Charities vs foundations: what MPs really think

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Charities vs foundations: what MPs really think

Francesca de Munnich, Association of Charitable Foundations’ Head of Policy and Communications, writes:

In Westminster, charities tend to enjoy instant recognition. They are visible, broadly trusted, and widely understood as part of the public good. Trusts and foundations, by contrast, sit much less clearly in the political imagination.

That difference in perception is striking because foundations are not separate from the charity sector - they are an integral part of it. Foundations are charities in their own right and provide the largest source of the sector’s grant income. Yet policymakers appear to view them through a different lens.

New research by nfpResearch, commissioned by the Association of Charitable Foundations (ACF), highlights just how pronounced this gap is. When asked, 90% of MPs say the charity sector functions for the benefit of society. For trusts and foundations, that figure drops to 65%.

On one level, that reflects a significant perception gap. On another, it highlights an opportunity. Foundations already command the confidence of a majority of MPs, despite being much less prominent than the charities they support. The challenge is not to build legitimacy from scratch, but to ensure parliamentarians better understand the unique role foundations play.

The 25-point gap nevertheless matters. It raises important questions about how foundations are perceived by those responsible for shaping policy and legislation.

Visibility and trust

The explanation is perhaps quite straightforward: visibility.

MPs see charities everywhere - on the parliamentary estate, in their constituencies, through campaigns, briefings, and frontline services. That constant presence builds familiarity, and familiarity builds trust.

Trusts and foundations operate differently. While charities often engage MPs in pursuit of funding and support, foundations are themselves funders of much of the work MPs encounter – and not seen as distinct actors within the wider system.

Influence without recognition

The perception gap becomes even more apparent when it comes to influence.

MPs overwhelmingly recognise the role charities play in shaping policy. More than nine in 10 (91%) believe charities should have a voice in parliament, while 85% say charities' research, expertise and support are important to their work as MPs. Charities are seen as a vital part of policymaking, bringing evidence, insight and lived experience into public debate.

Foundations are less readily associated with that role, despite being key enablers. They have a helicopter view of the fields they fund – less tied to individual solutions and able to see the bigger picture. Yet only half of MPs surveyed see foundations as having an important role in national and local policymaking. This reveals a clear gap between the contribution foundations make and how it is perceived.

A politically split picture

The research also shows that, across both charities and foundations, perceptions diverge sharply along party lines.

78% of Conservative MPs say some charities are too political, compared with 30% of Labour MPs. Foundations are not immune: 75% of Conservatives take the same view of foundations, compared with 32% of Labour MPs. Even when less visible, foundations are still drawn into wider political debates about influence, neutrality, and power.

Some negative perceptions also emerged among Labour MPs. Only 44% of Labour MPs describe foundations as trustworthy organisations, compared with 66% of Conservative MPs. A similar partisan split is evident on whether foundations are seen as experts in the areas they fund.

Bringing foundations into focus

None of this is an argument for foundations to become more like the charities they support. Their role is different - and deliberately so.

But it is an argument for recognition. The findings point to a clear gap between what foundations do and how they are understood in Westminster, reflected in the significant number of “don’t know” responses.

MPs are not critical of the role foundations play. Rather, what is missing is visibility - and with it, a fuller understanding of their contribution. As the UK’s membership association for foundations, ACF will help bring them further into focus – ensuring they are visible, understood and valued.

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