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Household giving ‘recession proof’, research claims

Fundraising | Celina Ribeiro | 15 Feb 2011

Neither recessions nor times of great, widespread prosperity have managed to alter the amount of household spending which gets allocated to charity.

The proportion of their spending that UK households give to charity has remained steady in over more than two decades, according to research released today by the University of Bristol and City University. The average amount a household will donate to charity today is about 0.4 per cent of its total spending, precisely the same amount as in 1988.

The research findings has prompted suggestions by the academics behind the study that this kind of charitable giving is “recession-proof”.

Professor Sarah Smith, one of the report’s authors, said the findings represent both good and bad news. “It means that charities can rely on donors, even in times of recession,” she said. “But it also indicates the huge scale of the challenge in raising the level of donations.”

Charitable giving as a proportion of household spending has, in fact, increased from a slump in the late 1990s, said co-author Professor Cathy Pharoah (pictured), from Cass Business School at City University, who added that she hoped that the research would help inform efforts to boost giving in the future.

Elderly and wealthy giving more

One marked change over period the study reviewed was the growing philanthropy of the wealthy and over-65s.

Donors over 65 years old now account for a third of all charitable donations – although some of this rise could be attributed to the baby boomer generation moving into the age group.

The richest 10 per cent of households are now also giving more, their gifts now amount to 22 per cent of all donations. Their generosity, however, is still humbled by that of the poorest 10 per cent of households, which give 3.6 per cent of their total income to charity compared to the richest’s 1.1 per cent. 

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Directory: Cass Business School
Who's Who: Cathy Pharoah