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On Monday 17 October, Gus O’Donnell, former Cabinet Secretary, gave the keynote speech at the Community Foundation’s first in-person annual meeting since 2019. The Foundation also announced its new Cost-of-Living Fund to support local charities and community organisations across Tyne & Wear and Northumberland. The evening was hosted by Newcastle University at its Frederick Douglass Centre and sponsored by Lycetts.
Gus O’Donnell began by speaking about his time as Cabinet Secretary working with several Prime Ministers. He then turned to the current economic situation and the impact on charities, drawing on the work of the Law Family Commission on Civil Society which Pro Bono Economics Supports. Gus cited a recent YouGov report that found nearly half of UK charities will struggle to meet the growing demands placed upon them by people struggling to pay their bills. The situation will be exacerbated by rising inflation that will see £5.7 billion of total donations made to charities in the first six months of 2022 worth £500 million less by the end of this year. By 2024, the average £20 donation will be worth less than £15.
Gus called for a reassessment of civil society’s economic contribution to the UK. Current estimations put that contribution at 1% of the UK’s GDP. But, when volunteering and other activities are accounted for, Pro Bono Economics’ research puts it at 10% of GDP. On the importance of philanthropy, described calls from the Commission for a ‘philanthropy champion’ to act as a gateway between Government and the sector, and to highlight the vital role philanthropy plays in civil society and supporting the economic contribution of charities. He also argued that increased awareness of the difference philanthropy can make could help to close the ‘generosity gap’ among high earners. Most give less than 0.2% of their income – but raising that to 1% would see UK charities receive up to £1.4 billion in additional revenue each year. Better promotion of Gift Aid could also raise a further £380million since it doesn’t currently get claimed on a quarter of eligible donations.
Gus called on Government not to abandon levelling up and combating regional inequalities. He described the issue of ‘charity deserts’ – levelling up highest priority places where there are 28% fewer local charities per 1,000 people than in the lowest priority areas. Gus championed match schemes, especially those that incentivised place-based giving stewarded by institutions like community foundations. He concluded by calling for the adoption of wellbeing as both an explicit Government goal and a way of measuring the success of levelling up.
Community Foundation CEO Rob Williamson then announced the Foundation’s response to the cost-of-living crisis with its new dedicated fund. He said:
“We’re concerned that the current economic situation will make an already bad situation worse for people who are poor and vulnerable. But the very local charities and community organisations who are there to help will themselves struggle because of increased demand, rising costs, and the falling value of their income and reserves. We want to support these organisations to do what they do best: help people on the sharp end of the cost-of-living crisis. Because if these organisations can’t keep their lights on, people will be faced with nowhere to go for the vital help they’ll need.”
The Community Foundation’s trustees have started the fund with £100,000. The focus will be on organisations that have received grants from the Foundation in the past two years and which are working with particularly vulnerable people and communities. They will be invited by the Foundation to apply and priority will go to smaller organisations and those facing the most immediate pressure of rising demand and costs.
You can find out more about the fund here. Anyone wanting to support the fund can contact us or give via our JustGiving page here.
A recording of the AGM will be available shortly.