A Call to Supercharge Philanthropy in Scotland

Philanthropy has always been part of Scotland’s social fabric – from the great benefactors of the past to the foundations, businesses and communities driving change today. At times of crisis philanthropy has provided the spark for innovation and resilience.

Yet as Scotland faces rising social need alongside tightening public budgets, the question is unavoidable: are we doing enough to unlock the full potential of philanthropy?

The honest answer is no. A step change is required in how philanthropy is understood, encouraged and integrated into national life.

Why Philanthropy Matters Now
Scotland’s charities and community organisations are under growing pressure. Demand for their services is increasing while public funding is stretched. Philanthropy can help in two vital ways:

  • Supplementing public funding to accelerate national missions such as tackling poverty or driving sustainability.
  • Supporting small and medium-sized charities with the stability to innovate and sustain their work.

Unlike government budgets, philanthropic capital can move quickly, take risks and back pioneering projects. Yet too often this potential is under-realised.

The Warning Signs
Recent UK wide trends highlight a concerning picture:

  • The number of UK non-governmental grants fell from nearly 100,000 in 2023 to just 31,000 last year.
  • Corporate giving is down with £164 million in lost contributions.
  • High Net Worth Individuals are donating less, with the UK’s wealthiest reducing their contributions by £200 million in one year.
  • The UK is experiencing an exodus of millionaires, many citing more favourable economic and philanthropic environments elsewhere.

If unchecked, this decline will weaken civil society’s ability to respond to need precisely when it is most required.

What Needs to Change
Scotland requires a bold and coherent National Philanthropy Strategy led by the Scottish Government to give clarity and confidence to both givers and charities. This strategy should:

  • Set an ambitious national target for charitable giving over the next five years.
  • Establish a £100 million match fund from dormant assets to attract co-investment – a model proven to multiply contributions.
  • Appoint a National Philanthropy Champion supported by regional champions to galvanise action across the country.
  • Embed philanthropy into Local Authority planning and national policy frameworks.

OSCR, the charity regulator, should also play a stronger role. Beyond its regulatory function it can act as a facilitator, raising awareness of Gift Aid and Payroll Giving, improving data on giving and encouraging collaboration between charities.

Philanthropists themselves must adapt too. Greater transparency, more multi-year unrestricted funding and simpler application processes will make resources more accessible, particularly for smaller organisations.

A Moment of Opportunity
Scotland has historically shown what is possible. Public–private partnerships have delivered regeneration projects, employment programmes and education initiatives. The next wave of philanthropy can help us confront inequality, climate change and the need for sustainable communities.

For this to happen leadership is essential. The Scottish Government can set the direction. Philanthropists are ready to respond. At recent Centre for Social Justice Big Listen events donors made clear they want to give more but need assurance that their efforts will align with a clear national roadmap.

Building a Nation of Generosity
Philanthropy is not a substitute for the state. It is a multiplier – a force that unlocks innovation, strengthens communities and amplifies Scotland’s reputation as a nation of fairness and solidarity.

The forthcoming 2026 Holyrood election provides a natural moment to embed this vision. By committing to a National Philanthropy Strategy, political parties can signal that generosity is not only part of Scotland’s past but central to its future.

Now is the time to act. With the right framework Scotland can become not just a nation of resilience but a nation of generosity.

Kenneth Ferguson is Head of Scotland at the Centre for Social Justice Foundation