Voluntary income trends

Voluntary income trends

Cathy Pharoah

Director of Research

7.3 7.3

2

1.13

2.4

0

2.5

5

7.5

1992 1994 1996 1998 2000 2002

year

£ bn

2003

Total individual giving

Tax-efficient giving

Source:

Estimated growth in individual giving and tax-efficient giving

(adjusted for inflation at 2002 prices)

Individual giving as % of GDP 1972 - 2002

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

0.5

1.5

2.5

72 - 91 92 94 96 98 00 02 yr

%GDP

1.5%1.8%

1.9%

US

1.2%0.9%

UK

Market Potential – UK/US comparisons

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

Donations as % of income

(21bn given by top income band)

UK/US Comparison of giving as %

0

0.5

1

1.5

2

2.5

% of GDP (US) % of GDP (UK)

incl giving toreligionexcl giving toreligion

Source : Giving USA 2003, CAF/NCVO 2003, ONS 2003

UK Giving Pyramid 2003

£0.5-0.7bn

£1bn

£6.3bn

£1.5bn

Very wealthy

Mass affluent

General public

Legacies

Individuals, legacies, corporate + private family foundations

% of value of donations given by household income deciles 2003

2nd top13%

Top inc decile28%bottom half

31%

5th top7%

3rd top10%

4th top11%

Source : CAF Analysis of EFS Survey Data, ONS, 2003

Proportion of households giving to charity in the last fortnight, by income percentile

0%

10%

20%

30%

40%

50%

60%

100.0

%

90.0

%

80.0

%

70.0

%

60.0

%

50.0

%

40.0

%

30.0

%

20.0

%

10.0

%

percentile

Ho

useh

old

in

co

me p

er

week

Proportion of income given to charity by giving household, by income percentile

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

100.0

%

90.0

%

80.0

%

70.0

%

60.0

%

50.0

%

40.0

%

30.0

%

20.0

%

10.0

%

percentile

Am

ou

nt

giv

en

to

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% o

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Key statistics on tax-efficient charitable giving 2001-02 - 2002-04

2002

£ million

2003

£ million

2004

£ million

Total individual giving through Gift Aid 1,976 2,273

Tax reclaimed by charities on Gift Aid 435 512

Cost of reliefs to higher rate tax-payers 220 240 310

Total individual giving through the payroll*

0.073* 0.086*

Cost of payroll giving tax reliefs 20 25 30

Total share gifts 100

Inheritance tax reliefs 340 350 400

-20

0

20

40

60

80

100

91 92 93 94 95 96 97 98 99 00 01 02 03

year

Gift Aid

Payroll giving

Tax Changes

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

0

200

400

600

800

1000

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

Top 500 incl GSK

Top 500 excl GSK

£m

Source: Charity Trends, CAF, 2004

Comparison of real terms change in Worldwide Community Investment with and without

GlaxoSmithKline contribution, 1998-2003

Total voluntary income of the Top 1000 fundraising charities

1998/99 – 2002/03 (£m)

3,4213,771

4,029

4,600

5,337

0

1,000

2,000

3,000

4,000

5,000

6,000

1998-99 1999-00 2000-01 2001-02 2002-03

£m

The annual real growth of voluntary income of the Top 1000 fundraising charities,

1998/99-2002/03

9.6%

6.7%5.1%

12.3% 12.9%

0%

5%

10%

15%

20%

1998-99 1999-00 2000-01 2001-02 2002-03

Components of total income to the CAF top 500 charities 2002-03

Trading fees and contracts

21%

Rent & Investments

4%Donations, grants and fundraising

events34%

Legacies13%

National Lottery and charity shop

donated goods

6%

Public and other bodies

grants20%

Grants from affiliates and subsidiaries

2%

Total income of top 500 by area of welfare

Social Services27%

Health20%

International16%

Arts/culture13%

Faith-based Activities

8%

Environment10%

Other3%

Education3%

Legacies DonationsPublic 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%

Income composition of the major charity sub-sectors 2002-03

Distribution of legacies in top 500 by area of welfare

Health32%

International9%

Soc services27%

Environment21%

Other6%

Faith-based3%

Arts/culture1%

Education1%

Distribution of donations in top 500 by area of welfare

Faith-based12%

Arts/culture10%

Education3%

Environment10%

Health19%

International21%

Soc services22%

Other3%

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

DES 47,200 Education 278 117

TOTAL £m 130,800 7,607 4,035

* 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.

Voluntary sector and government department spending priorities 2002-03

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.