Culture secretary Lucy Frazer has hit out against critics of fossil firms that seek to back charities through philanthropy and sponsorship deals.
She believes the UK needs a “collective attitude shift” in its approach to philanthropy and should “applaud” wealthy individuals and firms, including fossil fuel companies, who give to good causes,
Instead of “seeking to find fault” with philanthropists, UK society should be “applauding them”, she said.
In a speech this month Frazer claimed that “as a nation we are sometimes squeamish about talking about earning and giving” and “sometimes reluctant to recognise wealth as a positive force in society”.
She added that “often, worse, we denigrate those who succeed and those who give”.
"A big part of the equation is unashamedly championing philanthropy. And, for that, I believe we need a collective attitude-shift,” she said.
She is specifically concerned about criticism of fossil fuel philanthropists, citing protests in recent years around sponsorship deals with the Science Museum involving firms including Shell and BP.
Another example she gives is concerns raised last year by climate activists around sponsorship of the National Portrait Gallery by law firm Herbert Smith Freehills, which has represented firms including BP. The Gallery had ended its partnership with the fossil fuel firm the previous year.
Frazer was speaking at an event staged by right wing think tank Onward, which has this month produced a report on how philanthropy can be improved in the UK.
Thousands of people give up their time and money every week to support charitable causes and give back to their communities.
— Lucy Frazer (@lucyfrazermp) January 25, 2024
But we want to make philanthropy easier and recognise those who give. I spoke at @ukonward this morning about how. pic.twitter.com/VBwAfKsM5J
Onward’s report points out that the top 10% of earners in the UK donate at half the rate of the poorest 10% “resulting in £3.4bn in lost funding for charities”.
It raises concerns that “too few wealthy individuals are participating in philanthropy. Of all donations from the top 1% of households, half came from less than 5% of the group”.
It is calling on HMRC to automate Gift Aid to make it “simpler and easier to use”.
Making philanthropy a mandatory part of training for wealth advisers is another recommendation.
Also being called for is the appointment of a “philanthropy champion” in government.
“Philanthropy is a powerful way for the richest to give back, funding causes and initiatives that the government and markets too often miss,” said Onward senior researcher Shivani Menon.
“It’s something we must encourage, not shy away from.
“But the most affluent Brits aren’t holding up their end of the charitable bargain that expects those with the most to give generously to the least.
“Their donations dwarf in comparison to their growing incomes and wealth, and only a handful of the richest do the lion’s share of donating while too many others sit idle.
“We need to unleash Britain’s untapped philanthropy potential with better tax incentives, reformed wealth advice and stronger regional giving to encourage a new generation of givers.”
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