Giving by FTSE 100 companies as a percentage of their profits has halved since 2009, research has found.

Their donations, grants and fundraising for good causes 17 years ago equated to 1.7% of pre-tax profits and amounted to £1.84bn.

But now they give just 0.8% of their profits to charity, amounting to just £1.69bn. This is despite their combined profits almost doubling since 2009, according to Charities Aid Foundation (CAF), which has carried out the research.

CAF warns that inflation has “exacerbated the decline further” saying that “to have kept up with inflation since 2009, donations would need to be 76% higher than current levels”.

It’s Corporate Giving Report also found that only 27% of all businesses support charities in anyway and only one in six give money. This is despite widespread support among staff for charitable activity by their employers. Two thirds want to see their bosses give more to good causes.

Customers also want firms to do more, with three in four saying they feel more favourable to businesses that “they can see doing good in their local areas”.

Around one in six businesses not giving to good causes say they do not have enough budget and more than half either do not see the benefit of donating to charity or had not considered it.

“When leaders put giving on the agenda, it becomes part of business strategy, culture and long-term planning, rather than something considered only when circumstances allow,” said CAF managing director Mark Greer.

He added: “The opportunity is substantial. Had every FTSE 100 company met best practice and donated 1% of profits last year, charities would have received around £1 billion more in funding, contributing to a stronger society that benefits businesses and the people in them.

“Government has its role in shaping a stronger culture of giving. But at a time when charities are experiencing declining donations and rising demand, it has never been more important for business leaders to step up and play their part.”

Among business bosses backing giving is Sean Windeatt, co-chief executive of BGC Group, which donates a day’s revenue to good causes each year.

“I know these are challenging times for many businesses,” he said.

“But the challenges are far greater for charities: when household budgets are squeezed, giving is one of the first things to go. When the public can't give what they used to, business has a role to play in helping to fill that gap.

"That doesn't have to mean simply writing a cheque. Give time, give skills, give a day. The companies that think creatively about giving are the ones whose people feel it most — we support charities our own employees choose, causes close to their hearts and their communities, and what comes back in pride and belonging is worth more than anything it costs.”

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