The UK has a philanthropy sector worth more than £100 billion, but the lack of targeted policies means that charities and social impact organisations miss out on as much as £5 billion of philanthropic income each year. Targeted policies could also accelerate a further £6.4 billion of investment from the social investment sector, which already contributes £60 billion to the UK economy delivering public services, health provision and community cohesion.
The APPG report Unleashing the Potential of Philanthropy and Social Investment highlights that government must take the lead to unleash more voluntary private funding to support the current cost of living crisis and the recovery from Covid-19 pandemic.
The recommendations to enable, incentivise and support philanthropy and social investment are:
- Appoint a Philanthropy and Social Investment Champion as a senior post within the Civil Service
- Build Civil Service knowledge of philanthropy, match funding and social investment blended finance
- Keep regulations on values-based investment under review
- Work with the Charity Commission and Financial Conduct Authority to develop guidance and targeted regulation for philanthropy and social investment
- Support initiatives to further develop data on the economic and social contribution of philanthropy and social investment
- Extend DCMS’s “Growing Place-Based Giving” Programme which was cut short by Covid-19
- Develop match funds on priority themes such as climate change, Levelling-up and regenerating the arts and culture sector post-Covid
- Review incentive for social investment learning lessons for Social Investment Tax Relief
- Offer long-term commitment to Government guarantee scheme for social lending
- Open dialogue with HM Treasury on providing support for structures for giving that use existing tax reliefs
The report Unleashing the Potential of Philanthropy and Social Investment has been produced with input from the leading organisations in the philanthropy and social investment sectors including the Association of Charitable Foundations, Beacon Collaborative, Big Society Capital, Charities Aid Foundation, Chartered Institute of Fundraising, New Philanthropy Capital, Philanthropy Impact, The Philanthropy Workshop, Pro Bono Economics, UK Community Foundations, Arts Council England, City Bridge Trust.
Unleashing the potential of philanthropy and social investment
Author(s)
The All Party Parliamentary Group on Philanthropy and Social Investment
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