As we watch the United Kingdom deal with the aftermath of last month’s vote to leave the European Union, those of us in the philanthropy sector wonder what the loss of EU funding will mean for charities reliant on that funding. I asked Ben Rymer to share his thoughts and research once again here on The Intelligent Edge to help us understand Brexit’s potential impact on philanthropy.
While uncertainty rules the day on Brexit’s effect on philanthropy, four things seem reasonable to expect in the wake of the British public’s vote on June 23rd to leave the European Union.
First, Brexit is likely to be bad news for the British macroeconomy. A weaker sterling (the British pound is so far the worst performing currency in the world in 2016), continuing low productivity (see chart below from the Resolution Foundation) and lower profits (the FTSE 250, consisting of mainly British companies, lost £38bn from June 24th-July 8th) are all notable trends.