The Denise Coates Foundation, founded by billionaire Denise Coates, the CEO of Bet365, has garnered attention for its recent reduction in charitable donations from £9m to £6m, despite a significant increase in reserves.
This article explores the financial aspects of the foundation's charitable activities, shedding light on the figures and examining the factors influencing their donation decisions.
According to the recently filed accounts at Companies House, divisions of the Bet365 empire donated £100m to the Denise Coates Foundation in the year ending on 28 March 2021.
Simultaneously, the investments held by the charity experienced a remarkable growth of £86.5m. Consequently, the foundation's reserves surged from £385.3m to £568.4m, representing a substantial rise of 48%.
Despite the growth in reserves, the volume of charitable donations declined from £9m in 2020 to £6.2m. The foundation attributes this decline to the constraints imposed on the activities of the organizations it funds. However, the foundation anticipates a bounce-back in future years, suggesting that the reduced donations are temporary.
While the Denise Coates Foundation's increased reserves have sparked interest, it's important to note that the charities regulator does not impose strict policies on the proportion of reserves relative to donations. The Charity Commission's guidance emphasizes that there is no universally applicable level of reserves for all charities. Organizations with surplus reserves are advised to reassess their spending and consider aligning their purposes for more effective operations.
The Denise Coates Foundation addresses the issue of reserves in its attached accounts, outlining its policy of using donations from the Coates family business empire to build up cash and investment reserves. The goal is to operate the foundation on an enduring basis without relying heavily on donations from any single source.
Income and gains from investments are subsequently distributed over a period of one to five years.
The foundation's donations in 2021 included substantial contributions to the University Hospitals of North Midlands, supporting the NHS trust in Stoke-on-Trent. Other recipients of the foundation's generosity included the Chronic Disease Research Foundation, the Douglas Macmillan Hospice, and the Kick4Life project in Lesotho.
However, it is worth noting that the foundation did not allocate funds to charities specifically addressing gambling-related harm.
The Denise Coates Foundation's recent reduction in charitable donations, despite the substantial growth in reserves, has prompted discussions about their giving strategy. While the precise reasons behind the donation decline remain unclear, the foundation maintains a long-term approach, building reserves to ensure sustained operations and impact.
As the foundation continues its philanthropic journey, the spotlight remains on its contribution to society and the potential for even greater charitable giving in the future.