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Banks named as most generous corporate donors

Fundraising | Vibeka Mair | 1 Apr 2009

Barclays Bank and HBOS have been named the largest corporate givers, increasing their charitable giving by 10 per cent and 4.2 per cent respectively in the last financial year, according to research by the Directory of Social Change (DSC) in its biennial Guide to UK Company Giving 2009/10.

The guide, which covers the financial period 2007-2008, listed Barclays as the biggest contributor, giving £38.9m, a 10 per cent increase on 2005/06. It was followed by fellow banks Lloyds TSB, which gave £37.5m, and HBOS, which gave £18.6m.

Other companies increasing their total contributions include Ecclesiastical Insurance Group, which nearly tripled its charitable giving from £5.4m to £14.1m, and Marks and Spencer Group, which increased its giving from £9.3m to £15m.

Overall the level of cash donations from the 490 companies listed in the guide has risen by 36 per cent to £808m, compared with a 26 per cent rise in the 2005/06 edition, to £734m.

However, John Smyth, the guide’s author and DSC’s senior researcher, warned that the current economic climate meant it was likely that some companies would choose to cut back on their community investment going forward, whilst for others it would remain static or increase at a slower rate.

£500m drop expected

Smyth’s prediction reflects another survey that has found donations to good causes are expected to be down by over a third – around £500m – as a result of the economic downturn.

The survey of 450 senior business leaders in the UK, commissioned by the Social Investment Consultancy and carried out by YouGovStone, found that corporate giving is expected to drop by 34 per cent this year, with 60 per cent of respondents expecting their organisation to cut its charity budget.

More optimistically 80 per cent of respondents agreed that companies whose budgets are squeezed should look for other ways of helping the community such as gifts in kind or staff volunteering. And 79 per cent agreed that being a socially responsible business can create a competitive advantage.

Jake Hayman, CEO of the Social Investment Consultancy, said: “These cutbacks will either expose corporations as fair-weather donors, or it could mean they apply themselves to develop more innovative ways of supporting communities.

“The truth is there are plenty of things companies can do to maintain strong partnerships with good causes that can build rather than hit the bottom line.”

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