UK donors and communities are determined to drive philanthropy forwards to tackle the root causes of social inequity and climate change in the face of today’s financial turmoil, according to a new report published by UKCF.

UK Community Foundations (UKCF) has published its annual report, ‘Philanthropy 2023’ which highlights the determination of UK communities to overcome the financial crisis and the root causes of social inequity through local philanthropic action.

Increasingly, individuals and households are finding themselves in need of support from charities and funders – some for the first time in their lives. Philanthropy 2023 looks into the root causes of the rise in demand for frontline services and the barriers that charities themselves are having to fight through to provide the necessary support.

Continual financial inequalities and affected mental health from the Covid pandemic are some of the issues highlighted in the report as having led to the increase in demand for local charitable services in 2023. It goes on to note that, according to a survey conducted by the National Council for Voluntary Organisations (NCVO), one in five charities are having to reconsider keeping their vital services open due to their own financial difficulties. At Sussex Community Foundation, we are seeing the reality of these closures on the ground.

Together, UKCF members have distributed over £170.6 million – 40,804 grants – to charities and voluntary organisations in the financial year 2022-2023. Regional insights show that, while the resilience of community-focused organisations has not faded, there is still so much to be done to improve social equity at a local level.

Rosemary Macdonald, CEO at UKCF, said:

“Recent times have been demanding for all charities. Covid, followed by the financial crisis, has seen the necessity for charities continue to rise while local charity provisions have been forced to shrink. The predicted impact of charity closures will no doubt affect our underrepresented and minoritised communities the hardest – something we cannot let happen. As a sector, we must ensure these vital services continue to be there for everyone who needs them.”

The report also refers to the long-term potential of ‘place-based philanthropy’, marking it as ‘a valued addition’ to public services in reducing systemic inequity and improving the quality of life in UK communities. It illustrates the merit of convening different bodies of society; bringing together funders, grassroots community groups, local authorities, corporates, financial services, social enterprises and other decision makers, to develop philanthropic opportunities that explore and tackle areas of inequality and climate change.

The UKCF network is collectively managing over £811 million in endowments, being invested by communities for communities. This has risen by 14% since 2020, showing a drive for more sustainable support at a local level. The report explores the promising landscape of place-based philanthropy, where building community endowments ensures a long-term revenue stream, stating ‘the potential of new philanthropic opportunities by unlocking dormant trusts and assets is huge’.

Supporting communities in regaining resilience for the future is high on the agenda for Sussex Community Foundation. Kevin Richmond, CEO said:

“At Sussex Community Foundation, we’re passionate about the place we live and are relentlessly focused on addressing today’s challenges and building for a better tomorrow. Local community organisations play a crucial role in that change. Through partnerships with people and organisations dedicated to supporting local communities, we gave out £3.2million in funding to support Sussex in 2022-23.”

You can find the Philanthropy 2023 report here.

Read more about people our grants have helped.