Rethinking corporate giving – why unrestricted funding creates greater impact

A shift is happening in the world of corporate giving. More businesses are embracing trust-based philanthropy and unrestricted giving. By giving charities the freedom to spend funds where they are needed most, companies are driving deeper social impact.

It is an approach that Ambassadeurs Group (AG) favours. ‘Without a defined project or outcome attached, it may seem harder to demonstrate impact. But by aligning with a charity’s overall strategy, we are supporting the areas where they can make the greatest difference. Charities understand their communities and their challenges better than anyone,’ explains Krishna Hathi, Charity Initiatives Adviser at AG. ‘It transforms the relationship from a transaction into a partnership built on trust, collaboration and shared goals’

AG and unrestricted giving

This practice links to AG’s overall approach to corporate philanthropy. Each year the staff – the WorkFamily – put forward charities to support. The shortlisted charities then pitch to a panel representative of the AG business for funding. Staff choose the charities because of their overall mission or vision, rather than because of any specific project.

Krishna is clear that unrestricted giving doesn’t mean its impact can’t be measured: ‘Depending on the charity, we are able to navigate each donation individually. We have regular discussions with and reports from the charities we partner with, and have found that with the funds going to where they’re needed most, there is more real impact to share and more stories to be told.’

James Hails, Director of Fundraising and Communications at London Youth, which is one of AG’s 2026 key charities, says: ‘Unrestricted giving gives us flexibility. It enables us to meet the ever-changing need that is before us. Things will crop up in any year. This could range from needing an alarm for our main building, to unexpectedly high electricity bills, to funding new posts in a team.’

At London Youth income streams and expenditure are clearly defined. Every financial year there is a fundraising target to reach and areas from which those funds might come. They include high net worth donors, trusts and foundations, and corporate partners like AG. A portion of this income tends to be unrestricted, and it means the charity can put more resources in areas as they are needed without having to plan in advance.

The interim report from the Milburn Review, commissioned by the Department for Work and Pensions, directly impacts London Youth. It is an example of an area where London Youth could use unrestricted funding to examine some of the areas highlighted and by doing so help tackle one of society’s big issues. The review, led by former Labour Cabinet minister Alan Milburn, was designed to address the spike in youth economic inactivity. The interim report in May 2026 warned that Britain faces a ‘lost generation’ of nearly one mission young people (aged 16-24) who are trapped entirely outside the economy.

The final report is expected in Autumn 2026 – its findings could not have been predicted at the start of the year when funding budgets were set at London Youth. The charity has already worked on its strategy to specifically focus on its place and purpose to help tackle youth unemployment. ‘Youth clubs can help with everything from social interaction, sport, mental health, and ultimately getting young people into workplaces and into work,’ says James.

Helping charities help more

For corporate donors, unrestricted giving can appear to mean a loss of control. But James argues it is crucial in the overall mix of funding for London Youth, and that it delivers strategic advantages for the donor. ‘The background is traditionally transactional in corporate partnerships,’ he explains. ‘But increasingly there is now a move to a more strategic relationship, and with it a recognition that companies need to give more than just money. It is about trusting the charity to deliver and use the money for impact and then looking at the impact report for progress overall. For London Youth that would be evidence of building confidence in young people, supporting them in mental health issues and into employment.’

All corporate giving matters

Charities face an unprecedented squeeze today. Around 185,000 charities that are actively competing for the same pots of money. A combination of burning through reserves during the pandemic and navigating new challenges such as the flood of automated AI applications for funding, means non-profits are stretched thin. To navigate and survive, charities require a balanced funding model. ‘We need high value funding – which doesn’t dismiss lower value – but high value comes with commitment, sometimes over several years,’ explains James. ‘If we have multi-year commitment we can build sustainable income streams. Add to that a good level of unrestricted funding and it means we can also be flexible.’

By championing this flexible model, corporate partners like AG allow charities to move past short-term crisis management and focus on long-term, systemic change.