The UK faces pressing challenges, from rising homelessness and health issues to environmental crises. As the government tackles these issues, it should work with charities, community groups, and social enterprises that have long been involved in addressing these very areas. However, charities face barriers, particularly limited finances, which hinder their ability to contribute fully.

With the wealthiest in the UK expressing a willingness to contribute more, the government has an opportunity to encourage an estimated £2.8 billion in additional charitable giving each year. These funds could substantially support government goals, such as placing mental health counselors in schools and creating community hubs for young people. Encouraging philanthropy among the wealthy could make a significant impact, as most affluent individuals are already inclined to donate to causes like medical research.

A proven method to boost charitable giving is by engaging financial advisors, who manage assets for many wealthy individuals. Currently, only 8% of affluent clients receive advice on philanthropy from their advisors, despite evidence that financial guidance can significantly increase charitable donations. Studies show that when financial advisors discuss philanthropy, clients are more likely to give and may even increase donations by 40%. Expanding philanthropic advice could unlock an estimated £1.1 billion annually for charities.

The government should work with the Financial Conduct Authority (FCA) to integrate philanthropy training into the continuing professional development (CPD) of financial advisors, ensuring that all advisors are equipped to guide clients on charitable giving. Advisors should be trained on a range of philanthropic options to help clients make informed decisions. The new government should prioritize this as a key early action, demonstrating its commitment to societal progress.

A broader National Philanthropy Strategy would further support charitable giving, addressing the gap between the UK’s philanthropic contributions and those of countries like Canada and New Zealand. Empowering advisors to promote philanthropy aligns with the government’s objectives, allowing it to make substantial headway in tackling its mission-driven goals while enabling high-impact, sustainable social change.

Read the full article by Pro Bono Economic.