Trusts are giving more despite downturn

Top trusts and foundations are giving more money despite a drop in income, according to research from the latest edition of The Guide to the Major Trusts, an resource for charity fundraisers published by the Directory of Social Change (DSC).

Despite a collective reduction in income and around £4 billion being wiped off the value of their assets, the top 400 UK trusts awarded a combined total of around £2.53 billion in 2007/08, the year for which most recent figures are available.

This is a relatively modest increase compared to the £2.3 billion given in the eleventh edition (largely 2005/06 data) although significant given the current difficult economic climate.

"The research we did shows most trusts are maintaining their level of spending, at least in the short term, and would rather dip into their reserves if necessary to support their beneficiaries who are largely small to medium-sized charities," said Tom Traynor, co-author of the guide.

Much of the increase in grantmaking shown in this edition of the Guide is due to the impressive work of the Wellcome Trust, whose grantmaking rose from £324.7 million in the last edition to a staggering £598.5 million in this edition.

Collectively, the top 25 trusts increased their giving from around £959 million in the previous edition to £1.23 billion in the new edition.

These figures are from the start of the economic downturn, so the full picture of how the recession has affected grant making from these funders may not be clear for several years.

However, DSC research suggests that grantmakers want to shield their beneficiaries from the worst effects of the recession, as the following comments, taken from the annual report and accounts of two of the trusts featured in the Guide, indicate:

"We are cautious of what may lie ahead for our investments but have taken a decision for the coming year to maintain spending plans.'

"Despite the current difficulties in the financial markets, the trustees aim to maintain annual income levels so far as is possible and to consider the widest range of charitable activity consistent with their objectives and their grantmaking policy."