UK philanthropic foundations are being subjected to greater scrutiny in how they address racial inequality with their funding distribution, yet the deeper critical question of whether these foundations perpetuate racial inequality in their very ethos, practices and existence remains unanswered. These foundations provide over £6.5billion of grants annually to the charitable sector, hold substantial power and influence over social movements and justify their charitable status by stating that they are addressing issues such as poverty and inequality. Yet many private foundations were built on a Victorian paternalistic model of gracious benefactor and grateful beneficiary and against the historical context of empire‐building, slavery and colonialism which embedded ideas about ‘race’ within philanthropy. Furthermore, delineation between the deserving and undeserving poor connected with these formulations of race, to position subjects of colonies inequitably within this charitable paradigm and reinforce stereotypes. At the time, this formed the justification for the expansion of missionary or colonial philanthropy overseas which was the biggest philanthropic cause of the pre first world war era and which can be traced back as the basis for the ‘white saviour complex’ exhibited today within UK foundations, as they continue to operate a colonial social architecture. This inherent and unchallenged colonial social architecture used for grantmaking and funding distribution imbues processes and practices with the same ethos and principles exhibited by colonialism, resulting in a ‘neo‐colonial philanthropy’, the tenets of which are identified and explored. In addition, as racial inequality remains one of the most critical issues of our time, it is asserted that foundations will need to understand the historical context of the UK’s colonialist history in order to recognise the link with racial disparities exhibited in communities today. This direct connection together with their own inbuilt colonial architecture necessitates an urgent conversation for Foundations about whether reparative or restorative justice is a more effective operational paradigm and the long term solution needed to address neo‐colonial philanthropy or the ‘Empires new clothes’.