UK Grant-making Trusts and Foundations

Transcription

1 SECTOR INSIGHT UK Grat-makig Trusts ad Foudatios 2015 Tom Trayor Dr Catherie Walker dsc directory of social chage

2 Published by the Directory of Social Chage (Registered Charity o i Eglad ad Wales) Head office: Resource for Lodo, 352 Holloway Rd, Lodo N7 6PA Norther office: Suite 103, 1 Old Hall Street, Liverpool L3 9HG Tel: Visit to fid out more about our books, subscriptio fudig websites ad traiig evets. You ca also sig up for e-ewsletters so that you re always the first to hear about what s ew. The publisher welcomes suggestios ad commets that will help to iform ad improve future versios of this ad all of our titles. Please give us your feedback by ig publicatios@dsc.org.uk It should be uderstood that this publicatio is iteded for guidace oly ad is ot a substitute for professioal advice. No resposibility for loss occasioed as a result of ay perso actig or refraiig from actig ca be accepted by the authors or publisher. Prit ad digital editios first published 2015 Copyright # Directory of Social Chage 2015 The digital versio of this publicatio may oly be stored i a retrieval system for persoal use or storage. No part may be edited, ameded, extracted or reproduced i ay form whatever. It may ot be distributed or made available to others without prior permissio of the publisher. All rights reserved. No part of the prited versio of this book may be stored i a retrieval system or reproduced i ay form whatsoever without prior permissio i writig from the publisher. This book is sold subject to the coditio that it shall ot, by way of trade or otherwise, be let, re-sold, hired out or otherwise circulated without the publisher s prior permissio i ay form of bidig or cover other tha that i which it is published, ad without a similar coditio icludig this coditio beig imposed o the subsequet purchaser. The moral right of the author has bee asserted i accordace with the Copyright, Desigs ad Patets Act 1988 The publisher ad author have made every effort to cotact copyright holders. If ayoe believes that their copyright material has ot bee correctly ackowledged, please cotact the publisher who will be pleased to rectify the omissio. The moral right of the author has bee asserted i accordace with the Copyrights, Desigs ad Patets Act ISBN (prit editio) ISBN (digital editio) British Library Cataloguig i Publicatio Data A catalogue record for this book is available from the British Library Cover ad text desig by Kate Bass Typeset by Marlizo Services, Frome Prit editio produced by Page Bros, Norwich

3 Sector Isight: Trusts ad Foudatios Cotets Cotets List of figures List of tables About the authors About the Directory of Social Chage Ackowledgemets Preface Foreword Executive summary Overview ad cotext About the data v ix x xi xi xii xiii xiv xix xxii Chapter 1: Fiacial aalysis 1 Chapter 2: 1.1 Key fidigs Assets, icome ad grats Discussio ad coclusios 6 The geographical distributio of gratmakig Key fidigs Itroductio Grat-makig to the UK versus overseas Grat-makig withi the UK Discussio ad coclusios 42 Chapter 3: Causes ad beeficiaries supported Key fidigs Itroductio Causes supported Beeficiaries supported 53 iii

4 Sector Isight: Trusts ad Foudatios Cotets 3.5 Causes ad beeficiary groups aalysed i combiatio Discussio ad coclusios 62 Chapter 4: The regioal fudig map of causes Key fidigs Eglish regios 68 Chapter 5: Survey aalysis Key fidigs Orgaisatios or istitutios supported Usolicited applicatios Iformal cotact Duratio of grat Reviewig guidelies Types of fudig Applicatio deadlies Average time to pay grat Average grat rage Percetage of grats to ew applicats Level of applicatios Persoel Feedback for usuccessful applicats Applicatios received Historical compariso Discussio ad coclusios 91 Refereces 92 The last word 99 iv

