UK charitable giving fell 10% in 2025 to £14 billion, while charities report record demand (Civil Society on CAF's UK Giving Report 2026). That leaves a growing gap that businesses, large and small, are well placed to help close. This article explains the pressure charities are under, what local companies in the South West can do, and how to build partnerships that last beyond one cheque.
Why charities need business partners now
Fewer people are giving, and those who do are giving less. The Charities Aid Foundation's UK Giving Report 2026 found 55% of adults donated in 2025, down from 69% in 2016, with average gifts falling from £72 to £65 and 2.8 million people cancelling regular donations, mostly over affordability (Civil Society).
Demand is moving the other way. Charity Commission research published in July 2025 found 9% of people had received food, medical or financial support from a charity in the past year, up from 3% five years earlier, while the share donating fell from 62% to 48% (GOV.UK). An earlier CAF survey of 784 charity leaders found 86% reporting higher demand and half citing tougher competition for funding (Civil Society).
Trust is still there: 60% of people report high trust in charities. For businesses, that makes partnership a credible way to show community commitment, if it is done well.
Five ways businesses can partner with charities beyond a one-off donation
Corporate giving is shifting from ad hoc donations towards multi-year partnerships with clear outcomes and employee involvement, according to Plinth's guide to the future of corporate giving. Plinth, a grant-management software provider, also estimates that 75% of British businesses did nothing to support charities in the previous year, so there is room for new entrants.
- Give regularly, locally. A small monthly gift or a business fund through your community foundation gives charities predictable income, which is worth more than a one-off cheque.
- Volunteer your people and skills. Skills-based volunteering is the fastest-growing form of corporate involvement; Plinth reports Reach Volunteering placed a record 5,452 skilled volunteers and trustees in 2024. A marketing, finance or legal professional can be worth more to a small charity than cash.
- Offer pro bono and in-kind support. Free meeting space, printing, discounted services or surplus stock cost you little and save charities real money.
- Make social value part of how you win work. The Procurement Act 2023 took effect on 24 February 2025, and the National Procurement Policy Statement asks public bodies to give social value at least a 10% weighting and to maximise spend with SMEs and VCSEs (Bates Wells). Firms bidding for council or NHS contracts can partner with local charities to deliver that value.
- Measure and share results. Plinth reports 59% of UK companies plan to increase investment in impact reporting. Agree outcomes with your charity partner at the start and report them honestly to staff and customers.
A timely hook: Giving Tuesday falls on 1 December 2026. It is a good moment to launch a staff giving scheme, match employee donations or announce a charity partner for 2027.
Frequently asked questions
How much should a small business give to charity? There is no fixed amount. A common benchmark is 1% of pre-tax profit, and regular small gifts, volunteer days or in-kind help all count. Start with what you can sustain for a year.
How do I choose a charity partner? Look for a cause your staff and customers care about, a local charity with clear outcomes, and one willing to agree shared goals. A community foundation can recommend grassroots groups.
Is it better to give cash or volunteer? Both help. Unrestricted cash gives charities flexibility, while skills-based volunteering adds expertise they could not afford. Many partnerships combine the two.
What is social value in procurement? It is the wider economic, social and environmental benefit a contract delivers beyond price, such as local jobs, training or community support. Public bodies now score it as part of tenders.
Start a partnership with CommonGood
Business and charity partnerships work best when both sides know what the other needs. Share this article with your leadership team, pick one action from the list above, and sign up to CommonGood to find a South West charity partner for your business.
