Growth in grant-giving foundations and trusts accelerated in 2020 as Britain responded to Covid-19
~ 2020 saw the highest number of grant-giving foundations and trusts established since the 2007-8 economic crisis
~ Actor Penelope Keith and fashion designer Zandra Rhodes some of the leading personalities to establish grant-making family trusts
Over 1,700 grant giving charitable trusts and foundations were registered with the Charity Commission in 2020, providing an important indication of philanthropic intention during last year’s Covid-19 pandemic.
Dames Penelope Keith and Zandra Rhodes are among the philanthropists to have established a total of 1,731 foundations and trusts during the course of 2020 with the primary purpose of serving as a grant-making institution according to the New Grant-Makers 2020 review published by consultancy Cape Partnership and UniversityPhilanthropy.com.
The economic shortfalls and inequalities revealed by the Covid-19 pandemic appear to have served as a reminder to many that, as the millionaire businessman Matt Moulding concludes, "it is essential that those who are able to help out, do so". Mr Moulding and his wife are the founders of the Moulding Foundation, one of the grant-making foundations established in 2020.
Using Charity Commission data, the research for the review examined trends in grant-giving foundations and trusts established over the past 20 years, and revealed 2020 to be the year that saw the highest number of grant-making foundations and trusts established since 2012. The years 2008-12 saw a significant increase in the number of grant-making foundations established, coinciding with the aftermath of the last economic crisis. 13 percent of all grant-giving trusts and foundations set up in England & Wales were established between 2008-12, and 17 percent of all grant-making charitable institutions expending over £1m in the last reported financial year were established between 2008-12.
What best reflects the modern boom in philanthropic giving is that 45 percent of all grant making foundations and trusts – 27,863 in total - were established over the past 20 years. 53 percent of grant-making foundations set up between 2001 and 2020 are geared towards supporting educational causes.
Of the foundations and trusts established in 2020, the majority have defined UK causes as the primary beneficiaries of their intended grant-making, while 655 foundations and trusts (38 percent) state that their funding is geared towards international causes. This is in contrast to 32 percent for the 20-year average and to the 21 percent of all 61,844 grant-giving foundations registered with the Charity Commission, suggesting there is an increased internationalization in the UK’s philanthropic sector in recent years.
Commenting on the research, the Cape Partnership’s Andrew Wigley said:
“While the registration of foundations and trusts does not provide any guarantee for the level of future funding, it does reveal an intention of philanthropic endeavour. The number of grant-making foundations and trusts is the highest since the aftermath of the last economic crisis. 17 percent of all grant-making charitable institutions expending over £1m in the last financial year were established between 2008-12.
“If the turbulent economic years of 2008-12 provides insights for the future, the pandemic of 2020 may be the catalyst for a golden era in British philanthropy”.
ENDS