The minister for civil society told a room full of fundraisers this morning that the most effective way for the government to boost giving and help charities is by supporting economic growth.
 
Nick Hurd acknowledged the difficulties faced by charities, but declared the economy was the "elephant in the room".
 
"It's not said enough in lectures like this," Hurd told the Institute of Fundraising National Convention audience, "but we shouldn't lose sight of the main game.
 
"If you look at the data on giving, the single most important thing government can do is support British entrepreneurs to get out there and get the economy moving again."
 
Hurd's speech followed a welcome by Institute chief executive Peter Lewis who broadly supported the government as having a "common cause" with the sector, but added his group "probably think it should be the giving and fundraising agenda", rather than the 'giving agenda' the government has discussed.
 
Hurd said that it was exceptionally rare that rates of giving exceeded rates of economic growth and that government efforts to boost philanthropy often fall flat.
 
"There's been a lot of intervention, hundreds of millions of taxpayers' pounds of investment... but it hasn't really worked. Very little has made a sustainable difference and we have to be honest about that."
 
The minister said that "business is absolutely fundamental", and will be required to work in partnership with government and the charity sector if there is to be any improvement in giving levels and participation in giving.

Payroll giving a priority

Payroll giving remains a priority of the government, Hurd said, but he sounded more frustrated by its progress than when he has previously spoken on the subject: "People scratch their heads and ask why it hasn't worked in this country," he said. "I think it's a horrible system to work with whether you are a charity, employee or employer."
 
But the government is "determined to get serious" about the mechanism, he said, and reiterated he has challenged the payroll giving companies to submit suggestions on how to improve the system.