion in 2023, and that beyond the FTSE100, 75% of UK businesses did not support charities in 2023. If all companies gave at least 1% of pre-tax profits, charities could receive an extra £5 billion a year.
“I would have started earlier.” Michael’s reflection prompted discussion about how businesses can get started supporting charities, to enable people unfamiliar with the charity sector to learn more about charitable organisations through volunteering. On a show of hands, many in the room worked for employers who offer a number of days of paid volunteering leave. The ‘philanthropy journey’, which might begin with someone becoming a volunteer, might then evolve into someone who becomes a donor (and who might later be a charity trustee or Chair, reflecting on Rachel’s many hats as she has moved across these roles at different times). The many domains of philanthropy were clear in the panel discussion from the variety of ways that “care for humanity” can manifest itself, be that financial support, donation of equipment/goods or time.
The panel emphasised the importance of making volunteering beneficial for both parties. The exploitative practice of businesses expecting a free corporate volunteering ‘away day’ was called out. Charities are spending time organising and hosting such experiences and they should not be free. It is positive to see charities being clear about the charge made for firms wishing to book team volunteering days. As well as being an income-generator, team visits can also expand the supporter base of a charity as some future individual volunteers or donors may emerge after being introduced to a charity in this way.
Aside from corporate away days, meaningful volunteering of specific skills or help with particular projects was discussed. Seeking volunteers who can contribute strategy, HR, financial modelling or IT expertise, for example, might better align with someone’s core employment experience and skillset. This more strategic volunteering can bring value to both parties.
Young Enterprise also came up during audience discussions, as one example of a charity that might be a good fit for entrepreneurs and businesses who want to partner with an organisation which focuses on skills development in young people, which in turn feeds into employability. As someone who enjoyed being involved with Young Enterprise when I was at school, I was delighted to hear it is still going strong and doing what it’s always done well: giving young people a first taste of the business world and enabling them to see future pathways for their business ideas.
Steph Taylor talked about the work of Leeds Community Foundation and how it helps to bring a local focus to particular pools of funding. There can be a greater satisfaction (and reassurance) in being able to see the difference a donor’s support makes in their local area. It can also reduce administration costs for a charity, when donors can literally see how their donations are being used and don’t want lots of detailed reports as a result – a win-win.
Rounding off the session in Leeds, I set out the ways the UK tax system rewards donors. Across income tax, capital gains tax, inheritance tax and corporation tax, there are various reliefs and exemptions for individuals or companies.
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