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The Power of 1%: Why Smart Charities Are Targeting the New Wave of Corporate Philanthropy

Light Reading

18 Aug

Written By Tim Barnes

Blog Post: The Power of 1%

Title: The Power of 1%: Why Smart Charities Are Targeting the New Wave of Corporate Philanthropy

Hook: While you're chasing the same tired CSR budgets, a £230 million movement is quietly revolutionising UK corporate giving—and most fundraisers are missing it.

The 1% pledge movement transforming corporate philanthropy globally
How UK businesses are structuring systematic giving programmes
Why this creates unprecedented opportunities for charity partnerships
Building propositions that appeal to 1% pledgers
Positioning your charity as the partner of choice for committed corporates

Sir Chris Hohn doesn't do tokenism. The hedge fund manager, topping the Sunday Times Giving List 2024 with £600.9 million donated last year, has a blunt message for his wealthy peers: "Even for those who are into philanthropy, they're only giving away a half percent of their wealth. They're not really doing more than tokenism."

His prescription? A minimum of 1% of wealth committed to good causes. And here's why charity fundraisers should be paying attention: this isn't just one billionaire's opinion—it's becoming a movement that's reshaping corporate philanthropy.

The 1% Revolution Takes Root

Forget traditional CSR budgets squeezed between marketing and PR. The 1% movement represents something fundamentally different: structural, sustained giving built into business DNA.

The numbers tell the story. Pledge 1%, launched by Salesforce, Atlassian, and Rally, has mobilised over 18,000 companies across 100 countries, channelling half a billion dollars into philanthropy. Not through one-off campaigns or crisis appeals, but through systematic commitment: 1% of equity, product, profit, or employee time.

Meanwhile, 1% for the Planet, Yvon Chouinard's environmental giving vehicle, has certified over $500 million in donations since its inception. These aren't charitable whims—they're business commitments as fundamental as paying suppliers or staff.

The UK Catches the Wave

Here's what should grab every fundraiser's attention: the Directory of Social Change recently identified 70 UK companies that have pledged or donated at least 1% of pre-tax profits to charity. Total value? £230 million in cash and in-kind contributions.

This isn't dominated by corporate giants. Look closer at who's participating:

Alpkit: This outdoor equipment brand, hardly a household name, has donated over £500,000 to 1,800 grassroots projects since 2015 through its foundation. They give 1% of sales plus at least 10% of annual profits. Their grants range from £50 to £500—perfect for smaller charities often ignored by major corporates.

Nationwide Building Society: Beyond their size, what's interesting is their focus. They've committed 1% of pre-tax profits specifically to housing and financial education causes. In 2021/22 alone, they awarded £4 million to 94 housing projects. This isn't scatter-gun giving—it's strategic philanthropy aligned with business purpose.

Central England Co-operative: Through their Community Dividend Fund, they reinvest 1% of trading profit locally, having donated over £173,000 to community projects. Grants range from £100 to £5,000—accessible amounts for grassroots organisations.

The Opportunity Most Charities Miss

Here's the fundraising gold: companies making 1% pledges need charity partners. But most fundraisers are still pitching tired CSR proposals about "enhancing your brand" and "employee engagement." These companies have already committed to giving—they need partners who understand their philosophy.

What 1% pledgers actually want:

Philosophical Alignment: They've made a values-based commitment. Show how your mission amplifies their values, not how you'll boost their reputation.

Systematic Partnership: These aren't one-off donors. They want sustained relationships with clear frameworks for giving and impact measurement.

Authentic Connection: Companies joining the 1% movement often have founders or leaders personally committed to change. Connect at that human level, not just corporate.

Flexible Engagement: Note Pledge 1%'s framework—equity, product, profit, or time. Smart charities create multiple entry points beyond just cash.

Impact Evidence: These businesses are sophisticated about giving. They want to know their 1% creates genuine change, not just activity.

Building Your 1% Strategy

Stop waiting for companies to find you. Here's how to tap this movement:

Map the Pledgers: Who in your sector or geography has made 1% commitments? The Pledge 1% and 1% for the Planet websites list members. The DSC's research names UK participants. Start there.

Understand Their Focus: Alpkit funds outdoor inclusion. Nationwide tackles housing. Central England supports local communities. Match your programmes to their priorities—don't force fit.

Create Structured Programmes: Design partnership frameworks that work at scale. If a company commits 1% annually, they need efficient ways to deploy it. Think programme funding, not project-by-project pitches.

Leverage the Network: 1% pledgers often influence peers. One successful partnership can open doors to entire business networks. Patagonia influenced Brushfire Records and Klean Kanteen. Who might your corporate partner influence?

Think Beyond Cash: Employee time is part of many 1% pledges. Can you create meaningful skilled volunteering programmes? Product donations? Equity stakes for long-term partnership?

The Deeper Shift

This movement signals something profound: a shift from philanthropic afterthought to integrated giving. When TCI structured 15% of profits to flow automatically to the Children's Investment Fund Foundation, they removed charity from the realm of discretion.

This is the future—giving as business architecture, not business decision.

Debra Allcock Tyler, CEO of DSC, captures the potential: "When we're talking about companies who make huge pre-tax profits each year, 1% can have a large cumulative effect."

But here's what she doesn't say: that cumulative effect only happens if charities position themselves as credible partners for this new wave of structural giving.

The Fundraiser's Imperative

The 1% movement is gathering pace. Globally, momentum is building. In the UK, early adopters are proving the model. The question isn't whether this movement will grow—it's whether your charity will be positioned to benefit.

This requires different fundraising thinking:

From transactional to structural
From convincing to connecting
From corporate need to corporate values
From single gifts to systematic partnership

The companies making 1% pledges aren't looking for charities to enhance their CSR reports. They're looking for partners to help deploy committed capital effectively. They've already decided to give—now they need to decide where.

Sir Chris Hohn talks about "the joy they could have by sharing their wealth." But joy requires the right partner—a charity that understands not just the gift, but the philosophy behind it.

The £230 million already flowing from UK 1% pledgers is just the beginning. As more businesses join this movement, the opportunity multiplies. But only for charities ready to think differently about corporate partnership.

Get in touch!

Ready to tap into the 1% movement? Whether you're seeking fundraisers who understand structural philanthropy or need guidance on positioning for corporate partnerships, Fern Talent's network of thousands of specialists includes experts in innovative corporate giving.

We connect charities with fundraising talent who understand that the future of corporate giving isn't about asking better—it's about partnering smarter.

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