Giving by British Rich Stagnates

Britain’s wealthiest families donated about the same amount in 2009 as in 2008, raising questions about government hopes that philanthropy will offset cuts in public spending and usher in the “Big Society” touted by Prime Minister David Cameron, writes the Financial Times.

According to research by the Cass Business School, British family foundations gave $2.25-billion last year, about the same as in 2008. Foundation funds are viewed as key to keeping charities afloat as the government simultaneously cuts back on grants and seeks greater provision of public services from nonprofit groups.

“There has not been such a strong emphasis here on private philanthropy because of the public funding of welfare,” said Cathy Pharoah, a Cass professor. “But obviously that’s all being rolled back so it’s going to be essential in future.”

Plus: Government financing of charities could grow over the next five years, despite the budget cuts, if the government follows through on plans to increase the nonprofit world’s role in several key service areas, Third Sector Online reports.

The Association of Chief Executives of Voluntary Organizations predicted contract income could increase by $3.2-billion through 2015 as local and central-government agencies contract out more work in community health care, youth services, and other areas.