Three in ten companies donating 1% of profits to good causes, figures suggest

Research is suggesting that three in ten (31%) of companies gave or have pledged at least 1% of their pre-tax profits to charities in the UK.

Of 223 companies that provided giving data to researchers, 70 said they have given or pledged this proportion of their profits to good causes.

This equates to £230m in cash and in-kind donations from those companies surveyed, mainly based on figures provided for the years 2020 and 2021.

The findings have emerged in Directory of Social Change’s Guide to UK Company Giving, which includes information provided by more than 400 firms and 160 associated grant making charities.

“When we’re talking about companies who can make huge pre-tax profits each year, relatively small commitments (1%) can have a large cumulative effect (£230 million),” said DSC.

It said that “despite the difficulties that companies have faced over the past two years, they continue to inject a significant amount of cash and in-kind donations to the charity sector each year”.

“The 1% Club’, is a great example of corporate organisations supporting charities and helping those who are facing the most challenging of times,” it added.

Have you ever wondered how much companies give to #charity each year?

In our latest blog post, DSC's Senior Researcher, Ian Pembridge, reveals what The Guide to Company Giving tells us about corporate giving.https://t.co/gEtI6EmGNy
— DSC (@DSC_Charity) May 3, 2023

Globally the Pledge 1% campaign is calling on firms to ensure they are earmarking this proportion of their profits for good causes.

It says to firms that the commitment “is an easy way to leverage a portion of your future success to support non-profits in your community.

Among examples DSC gives of firms meeting this pledge is the Nationwide Building Society as part of its commitment to tackling housing issues and developing money skills among young people. It makes grants of up to £60,000 to charities, housing co-operatives and community land trusts “to make positive changes in their local areas". In 2021/22 DSC found that £4m was awarded to 94 housing projects in the UK.