Wealthy people in Great Britain say they could give an estimated £2.8 billion more to charity each year, raising the prospect of more than halving the giving gap the country faces relative to world leaders New Zealand and Canada, new research has said.

If that money were donated, health charities and children’s organisations are likely to benefit the most from an influx in giving, the research added.

The analysis by Pro Bono Economics (PBE) identifies 5.8 million ‘wealthy’ people in Great Britain – those with assets of £100,000 or more when their main residence is excluded – of whom 86% give to charity. While some of these donations are very generous, the report – ‘Mission Give’ – reveals a significant capacity for wealthy people to give more.

Survey data compiled by Opinium on behalf of PBE shows that more than half (56%) of wealthy donors believe they could give more to charity than they do presently, with one-in-six saying they could double their donations.

"The Prime Minister’s warnings over the government’s fiscal situation this week highlight the importance of exploring every possible option to release money that can do good. At a time when charities are held back from helping everyone who needs them by the income they can raise, steps to boost philanthropy are critical," PBE director of research, policy and communications, Nicole Sykes said.

“Government should seize the opportunity to empower wealthy people to give more and give better, with the support of the financial advice sector. A simple change to educate all financial advisers in supporting their wealthy clients with philanthropy could unlock significant funds, while costing the Treasury very little. Much of the money this would generate would go to support essential causes, with charities providing support to young people and tackling health issues like cancer and heart disease set to benefit the most."

Separate survey data analysed by PBE suggests that as many as 70% of UK charities expect demand for their services to increase over the coming months, and that one-in-three charities do not think they will be able to meet that demand.

Additional funding would be particularly welcomed by the third (32%) of charities that expect their finances to deteriorate in the next three months, and by the further 35% that expect their finances to stagnate.

The new research from PBE highlights the important role that financial advisers can take in feeding the additional giving appetite held by the nation’s wealthy.

Previous work has found that simply raising the prospect of charitable giving within a financial advice conversation increases subsequent donations by an average of 40%. But, while around half of the nation’s wealthy access financial advice in some form or other, just 8% receive any guidance on their giving strategy.

PBE estimates that extending philanthropic advice to all those wealthy people who already engage with a financial adviser could generate up to £1.1 billion a year more for the nation’s charities. That would be driven both by encouraging more people to give and by increasing the average value of donations.

Researchers believe that the first step to unlocking that £1.1 billion is to train all financial advisers to better understand philanthropy and how to support their clients with giving to charity. An alliance of accredited bodies, philanthropy advisers and financial advisers are already working together with the FCA to develop and distribute training on charitable giving for the financial advice sector.

PBE recommends that the new government accelerates this work by mandating philanthropy training as part of the ongoing CPD of financial advisers, so that all relevant professionals receive training on giving in the next three years.

To tap further into the potential giving of the wealthy and to grow charitable giving in the UK more generally, social sector leaders are calling on the government to develop and introduce a National Philanthropy Strategy. This follows countries including Ireland and Australia committing to grow, and in some cases double, giving in the decade ahead.

“The UK is naturally a generous nation, which is why almost all wealthy people already donate. Ensuring all financial advisers know how to talk to their clients about their giving is a simple and common sense first step to encourage the wealthiest to give more."

Elizabeth Steinhart, philanthropy adviser at LCM Family Ltd, an independent multi-family office, said: “Many of the wealthy people I work with are incredibly generous and want to make a difference to people's lives, but they need help to do it effectively and efficiently and importantly in a timely manner.

“Philanthropy is about more than making big donations. Increasingly wealthy clients want to engage with the causes they care about and want to lean in - to give time, in kind support, expertise when useful and to become a trusted ‘friend’ and advocate for the charities and social enterprises they give to. This creates long term partnerships that look more like an angel investment rather than old style ‘cheque book giving’ at the golf club dinner once a year.

“To be the best possible donors to charities, wealthy people need philanthropy advisors to turn to. Philanthropy advisers can offer clients access to the whole of the charitable playing field through their sophisticated networks, can make independent introductions, undertake research, due diligence, strategic planning and facilitate gifting that achieves maximum impact for the causes that need their support the most.”

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