Place-based funders a solution to the uneven geography of charitable giving
General Practitioner, Dr Julian Tudor Hart, once argued that the availability of good healthcare was inversely related to need. In other words, people who were sicker were less likely to be able to access good healthcare (1971). It’s hard to not see this as a problem. If need is greater, the supply of whatever can fix that need should also surely be greater?
Although Dr Hart was writing in 1971, his words resonate today with the release of a report from the Centre for Cities documenting the geography of charitable giving in the UK. On the one hand, the propensity for charitable giving appears to be higher in the Greater South East than elsewhere. Yet on the other, the report finds that some of the least affluent cities in the UK donate more to charity per head than the more affluent areas.
A ‘giving gap’, as they define it, also emerges when comparing charitable giving in different cities for people earning average incomes. Citing suburbs of Northern Leads and Croydon – each where average incomes are £26,000 – the report finds that people in Leeds are twice as likely to donate to charity as those in Croydon.
Despite the relative differences found, in absolute terms income is still the most important factor in shaping the value of donations given. Even though people in relatively poorer or less affluent areas give a higher share of their income, the total received is still less because income levels are lower.
For charities working in anti-poverty and anti-inequality spaces, where higher levels of socioeconomic deprivation tend to equate with higher levels of need, this uneven geography of giving matters. This is made more complicated by the fact that the donors in some more the less affluent areas of the UK – where certain types of need are inevitably greater – are less likely to give to charities tackling local issues. Animal welfare and environmental charities are more popular causes for charitable giving in areas which higher levels of deprivation.
Crucially, the report concludes that the geography of charitable giving is mainly driven by local giving ability, which is limited where need is often highest.
These conclusions are probably no surprise to many reading this, but it is the solutions we should focus on.
In an era of ‘levelling up’, the suggestions made by the Centre for Cities are significant:
Match-funding by government to incentivise charitable giving to areas of high-need.
We know the value of matched funding. The success of our winter campaign, generously supported by Together, is in part driven by the public knowledge that for every £1 they donate, the first £20,000 are matched by an external organisation.
Use local knowledge of local need to target charitable giving to maximise the impact of (relatively) smaller pools of donations, funding local frontline charities well-positioned to deliver effective programmes, building their capacity and capitalising on collaboration and knowledge-sharing.
We know this works. Greater Manchester Mayor’s Charity are named-checked in the report as a successful example of this model. We were set up to support the pioneering A Bed Every Night scheme, and have expanded our grant-making remit to enable more of the incredible work already delivered across the city-region, with a focus on homelessness and specifically for the benefit of the inhabitants of Greater Manchester. We are uniquely positioned to maximise the impact of your donations and amplify the invaluable work and initiatives of all working to tackle homelessness and end the need for rough sleeping in the city-region.
“In a survey commissioned for the report, 56 per cent of people said a similar fund in their area would encourage them to give more to local causes”
Levelling-up charity partnerships linking larger national charities to local place-based organisations, helping to ensure donations from places with the greatest capacity to give are channelled towards areas with the greatest need.
Collaboration is central to everything we do, whether within the city-region or more broadly. Our partnerships with national charities emphasise spotlighting good and innovative practice that can help to reduce risk of homelessness, and relieve the effects of homelessness. For example, an upcoming edition of our policy roundtable series partners with Centrepoint to spotlight one of their solutions to youth homelessness.
We welcome all charity partnerships that can expand on this knowledge sharing and help ensure funds are effectively distributed to achieve maximum impact for people and places most in need of support.
The findings of this report are testament to the value of the model we operate at Greater Manchester Mayor’s Charity, but also a stark reminder of the challenges we and all charities face in fundraising.
How can you help?
As an individual: donate today or set up a monthly direct debit.
As a business: nominate us a your charity of the year, set up a corporate gift, or arrange a meeting to develop a more strategic partnership.
As a national charity or foundation: Get in touch today. If you prioritise tackling homelessness and want to see the most impact for your funds, we can work together to get that money to where it is needed in Greater Manchester, and collaborate to ensure innovative and pioneering practice continues to characterise the city-regions approach to homelessness prevention.
Further Reading
Hart JT (1971) The Inverse Care Law. The Lancet, 297 (7696): p.405-412.
Johnson R (2024) Donation Nation: The Geography of Charitable Giving in the UK. Centre for Cities. Available at: Centre for Cities