Could match funding launch a giving boom?

Amid times of economic uncertainty many charities see their donations dwindle with supporters unable to give as much as they would like. Some are taking a break from giving altogether.

 

Match funding, where supporters’ donations are matched – often by philanthropists, government investment, and foundations – is increasingly being seen as a way to boost giving.

 

This gives donors peace of mind that their donations, no matter how small, are being boosted by others with deeper pockets. It also offers philanthropists and politicians a chance to maximise the value of their giving, by using their funds to encourage others to donate.

 

Here we look at the increasing calls to use match funding to launch a giving boom. We also showcase successful match funding schemes.

 

 

Political support for match funding

 

MPs are calling on government departments to create match fund schemes for charities, which are in line with their policy objectives, such as tackling climate change and supporting marginalised communities.

 

A 2022 report from MPs sitting on the All-Party Parliamentary Group (APPG) for Philanthropy and Social Investment says the move would also boost giving, particularly among wealthy donors and foundations.

“Match funding offers a powerful incentive to engage new donors to give by offering the opportunity to double, or even triple, their contribution,” states the APPG’s report ‘Unleashing the Potential of Philanthropy and Social Investment’.

“Match funding schemes can be developed in line with policy objectives, thus providing democratic accountability to philanthropic activity, and offering the basis for effective partnerships between communities, government, and donors on shared concerns.”

 

The report also details how a match funding commitment from government can also incorporate blended social investment options, offering loans as well as grants.

 

The APPG’s co-chair Rushanara Ali, Labour MP for Bethnal Green and Bow, said that “targeted policy changes” including match funding around philanthropy “could unlock £11.4bn in giving and social investment.

Danny Kruger, Conservative MP for Devizes, who also Co-Chairs the APPG, added that the report’s recommendations offer a “great opportunity” to “maximise the huge potential of private wealth for public good”.

 

Match funding in action

 

 

Big Give

 

One of the most high-profile and successful match funding campaigns in the UK in recent years has been the annual Big Give Christmas Challenge.

 

This sees a group of foundations and philanthropists pledge to match fund donations for more than 1,000 charities taking part in a week of campaigning that starts on the annual Giving Tuesday event at the end of November.

 

Funders involved include The Childhood Trust, Julia & Hans Rausing Trust, and The Reed Foundation.

 

Despite the cost-of-living crisis hitting donors’ spending power, 2022 saw the campaign raise a record £28.6m for charities. This is up £4.5m on the previous year’s tally of £24.1m.

 

“Our mission is simple, to multiply the impact of generous giving,” says Big Give Managing Director Alex Day.

 

“To be able to support over 1,000 charities taking part in the Christmas Challenge campaign at a time when their work is never more needed is a huge privilege.

“We know that match funding resonates with the public, who have responded to the idea of doubling their donations at a time when everyone is feeling the squeeze. It once again reiterates the generosity of the British public.”

Charities to benefit include the Vision Foundation, which raised more than £50,000 during the campaign to support blind and partially sighted people impacted by domestic abuse.

 

 

Social investment match funding

 

Among match funding initiatives praised by the All-Party Parliamentary Group (APPG) for Philanthropy and Social Investment is a £2.5m grants and support funding scheme to support Black and Minoritised Ethnicity-led charities and social enterprises.

 

Funders involved include the Foundation for Social Investment, The Ubele Initative, and Create Equity.

 

This has been boosted through £2m of match funding made available through loans from the government’s Recovery Loan Fund. 

“The grants and support were used to widen accessibility of the fund to groups that have traditionally found it more difficult to secure investment,” states the APPG.

 

It adds: “If grants are offered on the condition that they are matched or blended with investment” then civil society organisations “can increase the level of return they offer to these investors”