Written evidence submitted by the Centre
for Charitable Giving and Philanthropy (CGAP)|
This paper presents headline quantitative findings
from new research on the amount and nature of funding for international
development and activities contributed by private charitable UK
trusts and foundations, which has been commissioned jointly by
The Nuffield Foundation, The Baring Foundation and Paul Hamlyn
The work is being led by Cathy Pharoah, Professor
of Charity Funding, Co-Director, Centre for Charitable Giving
and Philanthropy (CGAP), Cass Business School.
This report has been compiled specifically for the
interests of the Select Committee, drawing on data being prepared
for a larger report which will also discuss factors which motivate
trust and foundation interest in funding international development
and related issues, and key trends and approaches.
The results show that international development and
related causes is an increasingly important funding theme amongst
UK charitable grantmaking trusts and foundations, both large and
small. The group of trusts identified as funding above £50k
in this area represents almost three-quarters of the income value
of grantmaking trusts in the UK.
Main quantitative findings include:
annual value of current spending by charitable grantmaking trusts
and foundations on international development and related causes
is estimated at around £290 million.
is equal to around half of DFID total spending through NGOs.
trusts have been identified as making grants above a total value
of £50k per annum for international development and related
causes in 2009-10 (listed in report).
on international development causes represents 13% of the total
charitable spending amongst the trusts which fund this area, and
9% amongst all UK grantmaking trusts.
region attracting the highest number of trust funders is Africa
(37%), in particular East Africa. This is followed by Asia (23%).
interests are extremely diverse, and fund a wide range of subject
areas; direct health care and formal education attract the highest
number of trust funders (12% each), and sustainable economic/agricultural
development and investment attracts 10%, followed by utilities
and infrastructure at (%).
1.1 Outline of content and context of this
This paper presents the headline findings from new
research on the amount and nature of funding for international
development and activities contributed by UK trusts and foundations,
which has been commissioned jointly by The Nuffield Foundation,
The Baring Foundation and Paul Hamlyn Foundation. The work is
being led by Cathy Pharoah, Professor of Charity Funding, Co-Director,
Centre for Charitable Giving and Philanthropy (CGAP), Cass Business
School. Professor Pharoah is a leading expert on charity data
on the UK, who publishes annual tables and analysis of giving
by the major charitable trusts and foundations, and has carried
out several studies of grantmaking by charitable trusts and foundations.
A full report will be published later this Autumn. The project
is announced on www.cgap.org.uk/news/101/76/New-study-of-UK-trust-and-foundation-funding-for-international-development.html.
Addressing needs within an international context
is an important aspect of the funding programmes of many UK trusts
and foundations. Some are devoted wholly to international working,
while others include an international element within a generic
funding programme. The majority fall into the latter category.
The new data is being made available to the Select
Committee ahead of formal publication, because it was felt that
it would be relevant and useful to its inquiry into Private Foundations.
The study updates previous research commissioned by the Nuffield,
Baring and Paul Hamlyn Foundations, and published in June 2007
under the title 'Going Global'. Since this earlier study, it is
notable that a number of new trusts and foundations which fund
internationally have emerged, including the Children's Investment
Fund Foundation, The Waterloo Foundation and The Ashmore Foundation.
Data for the research has been drawn from figures
published in the audited annual reports and accounts which foundations
submit to the Charity Commission. International funders were identified
using relevant directories. (See References section at end of
paper) Published information is being supplemented with interviews
with a balanced selection of funders of different sizes and with
Foundations publish their annual accounts at different
times of the year. Most of the data used in this study relates
to funding spent in the fiscal year 2009-10, or the calendar years
2009 or 2010.
All reasonable efforts have been taken to compile
reliable figures for the amount of funding which foundations devote
to international grantmaking, but as foundations vary in the amount
of detail they publish on spending by programme area, in some
cases best estimates have to be used. As the full report is still
being completed, it is possible that there may be some minor variations
between this report and the final figures.
1.3 Note on definitions
is used in the report to refer generically to activities in
developing countries and emerging economies encompassing growth,
health, education, gender, disaster relief, humanitarian aid,
economic and environmental
sustainability, and associated research.
