Call for wealthiest to support a UK Giving Pledge

Call for wealthiest to support a UK Giving Pledge

News

A UK Giving pledge in which society’s wealthiest members lead an increase in giving by promising to give at least 1.5% of their income to charity has been mooted by John Low, chief executive of the Charities Aid Foundation (CAF).

New research from CAF shows that the wealthiest people give less to charity as a percentage of their income than those less well off, though it reveals the difference is not as great as has oft been quoted.

Analysis from the soon-to-be-published ‘UK Giving 2011’ research annually produced by NCVO and CAF shows that on average those earning under £32k give over 1% of their income to charity, while those on over £52k give just 0.8%.

Its evidence that philanthropy has not developed as well as had been hoped since 2004, when a three-year government funded ‘Giving Campaign’ concluded that the average percentage of income that individuals give to charity should increase from 0.7% to 1.5%, with the wealthiest giving the most.  The group also recommended that by 2014 donations should have doubled in real terms. NCVO and CAF estimate that since 2004 the total amount given to charity in real terms has only increased by 15.2%.

Speaking at a House of Lords reception to mark the end of the Giving Forum established to keep a parliamentary focus on philanthropy, John Low said; “We should continue to strive towards the aspirations of the Giving Campaign and call for people to give at least 1.5% of their income to charity every year, with the percentage rising for those with greater wealth.”

Low also made reference to another initiative to create a norm around giving; Legacy 10, which launched just hours after this event a stone’s throw from Westminster at Tate Britain, with the aim of encouraging people to leave 10% of their estate to charity.

Low said: “Today’s Legacy 10 launch is a great start, with high profile people publicly talking about their giving. We would like to see a wide-spread Giving (while living) pledge led by those in positions of influence; with the wealthy encouraging each other in the way that Gates and Buffet and others have shown can work so well.  We want to see Ministers loudly championing and celebrating philanthropy and sending a strong message through their own giving, where business and charity leaders follow suit and where everyone across the UK can play their part.”

A UK pledge would mirror the US Giving Pledge launched by investment banker Warren Buffett and Microsoft billionaire Bill Gates, though on a much smaller scale. The USA pledge calls on billionaires to pledge to give the majority of their fortune to charity and has attracted more than 60 signatories. CAF estimates that a similar campaign calling on UK billionaires to leave the majority of their fortunes to charity would raise £60m, based on the latest Sunday Times Rich List figures.