The richest people in the country do not donate enough to good causes and are “not covering themselves with glory”, the chair of the Charity Commission said today.
Orlando Fraser told an event that levels of philanthropy by the wealthiest 1 per cent of people “verges on shameful” when compared with the generosity of poorer donors and volunteers.
Outlining the commission’s plans to encourage the richest in society to give more, Fraser said that the regulator was recruiting a philanthropy expert to its board and would publish new guidance next year on when charities should accept or reject donations.
He was speaking this afternoon at an event organised by the Beacon Philanthropy Forum.
Research by Pro Bono Economics published last year calculated that the value of charitable donations by the richest people in the UK fell by 20 per cent between 2011 and 2019, even as their income and assets rose sharply.
Fraser said that “not all of the top 1 per cent were rising to the challenge” of philanthropy, adding that the gap between giving by the richest people in the United States and the wealthiest here was equivalent to £19bn a year.
He said: “This is disappointing enough, but it verges on shameful when you consider how vibrant giving and volunteering are amongst the less fortunate of their fellow UK citizens.”
Fraser added: “The sad fact, however, is that some of those in our country with the deepest pockets are not covering themselves with glory in philanthropic terms and this matters.”
He argued that there was a role for “shaming the rich into giving more” but also that wealthy philanthropists should be celebrated in order to encourage others to join in.
Fraser said: “Those with means hold more power than those without. Donating a proportion of that wealth to charitable causes is an exercise of that power, certainly. But it is one that serves to empower others, too.
“Giving is good for those who give, it is good for those who benefit and it is good for society as a whole.”
Sceptical commentators should overcome “squeamishness” about “rich people engaging in conspicuous philanthropy”, he added.
He called on philanthropists to step up during the current economic crisis, at a time when “many charities in turn are struggling, affected by rising costs, rising demand and the risk of dwindling income as ordinary donors tighten their belts”.
Fraser said: “Donations are down in many of the charities I’ve visited. All are feeling the impact of surging energy prices.
“Some have told me that this is affecting their operations already, for example limiting their opening hours.”
Philanthropists should provide more help and greater innovation in giving, he said, adding: “It is literally all hands to the financial pump for now.”