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Voluntary income trends
Cathy Pharoah
Director of Research
Estimated growth in individual giving and
tax-efficient giving
(adjusted for inflation at 2002 prices)
£ bn
7.5
7.3
7.3
Total individual giving
5
2.5
2
2.4
1.13
Tax-efficient giving
0
year
Source:
1992
1994
1996
1998
2000
2002
2003
Individual giving as % of GDP 1972 - 2002
%GDP
2.5
1.9%
1.8%
1.5%
US
1.5
0.9%
UK
1.2%
0.5
yr
72 - 91
92
94
Sources: Giving USA (1995-2003; CAF's Individual Giving Surveys (1992-93);
NCVO NOP Individual Giving Surveys (1995-2002). US GDP figures provided by
US Department of Commerce Bureau of Economic Analysis – National Income and
Product Accounts (adjusted for inflation). UK GDP figures provided by the Office
of National Statistics – National Accounts
96
98
00
02
Market Potential – UK/US comparisons
Donations as % of income
Income
US
UK
$25,000 – 49,999
2.2%
1-2%
$50,000 – 74,999
2.6%
<1%
$75,000 – 99,999
2.8%
<1%
$100,000 – 199,999
3.4%
<1%
$200,000 – 499,999
4.6%
<1%
$500,000 – 999,999
5.6%
<1%
$1,000,000 or more
13.3%
2%
Total charitable gifts ($)
113bn
(21bn given by top income band)
UK/US Comparison of giving as %
2.5
incl giving to
religion
excl giving to
religion
2
1.5
1
0.5
0
% of GDP (US)
Source : Giving USA 2003, CAF/NCVO 2003, ONS 2003
% of GDP (UK)
UK Giving Pyramid 2003
£0.5-0.7bn
£1bn
Very wealthy
Mass affluent
£6.3bn
General public
£1.5bn
Legacies
Individuals, legacies, corporate + private family foundations
% of value of donations given
by household income deciles 2003
Top inc decile
28%
bottom half
31%
5th top
7%
2nd top
13%
4th top
11%
Source : CAF Analysis of EFS Survey Data, ONS, 2003
3rd top
10%
Proportion of households giving to charity
in the last fortnight, by income percentile
50%
40%
30%
20%
10%
percentile
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0%
100.0%
Household income per week
60%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
percentile
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0.0%
100.0%
Amount given to charity as a % of income
Proportion of income given to charity
by giving household, by income percentile
Key statistics on tax-efficient charitable giving
2001-02 - 2002-04
2002
£ million
2003
£ million
1,976
2,273
Tax reclaimed by charities on Gift Aid
435
512
Cost of reliefs to higher rate tax-payers
220
240
0.073*
0.086*
20
25
30
350
400
Total individual giving through Gift Aid
Total individual giving through the
payroll*
Cost of payroll giving tax reliefs
Total share gifts
100
Inheritance tax reliefs
340
2004
£ million
310
Comparative annual % growth in real terms of
different tax-effective giving schemes
(2 year moving average)
Growth in CAF’s Top 500 Grant-making trusts,
1997-2003 £bn
1997
2002-03
Grants
1
2.2
Income
1.5
3.4
Assets
20.1
27
Comparison of real terms change in
Worldwide Community Investment with and without
GlaxoSmithKline contribution, 1998-2003
£m
1000
800
600
Top 500 incl GSK
Top 500 excl GSK
400
200
0
1997-98
1998-99
Source: Charity Trends, CAF, 2004
1999-00
2000-01
2001-02
2002-03
Total voluntary income of
the Top 1000 fundraising charities
1998/99 – 2002/03 (£m)
£m 6,000
5,337
5,000
4,000
4,600
3,421
3,771
4,029
3,000
2,000
1,000
0
1998-99
1999-00
2000-01
2001-02
2002-03
The annual real growth of voluntary income
of the Top 1000 fundraising charities,
1998/99-2002/03
20%
15%
10%
12.3%
12.9%
2001-02
2002-03
9.6%
6.7%
5.1%
5%
0%
1998-99
1999-00
2000-01
Components of total income
to the CAF top 500 charities 2002-03
Trading fees
and contracts
21%
Grants from
affiliates and
subsidiaries
2%
Public and
other bodies
grants
20%
Rent &
Investments
4%
Donations,
grants and
fundraising
events
34%
Legacies
13%
National
Lottery and
charity shop
donated
goods
6%
Total income of top 500
by area of welfare
Education
3%
Environment
10%
Other
3%
Social Services
27%
Faith-based
Activities
8%
Arts/culture
13%
Health
20%
International
16%
Income composition of the major
charity sub-sectors 2002-03
Legacies
Donations
Public
grants
Trading/oth
Rent/Invest
Fees/
contracts
Faith-based
5%
62%
2%
5%
7%
20%
Arts/culture
1%
33%
38%
4%
2%
23%
Education
1%
42%
27%
4%
1%
26%
Environment
27%
42%
10%
4%
4%
12%
Health
20%
40%
13%
7%
5%
15%
International
7%
56%
29%
3%
1%
4%
Soc services
12%
34%
16%
4%
3%
30%
Distribution of legacies in top 500
by area of welfare
Faith-based
Arts/culture
3%
1%
Other
6%
Education
1%
Environment
21%
Soc services
27%
International
9%
Health
32%
Distribution of donations in top 500
by area of welfare
Other
3%
Faith-based
12%
Soc services
22%
Arts/culture
10%
Education
3%
Environment
10%
International
21%
Health
19%
Voluntary sector and government department
spending priorities 2002-03
Government
Sector
Total
Voluntary
Health
(excl. social
protection**)
54,100
Health
1,689
1,017
Social
protection
12,600
Social Care
2,314
1,086
DifD
3,500
International
1,394
875
DCMS
5,100
Arts/culture
1,107
370
DEFRA
8,300
Environment
825
570
47,200
Education
278
117
7,607
4,035
DES
TOTAL £m
130,800
* Source: Public Expenditure Statistical Analyses 2004
** Source: Department of Health (DoH) Bulletin 2004/02: Personal Social Services
Expenditure and Unit Costs: England: 2002-03. Social protection is part of the DoH.
Value of donations in relation
to public welfare expenditure
Total voluntary income within major service area is equal to:

2% of government expenditure on health;

8.6% of government expenditure on personal social services;

25% of government expenditure on international;

7.2% of government expenditure on arts and culture;

6.9% of government expenditure on environment;

0.3% of government expenditure on education.