Transatlantic Reflections on Philanthropy: Major Themes from the UK Beacon Collaborative Forum

On Wednesday, February 12, 2025, PFC’s Lead Researcher, Michele Fugiel Gartner, attended the Beacon Collaborative Forum in London, a gathering of 250 philanthropists, impact investors, philanthropy sector leaders, sustainable finance professionals, charity leaders, policymakers, academics, think tanks, regulators, and media.

As a close partner of the UK, Canada has much to gain from looking beyond the U.S. for philanthropic insights. While American philanthropy often dominates discussions, the UK offers distinct approaches that can inform Canadian practice, particularly in areas of policy innovation, impact investing, and cross-sector collaboration.

Below are five major themes that emerged:

1. Place-Based Philanthropy Strategy

The UK government, through the Department for Culture, Media & Sport (DCMS), is advancing a place-based philanthropy strategy as part of broader Labour goals around philanthropy, which are to connect stakeholders, unlock capital, and celebrate stories of UK philanthropy as evidenced by the forthcoming Civil Society Covenant.

Announced in December 2024, a key feature of the place-based philanthropy strategy is facilitating stronger relationships between wealth holders, corporations, local authorities, and communities (Civil Society, 2024). While people may have moved away from their hometowns, they may still feel a connection to give back to their communities. The place-based strategy asks UK donors to consider how their gifts can support economic and social development. Examples like Made in Stoke, a community of 10,000 people who contribute to the regeneration of Stoke-on-Trent, exemplify how individuals, corporations, local authorities, and philanthropy can come together for transformation.

While North America has a longer-standing community foundation tradition, UK community foundations are crucial stakeholders in a place-based strategy and are poised for growth. A sole counterargument raised was whether an emphasis on local giving could inadvertently disadvantage international philanthropy, particularly important following the removal of USAID funding. An emerging theme is ensuring that place-based philanthropy does not come at the expense of global giving.

Minister Peacock, Minister for Civil Society and Youth, shared remarks at the Forum, which you can read here: https://www.gov.uk/government/speeches/minister-peacock-speech-at-the-beacon-philanthropy-and-impact-forum

2. Unlocking Wealth through Tax, Wealth Creation, and Philanthropy

Advancing the interest to unlock capital was addressed in a roundtable discussing the intersection of tax policy, wealth creation, and philanthropy. The overarching theme was simplicity—how to make giving easier for wealth holders by streamlining philanthropic tools such as Gift Aid, payroll giving, and “share aid.”

The next generation and wealth transfer also emerged as a central issue. While much has been written about an impending major transfer of wealth, there was a consensus that a more nuanced segmentation of “next-gen” and a more realistic timeline for wealth transfer is needed. Understanding these generational shifts in wealth and attitudes toward philanthropy will be essential to ensuring sustained giving in the UK, which may be supported by greater primary and secondary education on the value of taxation and its intersection with giving.

3. Raising the Standard of Corporate and Workplace Giving

Discussions at the Forum highlighted the need to elevate corporate and workplace giving to ensure a more strategic and sustainable impact. While payroll giving and corporate volunteering programs exist, they were noted as underutilized and fragmented. Participants emphasized the role of leadership in embedding philanthropy into corporate values, moving beyond transactional donations to long-term partnerships with charities. There was also discussion around aligning corporate philanthropic efforts with community needs to enhance long-term impact.

Corporate volunteering was another key topic, with concerns about the burden on charities to manage short-term or high-turnover volunteer programs. Some participants suggested that developing sustained partnerships between businesses and nonprofits could help address this issue by fostering mutual understanding and more effective engagement. Overall, there was recognition that workplace giving plays a role in corporate responsibility, but further efforts may be needed to enhance its effectiveness and sustainability.

4. The UK as a Philanthropic Hub and place to leave a legacy

Promoting philanthropy as a key part of the UK’s government priority—both in terms of domestic giving and as a place to establish philanthropic legacies—was another central theme. The infrastructure for major giving is already in place, from the Charities Commission and government interest to philanthropic advisory services and tax incentives.

One significant point of debate was whether the UK should introduce a minimum payout requirement for philanthropic foundations akin to the 5% mandate in Canada and the US. While some advocated for this to encourage under-spending foundations to act, others pointed to research showing that most UK foundations already voluntarily meet a 5% spending threshold. A further argument of not sacrificing today for tomorrow was made. Instead of blanket legislation, more tailored interventions – such as Charity Commission research and data on foundations who are underspending – or alternative mechanisms, such as a total return approach – taking a foundation’s social investment and grantmaking percentages together may reflect a modern approach (reflecting the total return to investment changes for Trustees) and prevent a blanket, legislated policy.

5. The Absence of US Politics from the Main Stage

Although US policy discussions were present in small groups and informal conversations, they were notably absent from the main stage. This may have been a deliberate choice to focus on the UK’s distinct approach to philanthropy, offering a reprieve from the often-dominant US-centric perspectives on giving.

However, the reality remained that global philanthropic markets are deeply interconnected. Uncertainty and complexity persist, even as UK philanthropy advances themes of stakeholder connection, unlocking wealth, and celebrating philanthropic impact. There was recognition that ongoing dialogue between regions is essential—not only to share best practices but also to engage in collective sensemaking about philanthropy’s evolving role in addressing global challenges.

The Beacon Collaborative Forum brought together diverse stakeholders, each playing a role in philanthropy, highlighting the need to break through industry silos and engage in broader discussions on philanthropy’s role in an emerging global reality. From a UK perspective, work still exists to incentivize high-net-worth individuals, companies, and workplaces to give more. Place-based strategies and community foundations offer critical pathways to engage donors in personally meaningful and transformative ways for communities. There are different levers to pull, shaped by contemporary contexts and cultural differences. Understanding how other countries approach philanthropy provides valuable insights that can help reflect on and refine the Canadian philanthropic landscape.