UK foundations were urged to use their biggest strength: patient, risk‑tolerant capital. Speaking to foundation leaders, the Charity Commission set out a pragmatic brief: steward a £100bn flow of charity income with discipline, back longer time horizons, and keep purpose central while demand surges.

On the money side, Commission figures show the charity sector manages roughly £100bn a year, yet that top‑line stability hides stark gaps between large, well‑resourced organisations and smaller providers. The Commission also notes charities are now supporting around three times as many people as five years ago. The Association of Charitable Foundations’ Foundations in Focus report adds a clear signal from the front line: grant applications have risen by 100–400%, forcing tough choices on where each pound goes.

That demand spike changes the role of endowed foundations. Unlike operating charities tied to short funding cycles, endowments can deploy patient capital, take measured risk, and hold a decades‑long view. That puts foundations in a position to back testing, data gathering and capacity building that commercial or government money often cannot touch, and to fund unfashionable issues where the social return arrives slowly.

A useful case study is the repeal of the Vagrancy Act, which criminalised rough sleeping and begging for close to two centuries. Change came through years of research, advocacy and coalition‑building funded by philanthropy, not a one‑off grant round. The lesson for today’s boards is straightforward: meaningful progress usually needs time, not just cheques.

Recent grants show what this looks like in practice. Last year, foundations spent over £8.2bn across causes. The London Marathon Foundation funded projects to get more than 560,000 children and young people active. The Oceans Family Foundation directed over £400,000 into marine conservation, including beach cleans that removed hundreds of kilograms of waste from Solent shores. The Road Safety Trust committed over £2.2m, including virtual‑reality hazard perception testing for tractor drivers. These examples target root causes and build evidence.

The Commission also flagged a fast‑changing operating environment. AI‑generated funding bids are already hitting inboxes, bringing both efficiencies and fraud risk. Boards should ask applicants to explain any AI use, request data provenance for claims, and run proportionate checks before awarding multi‑year support. Digital opportunity is real, but procurement and safeguarding standards have to keep pace.

Regulation is moving in a supportive direction. The Commission’s recent donations guidance states the starting point is to accept donations, subject to the law and a charity’s purposes. That message matters: it reduces unnecessary refusals, signals confidence to domestic and overseas donors, and gives trustees firmer footing when weighing reputational risk against public benefit.

One live debate is whether to transfer more decision‑making directly to beneficiaries and communities. There is value in participation done well, but the Commission cautions against changes that weaken the legal purpose of a foundation. The charitable objects are the anchor; consultation can shape strategy, yet trustees still carry the duty to allocate capital in line with that purpose and the charity’s long‑term interests.

The regulator also cast itself as an enabler rather than a brake, defending charities’ right to operate within the law even when work is contested, and using its permissions process to complete complex gifts. One recent case allowed a major donation of Chinese ceramics to the British Museum while preserving the donor’s intent and public benefit.

For trustees, the practical to‑do list is clear. Re‑test spending and reserves policies against higher demand; align the investment time horizon with planned grant commitments; refresh acceptance policies in light of the donations guidance; set a firm stance on AI in applications; and publish how success will be measured over five to ten years. The goal is to make scarce, long‑duration capital work harder, not faster.

For donors, including SME owners and family offices, the signal is similarly plain. The UK is open to philanthropy and the rulebook is clearer. If you want your gift to carry weight, back operating costs as well as programmes, offer multi‑year support, and be comfortable with evidence building before outcomes scale. Think in decades, not quarters.

Taken together, the Charity Commission’s message reads as a capital‑allocation brief for the third sector: defend purpose, use patience, and keep risk where it can do the most good. With more than 12,000 foundations in play and applications climbing, those that plan over decades will remain resilient, stay relevant to present need, and be ready to act when opportunities appear.