Trusts and foundations refers
to privately-funded independent grant-making charities.
The phrase is shortened at times in this paper to 'trusts'
for convenience. Figures in this study include the Big Lottery
2. SCALE OF
UK CHARITABLE TRUST
2.1 Total trust funding for international
Ninety (90) trusts and foundations were identified
as making international grants worth around £50,000 per annum
or more. These are listed in Appendix 1.
International development and related funding by
these trusts and foundations was estimated to be worth around
£242 million in 2009-10.
It can be estimated that at least another 20% of
this amount, around £48 million, is given by the smaller
trusts not included in the study, and those on which there is
little published information.
This means that total charitable trust and foundation funding
for international development is estimated at around £290
million per annum.
2.2 Place of international development in
UK trust funding as a whole
Trusts and foundations which fund internationally
contain both the UK's very largest and smallest charitable funders.
International foundation funders as a group, however,
are weighted towards the larger trusts and foundations, and represent
around three-quarters of all UK trust and foundation grantmaking
by value (74%), as can be seen from the table below. (This is
based on published figures on the top 500 grantmakers, which represent
the majority of UK funding:see Pharoah, 2011).
Funding for international development and related
causes represents an average 13% of the total annual charitable
expenditure of £2.3 billion by trusts and foundations involved
in international funding. It is equal to 9% of all trust and foundation
SUMMARY DATA ON CHARITABLE TRUST AND FOUNDATION
|Trusts which fund internationally
||All trusts and foundations*||%
|Total grantmaking||£2.3 billion
|International development grantmaking||£290 million
|International dev't grants as % of total grantmaking
|Range of international grants as % of grantmaking
* Figures for top 500. (Pharoah, C, 2011 ibid)
There is, however, a wide range in the proportion of funding dedicated
to international development. For several, it represented all
(100%) of their charitable spending, while for others it was just
1%. The graph below illustrates the range. There is large cluster
of funders at the top end of the range for whom international
funding represents all, or almost all, of their funding. While
13% of international funders' funding overall went to international
development, the average proportion of funding dedicated to it
was 45%. This shows that international development tends to have
a fairly high priority amongst those who support it.
DISTRIBUTION OF PROPORTION (%) OF FUNDING DEDICATED TO
INTERNATIONAL DEVELOPMENT ACROSS 90 TRUSTS
2.3 Trend for smaller trusts to specialise
The result also shows that smaller trusts tend to devote a higher
proportion of their funding to their international development
work. This is illustrated in the graph below, which ranks trust
by income size. The trend-line shows clearly that the proportion
(though not the amount) of funding declines as trust income increases.
RELATIONSHIP BETWEEN SIZE OF TRUST (BY INCOME), AND PROPORTION
OF FUNDING DEVOTED TO INTERNATIONAL DEVELOPMENT CAUSES
2.4 Distribution of total funding for international development
by trust size
Although smaller organisations tend to dedicate a higher proportion
of their funding to international development, there is a strong
direct relationship between amounts given and size of trust and
foundation by income. The proportion of the total amount given
to international development by trusts in particular income-bands
is shown in the table below.
|Trust Income Band||
||% of total international funding|
|> £1 million||
2.5 Trust funding for international development in context
Trust and foundation funding for international aid forms just
one part of the bigger picture of the total flow of international
development support, which includes government aid, foreign direct
investment, remittances from migrant labour and international
non-government organisations, as set out in the earlier report
(Las Casas and Fiennes, 2007).
The table below places the contribution of trusts and foundations
within the bigger picture, setting out some top-level figures
for UK and international government support. (It excludes the
GOVERNMENT AND VOLUNTARY FUNDING FOR INTERNATIONAL AID
|Total DAC country ODA||$129 billion
|Total UK ODA||£7.4 billion
| Total DFID Expenditure||£6.4 million
| Voluntary grants||£256 million*
|General public, corporate and legacy donations
||£1 billion approx (Estimated**)|
|UK Trusts and foundations||£290million
Sources: DfID SID 2010: OECD, IDS, 2011.
* 2008 figure
** Based on grossing up figures for donations to the major international
fundraising charities, Pharoah, 2011, ibid.