5 Sector Isight: Trusts ad Foudatios About the authors About the authors TOM TRAYNOR Sice joiig the Directory of Social Chage (DSC) i 2001, Tom has researched ad authored umerous publicatios icludig The Guide to Major Trusts, The Directory of Grat Makig Trusts ad The Fuders Almaac. I additio he has led DSC s Research Team i the delivery of its core research projects, guides, directories ad fudig websites, which provide details of thousads of fuders to volutary sector orgaisatios lookig for fudig to support their cause. As Head of Research he is resposible for deliverig DSC s research strategy, developig research parterships with fuders ad other research orgaisatios ad leadig DSC s Sector Isight ad bespoke research projects. He has a BA (Hos) i Literature ad Media ad Cultural Studies ad a MA i Research Methods i Sociology ad Social Policy. He has bee a trustee of a local arts orgaisatio ad a grats assessor for a commuity foudatio, ad also voluteered for a educatioal charity ad a commuity media project. He has a kee iterest i trusts ad foudatios, philathropy ad social policy ad has writte ad commeted o a rage of volutary sector issues over the past 14 years. DR CATHERINE WALKER Catherie has worked i the UK volutary sector for the last 16 years, icludig with Charities Aid Foudatio (CAF) where she was Head of Research from 1999 to 2006, ad DSC where she was Head of STEAM (Sector Treds Evidece Aalysis & Metrics) from 2010 to I betwee these roles Catherie worked as a freelace cosultat, icludig with Dwr Cymru/Welsh Water, NCR Kowledge Lab, l Uiversité Paris Descartes (Paris 5), CAF, Barardo s ad NESTA. Catherie has a PhD i Ecoomic Psychology, was a Associate Editor of the Joural of Ecoomic Psychology ad is a logstadig member of the Iteratioal Associatio for Research i Ecoomic Psychology. She is also the author of several well-kow books ad reports o givig, icludig A Lot of Give, The Compay Givig Almaac, UK Givig, Charity Treds, Growig ito Givig ad Makig Time for Charity. I 2015, Catherie fouded The Researchery: a research cosultacy which specialises i research i the UK volutary sector. She is a experieced freelace project maager with expertise i the fudig eviromet for the UK volutary sector ad is passioate about evidece-led social chage for a better society. x

6 Sector Isight: Trusts ad Foudatios Executive summary Executive summary The safety et of the welfare state i the UK is uder pressure followig the fiacial crisis ad the retractio of may state services; at the same time, the volutary ad commuity sector has foud itself i a positio where it has greater ifluece ad resposibility withi society, both implicitly ad explicitly. The volutary ad commuity sector i the UK is extremely diverse, but a key elemet withi the sector is the grat-makig trusts ad foudatios that provide a sigificat proportio of the fudig to eable the work of other charities to be udertake. These fuders use their moey to support service delivery charities, commuity groups ad other orgaisatios that work with some of the most disadvataged, vulerable ad socially excluded people i society. It is worth otig that ot all trusts ad foudatios make grats some are service delivery charities, NHS trusts ad thik taks, for example but i this report we explore the larger body of grat-makers because of their uique role i the volutary sector. Eve withi gratmakig trusts ad foudatios there is great diversity so a descriptio of this ladscape is imperative for a rage of stakeholders to gai a deeper uderstadig of what these charities do i practice where ad how they sped their moey ad for what purposes. This report aims to provide a isight ito the operatioal activities ad impact of UK gratmakig trusts ad foudatios. It provides a detailed aalysis of their assets, icome ad charitable expediture i the form of grats, where their fudig is give, who their beeficiaries are ad the causes they have supported. Also icluded i this report are the fidigs from a survey that provide a deeper uderstadig of the practices of these charities, the challeges they face ad their wider operatig eviromet. For the purposes of this report we have take a sample of almost 2,500 grat-makig charities, as featured i the curret editio of our Directory of Grat Makig Trusts (23rd ed). KEY FINDINGS How may grat-makig trusts ad foudatios are there ad how much do they give? DSC estimates that there are aroud 8,000 practisig grat-makers curretly i the UK The total value of grats awarded by these fuders is i the regio of 3 billio each year, which represets almost 8% of the volutary sector s icome I this report we cover the top 2,500 grat-makers, givig a total of aroud 2.65 billio, which represets aroud 88% of all grat givig i the UK What is the fiacial situatio of the grat-makers? Ad how has this chaged durig the global ecoomic crisis? The assets held by all of the trusts ad foudatios i our sample total almost 45 billio Actual grat spedig has recovered to pre-recessio levels xiv

