The 2009 edition of the Coutts Million Pound Donors Report reveals the resilience of philanthropy and the desire of donors to fulfil their pledges and sustain their giving in the face of the current economic crisis. The report, produced in association with the Centre for Philanthropy at the University of Kent, tracks the quantity, size and destination of charitable donations worth £1m or more, that were made by UK donors or given to UK-based charities in 2007/08.

The research describes 189 ‘million pound donations’ that were made by UK donors or to UK-based charities in 2007/08. Most of these donors (51%) were individuals, who either gave directly or through their personal foundation; professional foundations were responsible for 38% of these gifts and only 1 in 10 came from corporations (11%). The most popular causes for ‘million pound donors’ were Higher Education, Arts and Culture and International Aid and Development. The average (mean) ‘million pound donation’ in 2007/08 was worth £7.4m, down from £8.4m in 2006/07, and the collective value of these donations was £1.4bn, which is 13% less than the £1.6bn value of the 193 ‘million pound donations’ made in 2006/07. This fall is in line with other research, such as UK Giving, which found an 11% drop in all charitable giving in the first year of the recession. Whilst any decline in giving is bad news, the report notes that falls in giving are not as steep as falls in wealth – estimated at 37% by the Sunday Times Rich List 2009 - which is said to demonstrate that donors are striving to sustain their giving in these difficult times.

Furthermore, the research finds that more ‘million pound donations’ are being given directly to charities to spend on activities. In a reversal from 2006/07 - the first year this research was undertaken – the larger part of donations of this size have been given direct to front-line charities rather than ‘banked’ in charitable foundations for distribution at a later date.  As a consequence, the amount of money that ‘million pound donors’ have made available for spending directly on charitable recipients has actually increased by over £100 million, from £705m in 2006/07 to £808m in 2007/08.

Beth Breeze, author of the report, notes: "Not only does this report demonstrate that UK philanthropy is far more resilient than many people have suggested, it is heartening to see that major philanthropists have reacted to the economic crisis by ensuring that more funds are being spent on front-line charitable activity rather than being put away in charitable foundations to be spent at some point in the future. Whilst philanthropists often want to make provision for future generations, arguably contemporary needs outweigh future claims during this difficult period."

The report also notes other changes in how philanthropists are giving in the recession, such as making large donations in instalments and a rise in anonymous and low profile giving.

The research is funded by Coutts Bank, who recently launched a new Charitable Giving Account. Mark Evans, head of the Wealth Institute at Coutts commented: “As always there are lessons to be learnt if we want philanthropy to grow exponentially. Donors need to be encouraged to share their ideas and experience in order to inspire others. Charities need to change the way they market to wealthy individuals by getting to know them first and by educating them about the causes they are looking to support. And bankers need to dare to introduce philanthropy into conversation with their clients and make it easier to give."

The report is freely available online at: www.kent.ac.uk/sspssr/cphsj or www.coutts.com/philanthropy