How Much Capital Do I Need to Be a Philanthropist?

Philanthropy can start with almost any amount of giving, from pocket change to major fortunes, but the tools you use often depend on scale. In the UK, charities received an estimated £15.4 billion in public donations in 2024, yet only a fraction flows through structured giving vehicles like Donor Advised Funds (DAFs). DAFs held around £2.8 billion in assets in 2023, and grants from UK DAFs were £645.4m last year (up 16% on 2022). In other words, while most giving (over £10bn) comes from everyday donors, DAFs are growing rapidly as a tax-efficient way for wealthier individuals and companies to manage charitable contributions.

A DAF is effectively a “charitable savings account” held by a sponsoring charity. You deposit cash, stocks or other assets into the account, claim any eligible tax relief (e.g. Gift Aid), and then recommend grants to charities over time. The sponsoring charity handles all administration and compliance. This makes DAFs faster and cheaper to set up than a private foundation or trust. DAFs “democratise philanthropy”, meaning you can open an account with as little as £10,000, yet they are also used by very high-net-worth donors (some depositing hundreds of millions).

UK DAF Growth and Impact

DAF usage in the UK has soared in recent years. Contributions to UK DAFs grew from £250.3m (in 2014) to £575.4m by 2019, a 130% increase,  though this remains under 6% of total giving. A 2018 industry report noted that DAF contributions reached £495m in 2016/17 (a 33% annual jump). According to NPT UK’s 2023 data, DAFs now hold £2.8bn in assets with a grant payout rate of ~25%. Most of that money is quickly re-granted to charities (indeed, total grants exceeded total contributions in 2023), but some donors do build funds to invest for future giving.

Getting Started as a Philanthropist

In practice, anyone can give charitably. You need no minimum capital to donate directly to UK charities. But if you want the strategic and tax benefits of a charitable vehicle, you’ll face entry thresholds. For example, many community foundations (which pool local donations) let you start a DAF with only £5,000–£25,000. Established charities like Stewardship (a Christian charity) and CAF operate UK DAFs, but they require larger opening balances. CAF’s Charitable Trust asks donors to place £25,000 into the fund (and keep roughly that as a base balance). Stewardship has tiered accounts: its basic “Giving Account” funds up to £25k, a “Donor Advised Fund” runs £25k–£500k, and a “Philanthropy Fund” is for £500k+. Even boutique providers like The Good Works Company start at just £10k, and Chapel & York’s DAF has no minimum - you can literally open an account with £1 if you wish (though they charge a fixed fee).

Crucially, all DAF donations are irrevocable. Once you deposit money or assets, you cannot get them back - the gift is locked into charitable use. But you immediately get any tax relief at that point, then choose charities later. This can be especially advantageous if you donate appreciated assets (stocks, property, etc.), since you avoid capital gains tax and can claim relief on the full value.

Major UK DAF Providers

Different providers cater to different donors. Entry points vary by provider, from a few thousand up to hundreds of thousands. Smaller donations can still be philanthropic (e.g. via community giving or Give-As-You-Earn schemes), but if you want a dedicated giving vehicle with global reach and tax leverage, expect to contribute at least £10k–£25k. Tax advisors often cite £20,000 as a practical baseline for a UK DAF.

Once a DAF is funded, donors can advise grants to a wide range of charities. Some DAFs focus on domestic UK causes, others allow cross-border giving (with due diligence). Importantly, donors retain control: you can remain anonymous and change grant timing, or even invest the fund in ethical portfolios to grow it for larger impact.

For Example 

Imagine a tech entrepreneur who has just sold a stake in their startup. They decide to pledge 10% of the proceeds to charity. Even a relatively modest £10k deposit into the Founders Pledge DAF immediately triggers Gift Aid and other relief on that donation, then the entrepreneur works with Voltaire’s advisers to coordinate with Founders Pledge to target high-impact causes. Alternatively, a family office might seed a CAF Charitable Trust with £500k, gaining over £100k of tax relief immediately, and then use the DAF’s investment growth to fund multi-year programs. In both cases, the funds must be irrevocable but can be granted flexibly later.

Any Amount Counts

The bottom line is that you don’t have to be a billionaire to be a philanthropist - even modest capital can seed giving. For example, supporting a local scholarship fund or charity project can begin with a few thousand pounds. But if you want tax-efficient, structured philanthropy (like a personal foundation without the cost), you’ll typically need tens of thousands at least. Providers exist at every level, from free services and community foundations for smaller donors, up to bespoke DAFs for ultra-wealthy families. As one industry expert notes, advisors who introduce DAFs to their clients often find it a “win-win” – clients streamline giving, get tax benefits, and charities receive grants more reliably.

Philanthropy is ultimately defined by impact, not bank balance. However, the scale of your capital determines which vehicles and tax breaks are available. By understanding UK DAF minimums and fee structures, donors and advisers can choose the right platform: from a £5k seed fund at a community foundation, all the way to a multi-million-pound international DAF. In short, start at whatever level you can: even £1 can make a difference – but expect “going professional” (and tax-savvy) about giving to require at least low- to mid-five-figure sums.

Voltaire provides end-to-end highly personal guidance from finding the philanthropic giving vehicle that is right for you, to researching and executing high-impact grants that matter.