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Why stronger relationships between businesses and charities matter more than ever

With charities under increasing pressure and businesses placing greater value on social impact, stronger partnerships between the two sectors are becoming more important than ever. This article explores why meaningful collaboration can benefit both charities and businesses alike.

Why stronger relationships between businesses and charities matter more than ever

With charities under increasing pressure and businesses placing greater value on social impact, stronger partnerships between the two sectors are becoming more important than ever. This article explores why meaningful collaboration can benefit both charities and businesses alike.

Corporate giving is falling. Community need is rising.

That gap matters - and it is one we believe businesses and charities can work together to close.

Across the UK, charities are facing rising demand, increasing costs and greater competition for funding. At the same time, many businesses are reassessing what social impact, community contribution and purpose really mean in practice.

Recent analysis from CAF’s Corporate Giving Report highlighted an estimated £185 million reduction in charitable contributions since 2022 when adjusted for inflation. The same report also showed that most UK businesses still do not actively support charities through partnerships, fundraising, volunteering or governance.

This decline comes at a time when charities are being asked to do more, with less.

But there are reasons for optimism.

  • Employee participation in volunteering and charitable activity continues to grow, reflecting a wider shift in what people want from the organisations they work for.
  • Purpose, community and social impact are becoming increasingly important to employees, customers and stakeholders alike.

For charities, corporate relationships can provide far more than financial support. For businesses, they can create stronger employee engagement, meaningful leadership development opportunities and a clearer connection to the communities they serve.

We spoke with Chris Kirkwood, Chief Executive of YMCA Lincolnshire, who believes the opportunity lies in more meaningful alignment between the two sectors:

“The ability for charities to further diversify funding is paramount and as part of that mix, finding and articulating genuinely meaningful alignment of purpose and values with the business sector is key. This includes going beyond pure financial transaction, but where time, services, equipment and other types of support may benefit the resilience of a collaboration.”

One area where this mutual benefit is particularly clear is charity trusteeship.

Many business leaders underestimate the value they can bring to charities through governance roles. Experience in finance, legal matters, operations, strategy, people management, marketing or technology can provide vital expertise that helps charities grow, adapt and navigate increasingly complex environments.

But trusteeship is not simply about giving back. As Chris explains:

“The best trustees in the best charities aren’t simply giving their time, they are mutually helping each other to grow personally and professionally.”

Over the coming weeks, we will be speaking with charities across our region and nationally to explore what meaningful business support really looks like.

Our aim is simple: to help bridge the gap between the corporate and charity sectors.

We want to highlight the challenges charities are facing, showcase the value businesses can bring, and encourage more leaders to consider how their skills, people and organisations could make a lasting difference.

Because in the current climate, stronger relationships between businesses and charities are not just welcome, they are needed.