Charitable giving from UK family businesses may prove more resilient than other companies, despite the recession, a new report from the Institute of Family Business (IFB) and Community Foundation Network (CFN) says.

“The general public’s trust in the business community is currently in question,” said Grant Gordon, director general of the IFB. “This report can hopefully address some of those concerns by shedding light on how the family business sector is demonstrating leadership in philanthropy.”

Family businesses make important contributions to local communities, says the report. Their efforts are likely to be sustained despite the current economic climate due to a number of characteristics as outlined in Natural Philanthropists: Findings of the Family Business Philanthropy and Social Responsibility Inquiry.

The report identifies six features of family businesses that shape and encourage their socially responsible activities:

• Family business model. The overlap between stakeholders – family, employees and the community – enables socially responsible behaviour to be effective.
• Passion. Family businesses do not always need a business case for philanthropy. The family name and reputation gives the motivation.
• Localised nature. Most family businesses recognise that their success is enabled by the support of the community in which they are located, creating a desire to give back.
• Stewardship. Family businesses are built to be passed on to the next generation. They are building an enduring legacy and that goes beyond the necessity for short-term profits.
• Pursuit of non-monetary goals. Social, environmental and sustainability considerations are given credence alongside financial performance.
• Inter-generational transfer of values. Philanthropy can be used to transfer family values to the next generation.

Stephen Hammersley, chief executive of the CFN, said UK family businesses are leading the way in developing community philanthropy: “They punch above their weight when it comes to supporting, encouraging and funding local charitable organisations, particularly in recessionary times.”

The report was written by Beth Breeze, publications editor of the Philanthropy UK Newsletter.

The report is available from the IFB website.