View Question
Q: Percentage of personal salary to give to charity (UK) ( Answered ,   1 Comment )
 Question
 Subject: Percentage of personal salary to give to charity (UK) Category: Business and Money > Economics Asked by: jamessiddle-ga List Price: \$20.00 Posted: 15 Jan 2006 03:52 PST Expires: 14 Feb 2006 03:52 PST Question ID: 433612
 ```My question has two parts: 1) What is the average percentage of personal salary (or income) given to charity in the UK? 2) What percentage(s) of personal salary is it recommended to give to charity in the UK by the key charitable organisations / bodies? I'm trying to work out how much people give to charity, on average, in the UK, as well as to work out how much it is recommended that you should give to charity. A suitable answer to the second part would be from a group such as the CAF, but government bodies would also be OK.```
 ```Hello James The short answers are: 1) About 0.8% of income. 2) The Chief Executive of the Charities Aid Foundation, the Institute of Philanthropy and The Giving Campaign have suggested giving 1.5% of one's income to charity. You'll see the information I've collected below. When you've had a chance to look through the material, please don't hesitate to ask if anything is unclear. Best wishes - Leli Mean weekly income in the UK in 2003/4 was £408 = £21216 p.a. (Page 11) http://www.dwp.gov.uk/asd/hbai/hbai2004/pdf_files/chapters/chapter_2_hbai05.pdf The CAF (Charities Aid Foundation) says, "The average annual donation per UK adult for 2004/05 was £170.02." This suggests an average donation of about 0.8% of annual income. It isn't ideal using figures from different years, but I don't think the Department of Work and Pensions have published income statistics yet for 2004/5. If the annual increase in income was the same as between 2002/3 and 2003/4 this might change the figure from 0.8% to 0.78%. " . . . amongst households who donate, the poorest fifth, who cannot really afford it, give on average 3% of their household expenditure while the richest 20%, who can afford it, give only 0.7%. (From page 33 of ?A Lot of Give? ? trends in charitable giving for the 21st century?, written by Catherine Walker & Cathy Pharoah, published by Hodder and Stoughton, 2002)" http://www.givingcampaign.org.uk/images/uploaded/blueprint_for_giving.pdf The Institute of Philanthropy uses 0.7% in its "giving calculator". http://www.instituteforphilanthropy.org.uk/home.html For example, it says: "The average person in Britain, on an income of £30,000, donates £210.00 a year (0.7% of their income). If you were to give away 1.5% of your income, as suggested by The Giving Campaign, then you could donate £450.00 each year." This suggested figure of 1.5% of income is sometimes increased for those on £100,000 or more. The Giving Campaign suggests 2% for people at this level, and 3% for people with an annual income of £500,000. "We suggest a benchmark for giving of 1.5% of income on average with the percentage for the better-off going upwards according to their income and wealth and going down for those who cannot afford it." See "A Blueprint for Giving": http://www.givingcampaign.org.uk/images/uploaded/blueprint_for_giving.pdf ("The Giving Campaign (July 2001 - June 2004) was an independent, National campaign supported by the voluntary sector and the Government.") http://www.givingcampaign.org.uk/ "I think it is realistic for us in the UK for donors to aspire to contribute 1.5% of average income to charity." Stephen Ainger, Chief Executive of CAF http://www.cafonline.org/conference/speech03_ainger.cfm "People belonging to faith groups are able to base their giving around a norm well understood in their community. For example, the Church of England recommends that its congregation tithe, giving 5% of their income to the Church and 5% to other good causes. Secular society does not provide a norm and it is clear that many donors wishing to give have no idea of what is a reasonable amount to give. What wealthy people in particular tend to do is to apply absolute amounts when giving, rather than relate their donations to their income and wealth. As a result, they are normally far less generous than poorer people when their giving is expressed as a percentage of their income." http://www.givingcampaign.org.uk/images/uploaded/blueprint_for_giving.pdf The CAF say individual donations to charity represent 0.9% of GDP. (Page 2) http://www.cafonline.org/downloads/UKGiving2004-05.pdf "The percentage of individual giving to GDP is more than double in the US compared to the UK ? in the US, \$183.7bn (£104.6bn) was donated in 2002, 1.75% of GDP compared to £7.3bn, or 0.76% of GDP in the UK." http://www.financialdirector.co.uk/accountancyage/features/2144706/cause "The average American gives 3.2 per cent of his or her income to charity ? here, the average is 0.7 per cent." http://www.thetablet.co.uk/cgi-bin/archive_db.cgi/tablet-01060 Survey of charitable giving 2004/5: . . . around three-fifths of the population [give] to charity per month, and the value of donations [is] 0.9% of GDP . . . ? The average annual donation per UK adult for 2004/05 was £170.02. ? But not everyone gives to charity: the average amount donated by each person who actually gave was £297.10. ? In 2004/05 57.2% of UK adults gave to charity in an average month. ? The average monthly amount given per person was £14.17. This equates to £24.97 per donor. http://www.cafonline.org/downloads/UKGiving2004-05.pdf The average monthly donation in 2003 was £12.32. http://www.cafonline.org/downloads/inside2004.pdf Who are the Givers? The BSA [British Social Attitudes Survey] data found that nearly a third of the population (30%) are essentially non-givers; these are people who report giving less than £5 to charity per year, most of whom give nothing.We term these people bystanders as they are often aware of need but make no contribution to meeting it. The majority of respondents (58%) are casual givers who we term contributors.These are people who give between £5 and £120 to charity per year.They are likely to give infrequently; nearly two-thirds give less often than once a month.They are also far more likely to give donations when asked than to give by direct debit; only a quarter of them give to charity by this regular and usually tax-efficient method. The last group of givers are committed givers who give £120 or more to charity per year and who we term investors.Almost one in eight of the population is in this category, and nearly a quarter of them give over £500 to charity per year. In contrast to the casual givers, they give frequently with over three-quarters giving at least once a month, and over a quarter giving once a week or more. http://www.instituteforphilanthropy.org.uk/IFPgivers1.pdf MORE POOR PEOPLE THAN RICH GIVE TO CHARITY http://www.givingcampaign.org.uk/images/uploaded/who_gives.pdf * £7.1 billion was given to charity during 2003 by individuals. * 70 per cent of the UK population donates to charities, but fewer than one in five people leave a legacy. * 70.7 per cent of women donated to charity in 2003, compared to 60.1 per cent of men. They also tended to make larger donations. * Less than one in twenty people give more than £50 to charity each month, but these donations account for over half of the money donated. http://www.guidestar.org.uk/gs_giving.aspx The charitable giving of UK households has been changing considerably over the past 20 years. http://www.ifs.org.uk/fs/articles/fspharta.pdf Search strategy: Exploring the CAF website Following links from the Institute of Philanthropy website Searching the DWP site for income statistics```
 jamessiddle-ga rated this answer: `Thanks - sorry for the delay in giving a rating, I just arrived back from holiday.`
 ```The old testament encourages people to give 10% of the income to Tzedakah or Charity. I doubt many followers of the old testament do (whether Jewish or Christian). Perhaps we could aim for 10% of our gross salaries.```