Giving by family foundations is up by 19 per cent to its highest ever level, but donations to those foundations are down almost 35 per cent, according to research published today by the Association of Charitable Foundations.
The report, Family Foundation Giving Trends, is based on research by Cathy Pharoah, professor of charity funding at Cass Business School (pictured). It looks at 100 foundations funded by individuals, families and family-owned businesses, and is based on accounts for years ending in 2012. The report has been produced annually for the last six years.
This year’s report shows that family foundations spent £1.63bn, compared to £1.34bn in the previous year.
This was almost three-fifths of all charitable giving by foundations, and 8 per cent of all giving.
It showed that overall income for foundations was down 18.6 per cent. While voluntary income was down from £348.2m to £233.2m, investment income was up from £657.8m to £684.5m.
Voluntary income to foundations can be volatile due to the effect of a small number of large donations, but Pharoah said it was also likely to be driven by weaker market returns and lower income levels.
“The report suggests a possible boom in building foundations and income just before the recession,” she said. “Can such expansion now be maintained through a time of lower growth and investment returns?”
The ten most generous family foundations at the time of the report were:
- Wellcome Trust - £511m
- Gatsby Charitable Foundation - £145m
- Leverhulme Trust - £72m
- Wolfson Foundation - £50m
- Garfield Weston Foundation - £49m
- Children’s Investment Fund Foundation - £47m
- The Monument Trust - £45m
- Esmée Fairbairn Foundation - £32m
- Gosling Foundation - £28m
- Dr Mortimer and Theresa Sackler Foundation - £26m