7 Sector Isight: Trusts ad Foudatios Fiacial aalysis CHAPTER ONE Fiacial aalysis 1.1 KEY FINDINGS The assets held by all of the trusts ad foudatios i our sample total almost 45 billio 1 Actual grat spedig has recovered to pre-recessio levels 2.65 billio i total was give i grats 2 Fuders typically have assets of less tha 10 millio ad make idividual grats averagig aroud 10,000 First we look at the fiacial positio of the fuders i our sample usig the latest fiacial iformatio available durig the time our research was coducted (mostly the 2011/12 ad 2012 fiacial years); the we take a logitudial approach to aalyse the fiacial treds over the course of the past seve years. 1.2 ASSETS, INCOME AND GRANTS Figure 1.1 shows the total assets, icome ad value of all of the grats made by the fuders i our sample i Figure 1.1 Total assets, icome ad grat expediture of the trusts ad foudatios i the sample, 2012 billio Total icome for the sample amouted to 9.7% of the value of total assets, 4 with grat expediture represetig 60.6% of their total icome. Amog the largest 400 gratgivig trusts ad foudatios i our sample, grat expediture represeted just over 72% of their icome Assets 4.37 Icome 2.65 Grats 1 Aroud 29% of this figure is accouted for by assets held by the Wellcome Trust. 2 Just over 19% of this figure is accouted for by grats made by the Wellcome Trust. 3 Aroud 90% of the figures come from the 2011/12 or 2012 fiacial years. 4 Broadly speakig, this level of retur o assets (ROA: a profitability ratio used to measure the performace of compaies or ivestmets) is cosidered by aalysts to be good, although there are a umber of factors such as sector ad whether assets are i the form of property or cash that affect what is cosidered acceptable performace. Also ote that the majority of these assets are held by the top 100 trusts ad foudatios. 1

8 Sector Isight: Trusts ad Foudatios Fiacial aalysis While some trusts ad foudatios i the sample have substatial assets, icome ad grat expediture, most fuders have more modest meas. The top 20% of trusts i our sample, selected accordig to assets, hold aroud 93% of the assets by value ad roughly 80% of the total icome ad grat expediture. Aroud 80% of the sample have assets of less tha 10 millio, ad a icome ad total grats of less tha 300,000. Figure 1.2 shows the fiacial characteristics of a typical fuder i our sample. 5 I additio to the assets, icome ad total grats of the fuders i our sample, the data gathered from our survey idicates that the average size of idividual awards is less tha 10,000 (see Chapter 5 for further details). Figure 1.2 The fiacial positio of the majority of the trusts ad foudatios i the sample Assets: < 10 millio Icome: < 300,000 Total grats: < 300,000 Average grat: 10,000 or less Assets: tred Trust ad foudatio assets ca be i the form of cash i the bak o which iterest is paid, property that geerates retal icome ad stocks ad shares that are traded i various fiacial markets. May large foudatios have permaet edowmets which are used to geerate a icome to fulfil specific charitable objects ad to have a public beefit, with trustees beig custodias of these fuds. 6 These assets allow foudatios to be idepedet ad to provide crucial fudig to charities, commuity groups, istitutios ad projects that beefit a sigificat proportio of the populatio, ofte those who are the most disadvataged ad margialised i society. However, these assets ad ivestmets are vulerable to prevailig ecoomic coditios, ad, owig to the fiacial crisis of 2007/08, the value of assets decreased i real terms by almost 8% over the six years prior to 2011/12 compared with the value i 2005/06. Figure 1.3 shows the actual value of the total assets for 5 This is illustrated usig the modal average values for assets, icome ad total grats, ad the average grat size idicated by our survey respodets (see Chapter 5). 6 For a detailed discussio ad aalysis of edowmets, see Jekis