High net worth individuals in the UK are give a far smaller proportion of their fortune to good causes than the wider public do.

While the richest in the country gave the equivalent of 0.4% of their combined £2tr in assets to charity, the proportion rises to 1.6% among the general public.

In total the richest gave an estimated £7.96bn in 2023, compared to £13.9 from the wider public over the same period, the research revealed by Charities Aid Foundation found.

Its High Value Giving report found that if the UK’s estimated 536,673 millionaires donated 1% of their assets to good causes this could generate an extra £12bn in income for charities.

Donors who have the highest proportion of their wealth are on average 63 years old and are twice as likely to have inherited their wealth.

Their donating to charities is aligned with their personal experiences and values and a sense of responsibility given their fortune.

The research also found marked differences in good causes supported by the wider public and the UK’s richest.

Six in ten wealthy donors support education charities, compared to just 4% of the wider public. Meanwhile one in four of the richest donate to arts and culture, compared to only 3% of the public.

Instead the general public’s top good cause is animal welfare, supported by just under three in ten.

CAF estimates that £5.5tr in assets is set to be transferred from the Baby Boomer generation to younger generations.

It estimates that the “next generation are predicted to be the most significant charitable donors in history”.

Government is being urged by CAF to develop a national strategy for philanthropy and charitable giving to coordinate giving, including from the very richest in society, across government.

The UK has a strong history of philanthropy, which has been behind some of our most important innovations and funds crucial charitable services throughout our country,” said Charities Aid Foundation head of private clients Edward Garrett.

“But there is cynicism towards philanthropy in the UK, perhaps more so than other countries.

“There is considerable untapped potential for philanthropy to contribute towards tackling local, national and global challenges.

“Donors, particularly among the next generation, are increasingly considering their giving as part of the spectrum of capital they can invest within the broader impact economy.

“The government can take steps to harness this and renew Britain's culture of giving to strengthen civil society for the future, with high-net-worth individuals and professional advisers playing a leading role.”

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