Only one in four British businesses are supporting charities, according to research by Charities Aid Foundation (CAF).

The worst performing region is the South East of England, where only around one in eight firms give to good causes.

In contrast two in five businesses in the North East of England give to charities, which is the best performing region.

CAF’s research has looked at whether firms are involved in volunteering, donating money and giving goods.

It found that an estimated £4.2bn was donated by British firms during 2024, with half given by FTSE 100 companies.

But giving by larger companies is falling, CAF warns.

Just 24 of the FTSE 100 gave at least 1% of their pre-tax profits to charity last year, down from 28 the previous year.

Also, cash donations from British businesses have seen “a significant drop” found CAF, with £300 million less given in cash last year, “equating to around 5,455 small charities going unfunded”, it added.

Just 3% of businesses in the South East give cash, compared to 31% of those in the North East.

CAF is calling on the UK government to put in reintroduce a mandatory requirement on firms to report corporate giving “to improve transparency and motivate businesses to donate to good causes and invest in communities”.

“If more UK businesses gave 1%, including all the FTSE 100, it could mean charities receive almost £5 billion in additional funding,” CAF said.

CAF chief executive Neil Heslop added “Corporate giving is not an optional extra. It is a cornerstone of responsible business that employees and customers expect.

“Yet, at a time when charities continue to face severe funding challenges, our research reveals that most British businesses are disengaged from meaningful community investment.

"Best practice for business is to commit to donating at least one percent of pre-tax profits. Across the country, there are great examples of businesses working hand in hand with charities in local areas, and demonstrating that sustained, purposeful giving is certainly achievable.

“Government also has a crucial role to play in fostering a renewed culture of giving and encouraging community investment from businesses to the places and communities they are a part of.”

Research by social value management platform What Impact recently found that two in five charities are struggling to attract corporate partners.

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