The growth of US style giving networks could help drive philanthropy among younger generations, according to new research.
London gives around £5.6 billion ($8.5 billion) a year in cash donations to charities but a new generation of funding networks could significantly fuel this figure, according to a report by City Philanthropy.
The report highlighted opportunity for further giving, noting that London could generate £20 million in charitable funding a year through donor-led networks such as BeyondMe and City Funding Network that are growing in popularity. CFN's combined funding networks have brought together over 6,000 people to raise £8 million for social change charities. There are currently around 80 giving networks across the UK and Ireland, according to City Philanthropy.
“Representing 29 per cent of all UK giving, London is more than keeping pace with its contribution to UK GDP at 22 per cent. But London is also home to many of the UK’s wealthiest people so we need to raise the bar on what we expect, and ensure that the City fulfils its potential as a hotspot for philanthropy,” said Professor Cathy Pharoah of Cass Business School’s centre for charitable giving and philanthropy.
Of note, over four-fifths of members of giving networks in London would like to use their skills and professional experience to make a difference. For three-quarters of network members, supporting charitable causes has improved their own leadership and motivational skills.
“We know that giving networks are well-suited to the city where there is a concentration of businesses, young workers and charities, and where wealth and need exist side by side,” said City Philanthropy’s Cheryl Chapman.
“There is an opportunity to really grow this millennial-led movement and we are calling on London’s businesses to support giving networks as part of their CSR commitment and help them achieve their potential.”