Is it indecent to ask, as news of losses, takeovers, bailouts and redundancies hits the headlines, how much the corporate sector is spending on charity? Companies are often exhorted to give more back to the community. But is this just another stick to beat them with? Figures published this week on the charitable giving of the top 300 corporate donors last year showed that corporate donations to charities (both at home and abroad) – their worldwide community investment (WCI) – reached a record high of £1.4 billion.

Corporate giving has been steadily climbing since the early 1990s, although if previous trends are anything to go by, the credit crunch in the financial markets may signal an end to this trend in corporate generosity. The banking and financial services sector contributed 31 per cent of investment in 2007. Despite the growing crisis in this sector it has, until recently, dominated corporate giving, meaning that charities will be at risk now as profits fall and the sector is restructured. The collapse of Lehman Brothers ended its era of valuable charitable giving. Northern Rock Foundation’s budget was safeguarded but lower, while the potential impact of a Lloyds TSB HBOS merger on combined charitable giving remains unknown, as both are major donors. Bradford & Bingley, postnationalisation, has to give some priority to existing commitments but new developments may be jeopardised.

So, who might help to take the place of the banking sector in supporting charities? The evidence of 2006-07 showed the natural resources and mining sectors emerging as new forces in corporate giving, as reflected in Rio Tinto’s WCI increasing from £47.6 million in 2006 to £53.9 million in 2007. But in this volatile economic environment, last year’s trends are not a crystal ball showing the future, and Rio Tinto’s fortunes, and oil prices, have both taken a tumble in recent months. Companies from both these sectors, however, were beaten in the generosity stakes by Tesco, which was the fastest-moving big corporate donor last year with donations of £54.5 million.

The challenge for charities is to identify how a recession will affect consumer priorities, the corporate and other major donor landscapes, and which companies might have a competitive advantage. Will the gambling industry, for example, one of the biggest donors within the leisure industry at £5.8 million, see turnover grow as people seek distraction from current worries, or have more leisure time through unemployment?

Alternatively, could a new era of responsibility see companies valuing their donations to domestic charities – their Corporate Community Investment (CCI) – more highly? CCI is the most visible face of corporate social responsibility; when harsh business cut-backs are implemented, CCI could be valuable for reputation. Additionally, giving could create a feel-good factor in hard times. A very small increase in CCI budgets would represent a huge increase to charity budgets. Of course companies will look harder at the impact of giving, and charities should tailor their “ask” in a new spirit of realism and partnership if they are to address social need.

Professor Pharoah is the co-director of the Centre for Charitable Giving and Philanthropy at Cass Business School

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