The untapped £11bn ‘goldmine’ charities are missing out on – Labour urged to act

Charities could benefit from an £11billion “jackpot” if the Government takes simple steps to kick-start giving in the UK, according to a major report.

The exodus of millionaires from Britain after Labour came to power could plunge charities into a funding black hole – but experts say there is an untapped “goldmine” which could turbo-charge good causes.

The Centre for Social Justice argues nearly £3.2billion in dormant funds and assets – financial products that have been left untouched – should be released for good causes and match-funded by philanthropists.

The influential think tank claims donors stand ready to “unleash a new wave of philanthropic giving across the UK”.

Nathan Gamester, of the Centre for Social Justice Foundation, said: “There is an untapped jackpot for charities just waiting for Government to unlock. We know that matched donations can provide a huge boost to funding opportunities and create massive benefits for charities.

“At the same time, the exodus of the wealthy is only going to hurt small charities the most.

Research suggests 10,800 millionaires left the UK last year – more than twice as many as in 2023. The new report warns that corporate giving by Britain’s biggest companies has also slumped, resulting in an estimated £164million in lost charitable donations.

It claims the number of non-government grants has fallen from nearly 100,000 in 2023 to barely more than 31,000.

The flight of potential donors means charities are often “increasingly dependent on a pool of regular high-net-worth individuals”.

But the Supercharging Philanthropy report states: “There is money out there if only the Government will articulate an exciting vision of what can be achieved, be clear it will be used to good effect, and create the conditions to find it.”

It cites research that matched donations are, on average, two and a half times larger than regular gifts.

Former culture secretary Baroness Morgan backed the report, saying: “The philanthropists I meet are ready to give, and small charities across the UK are raring to put their money to good use.”

The CSJ’s Mr Gamester insists people are ready and willing to give.

He said: [We] have helped to direct over £14million to frontline charities in our first three years, through advising private donors and administering trusts and foundations. We know the generosity is out there if the Government will only set clear direction and ambition.

“These charities are already suffering worst from an overall reduction in charitable donations. Government must do its utmost to help those on the frontlines of the fight against poverty.”