The charitable giving of UK households has changed considerably over the past 20 years. In particular, the proportion of households giving to charity fell by 5 percentage points between 1974 and 1993-94. An increase in the average size of donations meant that total voluntary income increased in real terms over the period, but, since 1988, voluntary income has stagnated. The greatest falls in the number of givers are among households in their twenties and thirties. There are clear trends in giving across households by age and income, with younger and poorer households tending to give less. But not only are today's younger households less likely to give than today's middle-aged households; they are also less likely to give than today's middle-aged households did when they were young. These generational trends in giving do not bode well for levels of voluntary income in the future.JEL classification: D12, D6.

Charitable giving is an important source of funding for overseas development and emergency relief. Donations in the UK are about a quarter of the size of government development aid. There has been strong growth over time, reflecting the activities of development charities and the public response to humanitarian emergencies. The paper examines how this charitable giving has changed since 1978, using a newly constructed panel data set on donations to individual UK charities. When did the increase take place? Did the public respond to events such as Live Aid or has there been a steady upward trend? What has been the relationship with changes in household income? Which charities have grown fastest? Have new charities displaced old? How do changes in giving for overseas compare with changes in giving for other causes?

Summary Summary Summary SummaryWhile government has clearly signalled the importance it attaches to the growth of charitable giving and philanthropy in building the Big Society, there has been little appraisal of what needs to be achieved through this approach, and how far growth is feasible. This paper identifies current thinking and policy expectations of giving and philanthropy, and the messages which emerge from a review of evidence on current distribution, the donors, donations and emerging demand. It looks at how far philanthropy is likely to take the place of statutory support, and meet new needs. It is concluded that charitable giving is far more driven by donor preference and less socially instrumental than many acknowledge. An increase in the scale of charitable giving and philanthropy may only lead to an expansion in its role if it is accompanied by a new awareness of public need.

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