Just 3% of charities say corporates are excelling in meeting local needs when they support good causes, according to the research by giving platform Neighbourly.

“Billions of pounds are given each year to good causes by businesses in Britain and the fear is that the money could be having a greater impact,” it warned.

Its report into the research is called Giving Without Guessing and has been published in partnership with Lidl GB. It is based on analysis of indices of deprivation published by the government and insight from frontline charities.

It found that corporate giving is missing “hidden poverty pockets” as more than eight in ten of England’s poorest neighbourhoods “remain trapped in severe deprivation”.

Smaller charities being overlooked

Businesses are also overlooking “smaller, less visible charities”, according to almost all (95%) of the good causes surveyed by Neighbourly.

“Blanket giving models are increasingly ineffective: businesses relying on familiar causes or high-profile charity brands risk missing smaller “last mile” organisations that are closest to the people who need help most,” say researchers.

Corporates are being urged to make better use of mapping poverty to tackle pockets of hardship they are missing in their support.

Better matching between businesses and local charities is also needed to improve the type of support on offer, including offering surplus products, funds, skills or volunteer time.

Support should be better measured, add researchers, to bolster social value reporting.

“Businesses want their community investment to make a real difference, but too often they are giving without the full picture,” said Neighbourly chief executive Steve Butterworth.

“Need is not always where people expect it to be - it can be hidden inside apparently prosperous areas, masked by regional averages, or concentrated in tiny neighbourhood pockets that conventional giving models simply do not see.”

Hyper-local data

Lidl GBs Feed it Back programme with Neighbourly is highlighted in the report for using data to meet local need.

This involves "pairing operational expertise with hyper-local demographic data and a knowledge of the frontline needs of grassroots organisations", says their report.

Lidl GB head of sustainability Matt Juden added this help's link stores to “trusted good causes" to direct surplus food, customer donations and funding "where they can make the greatest difference”.

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