Charitable giving in the UK is a large (and until recently, thriving) business. There are approximately 170,000 registered charities in the UK, with a combined annual income of £46 billion from all sources. The charitable causes are many, and the ways of giving are extremely varied; through trusts and foundations, social/private partnerships, ventures and social investments. Philanthropy has come of age, and without the stigma of condescension that it may have had in previous times. Major donors are often entrepreneurs and innovators who have gained their wealth through their own efforts and initiative, rather than simply inheriting the role of benefactor in a socially divided society.
Professor Cathy Pharoah, co-director of the Centre for Charitable Giving and Philanthropy (CGAP), calls the modern interest in philanthropy an 'ideological shift'. "There has been a growing awareness of the role of private philanthropy in society. The growth of private wealth over the last few decades has opened up a new era in private giving," she says.
CGAP, co-funded by the ESRC with the Office of the Third Sector, the Scottish government and Carnegie UK, aims to study trends, motivations, and effectiveness in the expanding field of giving and philanthropy. As part of the 'third sector' alongside the public and business sectors, charity and philanthropy has become an accepted part of UK society.
This has not always been the case. After a previous 'golden age' of philanthropy in the late 19th and early 20th century, with benefactors supporting major public welfare programmes in social care, education and the abolition of slavery, philanthropy fell out of fashion in the UK. In a 1948 poll more than 90 per cent of people felt that there was no longer a role for charity. Instead, the general opinion was that the state should take over all welfare responsibilities.
Throughout the following decades it has become increasingly clear that the welfare state, despite its good efforts, is not able to meet all welfare needs. As governments began to roll back the boundaries of the state and to contract out the provision of welfare, the role of charities assumed a new importance once again. "There is a growing recognition that there are limits to what the state can provide. There are certain jobs that charities and the third sector can do better than the government," Professor Pharoah points out. "Charities can fill gaps when it comes to socially excluded groups, disabilities and special needs - for instance forming user groups for diseases that are less prevalent. Charities allow for more user representation, engagement and involvement."
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