New Philanthropy Capital (NPC) has published Impact UK, which for the first time estimates the scale, scope and power of the UK’s impact economy - contributing £428 billion in gross value added and making up 15% of UK GDP.
The report, for which Mishcon de Reya provided technical support, highlights the scale, vibrancy and diversity of the organisations that form the impact economy, comparing it to other major sectors such as the creative and manufacturing industries. It points to an opportunity for growth, noting that impact-led businesses have tripled over the last decade, and that giving by high net-worth individuals has grown by an average of 18% a year since 2020.
The impact economy is defined as an ecosystem of individuals, organisations and capital prioritising public benefit over private gain. It includes both regulated organisations - charities, universities, community benefit societies, trade unions, housing associations, political parties and Community Interest Companies - and self-regulated, mission-led businesses, friendly societies, mutual insurers and credit unions.
Jonathan Simmons, CEO of NPC and one of the report authors, said: “The UK has a powerful engine for positive change at the core of its economy, which we should be so proud of. Millions of people and organisations, everyday, focused on positively impacting our society. By recognising the impact economy as a dynamic, significant part of our country, we are celebrating the charities, businesses and others bound together by an intention to make a positive difference. At a time when the challenges we face appear significant we wanted to highlight the people who choose to devote money, time and expertise to creating a positive impact, and invite others to join in.”
Chris Willis Pickup, Head of Charities and Social Ventures at Mishcon de Reya, said: "This is an essential and timely report from NPC. It provides valuable, expert evidence to confirm what those of us in the sector have long known: Impact is one of the most significant sectors in the UK, contributing 15% to GDP. The report is also important for rising above the legal definitions and organisation structures across charities, social ventures and other impact organisations – encouraging those of us focused on Impact to view ourselves as a collective and to work together to deliver at scale. This reflects the increasing innovation we see, particularly among philanthropists, moving to an 'impact-first' rather than 'organisation-first' approach to doing good."
Read the full report