We need to be more American to solve the UK’s philanthropy problem

British philanthropy has long been a "hush-hush" affair, but growth is not delivered by quiet intent. By openly celebrating donations and their impact, philanthropists can work alongside regional mayors across England to legitimise, shout about, and shape effective regional giving.

While the UK sees high levels of philanthropy compared to the rest of Europe, these donations are profoundly unequal across the nation. The capital accounts for around a fifth of the UK’s GDP, so it should come as no surprise that the richest region is able to give the most.

London’s economic dominance extends to charitable giving; it receives more than a third of the £14 billion given by philanthropic foundations and four times the Gift Aid value of donations compared to the UK average. Needless to say, this creates a funding shortfall for many of our most disadvantaged communities across the UK.

However, there are encouraging signs of change. Increased awareness about the effectiveness of place-based giving may offer the solution we’ve all been waiting for. There are already many great examples across the country. This approach brings together wealthy individuals, foundations, and local authorities to reshape communities. It offers fresh hope for underfunded projects across the country and provides local people with tangible proof that regional wealth can be effectively deployed right on their doorstep.

Still, many cities lack this infrastructure due to the absence of a standardised system. Existing local giving is fragmented and spearheaded by individuals, rather than embedded in communities. Overcoming this requires a shift in culture and incentives.

The potential is staggering. A recent report, ‘Partnering for Place’ by AchieveGood and the Impact Economy Collective (funded by The Rigby Foundation), highlights that mayors hold the key to unlocking £100 billion in philanthropic capital for local communities. The West Midlands and Liverpool City Region are already tapping into this. The new report provides practical advice to help mayors work more effectively with local philanthropists to enable positive change in their communities.

Crucially, the report shows that this isn’t just about large donations but about building trusted local partnerships that make giving easier and more visible. It highlights simple, practical steps - like creating shared local funds, aligning philanthropic efforts with mayoral priorities, and improving data on community needs - so donors can see where their money will have the greatest impact. For the public, this means more transparent, accountable giving that delivers real, measurable change in the places people live and work.

The real power of a place-based giving approach is that it enables leaders to mobilise local wealth to address specific community needs, avoiding the setbacks of a “one-size-fits-all” strategy. If we are serious about levelling up opportunity across the country, it is time to unlock this hidden capital and put it to work tackling some of our most pressing social challenges.

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Steve Rigby is CEO of Rigby Group, and Chair of The Rigby Foundation, Project MADE, and Family Business UK (FBUK).

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