With social value now driving business decisions, direct giving is no longer a given. Here’s why the sector must rethink its approach to corporate partnerships, writes corporate fundraising specialist, Rachel Holborow.

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Earlier this month, the Charities Aid Foundation (CAF) released its latest report on corporate giving. The findings should give us pause: corporate giving has stalled, part of a longer-term pattern of decline in real terms. On the surface, this looks like another sign that businesses are tightening their belts. But when set against the backdrop of a broader cultural shift, from corporate social responsibility (CSR) to social value, the picture becomes more complex.

From CSR to social value

The CSR era was built on the principle that businesses should “do the right thing.” Philanthropy was seen as a moral duty: companies supported charities, offered volunteering days, or raised funds because it was part of being a good corporate citizen. There were plenty of critiques, of course, CSR was sometimes accused of being a PR exercise, but the ethos created space for genuine giving.

Today, we’re increasingly seeing the driver change. With the rise of social value, particularly through public sector procurement rules, businesses are increasingly judged not on what they give away, but on how they can demonstrate measurable social impact within their core operations. Social value has increasingly become a competitive advantage. A way for companies to strengthen bids for contracts, alongside their role in supporting communities.

Why giving is stalling

This shift can help explain why direct corporate giving is under pressure. If impact is measured through contract compliance, philanthropy becomes harder to justify. Investment that might previously have supported charities is now going into apprenticeships, carbon reduction, and supply chain diversity - all valuable initiatives that strengthen business and society, but which may reduce the pot of funding available for direct charitable giving.
As a result, direct giving is often no longer at the heart of how companies demonstrate responsibility. For charities, that can mean fewer unrestricted funds, fewer long-term partnerships, and fewer opportunities to innovate.

A risk to charities and communities

The risk is clear: if philanthropy becomes a by-product rather than a priority, charities lose out on resources that were never tied to procurement frameworks. Communities may also feel the change, as some funding that once went to grassroots organisations is redirected into business-led initiatives - valuable in themselves, but different in focus.

The untapped opportunity for the sector

But there is another side to this story, and it’s one the charity sector has been slow to grasp. Social value is not just a corporate compliance agenda; it is also a funding opportunity for charities.

In research I’ve been conducting (report coming in October), ESG professionals have been candid: charities are leaving money on the table. Too few people working in the sector understand how the social value framework operates, and how it can be leveraged to unlock funds. For businesses bidding on contracts, the need to demonstrate measurable community benefit is real. Charities, with their expertise, networks, and legitimacy, are natural delivery partners, but only if they know how to position themselves.

This is the gap. Right now, there are not enough charity professionals who are fluent in the language of social value. The sector has invested heavily in corporate fundraising teams over the years, but not in building the knowledge and skills required to sit at the table when social value is discussed. That is a missed opportunity.

The solution? Social value literacy. Charities need to upskill fundraisers and leaders so they can engage with businesses not just as recipients of donations, but as partners in delivering measurable impact. By reframing partnerships around co-created social value outcomes, charities can tap into a funding stream that is already there, embedded in corporate contracts.

Looking ahead

CAF’s report may feel like a warning sign. But it could also mark a turning point. If the charity sector embraces social value, it can be an active partner in shaping the next generation of corporate responsibility.

The opportunity is clear: those who understand and can deliver social value will thrive. Those who ignore it may find themselves left behind, watching corporate giving continue to decline.
True leadership, in business and in the charity sector, means adapting to change without losing sight of purpose. Social value may have reframed the rules of the game, but it hasn’t removed the need for genuine impact. For charities, the challenge now is to step up, learn the language, and claim their place at the centre of this new era.

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