Press release
Only 8% of civic leaders believe organisations are working together effectively
New research from Benefact Group reveals widespread concern about the state of civic leadership in the UK, with charity and civic leaders warning that funding pressures, siloed working and a lack of collaboration are making it increasingly difficult to address the challenges facing communities.
The research, published today in the inaugural State of Civic Leadership 2026 report, surveyed 427 charity and civic leaders across the UK.
Among the key findings:
- 75% say charity leadership is harder than it was three years ago.
- Just 8% believe charities, businesses, public bodies and communities are currently working together effectively.
- 67% remain confident that organisations and communities can solve social problems together.
- 60% identify a lack of unrestricted funding as one of the biggest barriers to civic action.
- 58% believe businesses can create the greatest value through expertise and pro-bono support, not funding alone.
The findings paint a picture of communities under pressure, but leaders who remain hopeful about our ability to solve challenges together.
Leaders cited rising demand, growing costs and funding challenges as significant barriers, while repeatedly calling for greater trust, less bureaucracy and more long-term, flexible funding.
The report argues that small charities often play an essential role in supporting communities but are increasingly being asked to do more with less.
Respondents consistently highlighted the value of unrestricted funding, describing trust and flexibility as critical to their ability to respond to local needs.
The research also found concern about the health of civic life more broadly. While 46% of respondents described civic and community life as healthy, 38% said it was unhealthy, suggesting a sense that the institutions, relationships and organisations that help communities thrive are under growing strain.
In response to the findings, Benefact Group has launched the Benefact Group Small Charity Impact Fund.
Delivered in partnership with The Fore, the Fund will provide £1 million of unrestricted funding to small charities across the UK, alongside wraparound support and training. Charities with an annual income of less than £500,000 will be eligible for grants of up to £45,000 spread over one to three years.
The fund is designed to respond directly to one of the report’s clearest findings: that charities need flexible, long-term funding they can use where it will make the greatest difference.
The launch coincides with Benefact Group’s inaugural Civic Leadership Forum in London, bringing together leaders from business, charities and civil society to discuss how organisations can work together more effectively to strengthen communities and create lasting impact.
Benefact Group is a charity-owned financial services group whose family of businesses includes Ecclesiastical Insurance, EdenTree Investment Management, Access Broking and Ansvar Insurance. Through its charitable ownership model, the Group has donated more than £250 million to good causes over the last decade and supported more than 10,000 charities.
Mark Hews, Group Chief Executive of Benefact Group, said: “Our research reveals a striking contradiction. Despite growing pressures on charities and communities, people have not lost faith in one another. Leaders believe social problems can be solved together. What they lack are the conditions that make collaboration possible.
“One message came through louder than almost any other. Small charities need trust, expressed through long-term, flexible funding and support. That’s why we’re launching the Benefact Group Small Charity Impact Fund. It’s a practical response to what leaders have told us and the first step in what we hope will become something much bigger.
“As a charity-owned business, we’ve supported more than 10,000 charities and donated over £250 million to good causes in the last decade. We see first-hand both the pressures facing charities and the contribution business can make to strengthening communities. We hope others will join us.”
Benefact Group says the Fund is intended to be the first step in a broader ambition to bring together businesses, philanthropists, foundations, investors and civic leaders around a shared commitment to supporting small charities and strengthening communities.
Benefact Group’s State of Civic Leadership report will become an annual benchmark for tracking the health of civic leadership in the UK and measuring progress on issues such as collaboration, funding and community resilience.
ENDS
Notes to Editors
About the research
- Survey commissioned by Benefact Group.
- Conducted among 427 charity and civic leaders across the UK.
- Findings published in the State of Civic Leadership 2026 report.
About Benefact Group
Benefact Group is an international financial services group owned by Benefact Trust.
Its family of businesses includes:
- Ecclesiastical Insurance
- EdenTree Investment Management
- Ansvar Insurance
Through its charitable ownership model, all available profits are given to good causes. Over the last decade, the Group has donated more than £250 million and supported more than 10,000 charities.
Ecclesiastical Insurance protects many of the UK’s most loved churches, heritage buildings and cultural institutions, while EdenTree Investment Management is one of the UK’s leading responsible and sustainable investment managers.
About the Benefact Group Small Charity Impact Fund
- £1 million fund
- Delivered in partnership with The Fore
- Grants of up to £45,000
- Unrestricted funding
- Available to charities with annual income below £500,000
- Funding can be spread over one to three years