2.6 Funding relationships between DfID, trusts and international
Both trusts and foundations, and DFID, provide funding to UK international
aid charities and other civil society organisations who play an
intermediary role in helping developing countries, and directly
to non-government organisations in developing countries. Recent
figures for DFID support to civil society or non-government organisations,
which represents around 9% of its spending, are set out below.
In contrast, trusts and foundations provide a very high proportion
of their funding to civil society organisations, although figures
for this are not available. Other important recipients include
organisations such as universities and hospitals. The figures
show that UK trust and foundation funding is equal to just under
half of all DFID funding for civil society.
DFID SPENDING THROUGH NGO 2009-10
|DFID funding to UK NGOs.||£362 million
|DFID funding to all NGO funding ||£599 million
|UK trust and foundation funding to civil society
3. PATTERNS OF
UK TRUST FUNDINGREGIONS,
3.1 Challenges of classification
It was not possible within the resources of this project to analyse
in detail all of the grants given within the year of the study.
There are thousands of small grants, and generally only details
of the larger ones are given. To get an indication of trusts and
foundations' international funding priorities the main areas of
preference mentioned in annual reports was classified. The amount
of detail available varied, so the results should be regarded
as indicative. The picture of funding derived is consistent with
findings in other studies of grantmaking, as is noted below.
The classification system used was based on that developed for
a previous study of grants made by trusts and foundations, adapted
for the purposes of this project.
(Vincent and Pharoah, 2000)
3.2 Trust and foundation funding by region
Trust and foundation funding priorities by region is similar to
that of UK expenditure on international support. As the figures
below show, the broad distribution of the number of trusts who
fund particular regions is similar to the spread of gross public
expenditure. Africa appears to receive most support, followed
by Asia, and then the Americas.
|Total UK Bilateral Gross Public Expenditure %
|Developing countries (general)||
|* Number of trusts mentioning that they will fund this region|
** Total funding divided by % of trusts mentioning that they will fund this region
Source: SID 2010
3.3 Indicative distribution of trust funding by region
As noted, there is not enough information in trust and foundations'
annual report to allocate expenditure by region. However, if the
distribution of trusts saying they fund in particular regions
is applied to the value of funding, then an indicative allocation
of funds can be derived. This is shown below.
|Developing countries (general)||28
|* Number of trusts mentioning that they will fund this region.|
** Total funding divided by % of trusts mentioning that they will fund this region.
Source: SID 2010
3.4 Trust and foundation funding by detailed region
Priorities within regions are set out in the Figure below, which
gives the proportion of trusts and foundations willing to fund
particular sub-regions. East Africa emerges as the area of greatest
funding interest (22%), followed by South Asia (17%). The extent
to which funding interest in Eastern Europe has grown is also
illustrated by the 8% of trusts mentioning that they fund in this
DISTRIBUTION OF TRUST FUNDING BY REGION AND SUB-REGION
3.5 Trust and foundation funding by subject area
A very wide range of topic areas is funded by trusts and foundations,
as can be seen from the chart below, ranging across direct health,
care and welfare service provision, economic and infrastructure
development, poverty relief, civil society capacity-building,
disaster relief, humanitarian aid and peace and security. Areas
attracting highest numbers of funders were direct health, education
and welfare services. Sustainable economic and agricultural development
attracted 10% of funders, with utilities and infrastructure close
to this at 9% of funders.
PROPORTION (%) OF UK TRUSTS (BY NUMBER) FUNDING EACH SUBJECT
3.6 Trust and foundation international funding by beneficiary
Sometimes trusts and foundations indicate the groups they fund,
either in particular regions or as a main funding focus. The distribution
of numbers of funds stating they fund particular beneficiary groups
is set out below. The single largest category of beneficiary is
children and youth, with children representing almost three-quarters
of cases. The priority given to children reflects the findings
of a previous study which analysed a large sample of all grants
made by UK charitable foundations. (Vincent &Pharoah, ibid).
Within the women and families group, 70% were instances mentioning
A striking difference between the findings of the previous study
of all grants, and the study of international funders, is that
the proportion of grantmakers mentioning disadvantaged people
in the international study was twice the proportion found in the
study of all grants. (18% compared with 9%) This is likely to
reflect funders' concern about the scale of disadvantage in developing
NUMBER OF TRUSTS BY BENEFICIARY GROUP FUNDED
3.7 In conclusion
This report has been compiled specifically for the interests of
the Select Committee, drawing on data prepared for a larger report
which is being prepared and which, alongside these statistics,
will discuss the factors which motivate trust and foundation interest
in funding international development and related issues, some
key trends and approaches taken, and examples of projects.
The full report will be published later this year.
Department for International Development (DFID). (2010) Statistics
of International Development 2005/06-2009/2010 (SID). ONS
Department for International Development (DFID). (2010) Statistics
of International Development 2010 (SID). ONS October 2010.
Directory of Social Change (2011). Directory of Grantmaking
Trusts. DSC. London.
Vincent, J and Pharoah, C. (2000) Patterns of Independent Grant-Making
in the UK. CAF. West Malling.
DFID Statistics on International Development 2005/06 -
2009/2010. Table 3.
DFID Statistics on International Development 2010. Table
Pharoah, C. (2011) Charity Market Monitor 2011.
OECD. Development Co-operation Directorate (DCD-DAC). International
Development Statistics (IDS)
CHARITABLE TRUSTS WHICH CURRENTLY FUND INTERNATIONAL
DEVELOPMENT AND RELATED CAUSES
Absolute Return for Kids
Allan and Nesta Ferguson Charitable Settlement
Andrews Charitable Trust
Big Lottery Fund
Brian Mercer Charitable Trust
Butterfield's Edward Johnson Trust
C B and H H Taylor 1984 Trust
Christian Response to Eastern Europe
Diana, Princess of Wales Memorial Fund
Elton John Aids Foundation UK
Euro Charity Trust
Gatsby Charitable Foundation
H C D Memorial Fund
Help the Hospices
Hilden Charitable Fund
Jephcott Charitable Trust
John Ellerman Foundation
Joseph Rowntree Charitable Trust
Maurice and Hilda Laing Charitable Trust
Mercury Phoenix Trust
Paul Hamlyn Foundation
R H Southern Trust
Relief Fund for Romania Limited
Saga Charitable Trust
Sigrid Rausing Trust
St Francis's Leprosy Guild
The Ajahma Charitable Trust
The Ashmore Foundation
The Audrey and Stanley Burton Charitable Trust
The Big Lottery Fund
The British Council for Prevention of Blindness
The Bromley Trust
The Cadbury Foundation
The Charles Hayward Foundation
The Children's Investment Fund Foundation UK
The Coltstaple Trust
The David and Elaine Potter Charitable Foundation
The Estelle Trust
The Father O'Mahony Memorial Trust
The Freemasons' Grand Charity
The H B Allen Charitable Trust
The Haramead Trust
The Indigo Trust
The Innocent Foundation
The Joffe Charitable Trust
The Kiawah Charitable Trust
The Leverhulme Trust
The Marr-Munning Trust
The Miriam K Dean Refugee Trust Fund
The Monument Trust
The Puri Foundation
The Reed Foundation
The Rowan Charitable Trust
The Rufford Foundation
The Sainsbury Family Charitable Trusts
The Scotshill Trust
The Scott Bader Commonwealth Ltd
The Scurrah Wainright Charity
The Sir Halley Stewart Trust
The Sylvia Adams Charitable Trust
The Trust for Education
The Waterloo Foundation
The Wellcome Trust
The William Leech Charity
The Zochonis Charitable Trust
Tisbury Telegraph Trust
Trusthouse Charitable Foundation
Vodafone Group Foundation
Westminster Foundation for Democracy
William Adlington Cadbury Charitable Trust
The Wood Family Trust
Zurich Community Trust
14 December 2011
1 This is based on a previous attempt to compile figures
for the total scale of charitable trust grantmaking in the UK,
and which is still the only data available. See Pharoah, C, and
Siederer, N (1997) "Numbers, income, grants and assets-new
estimates" in Dimensions of the Voluntary Sector 1997 (Ed
Pharoah, C). CAF West Malling. Back