Esmée Fairbairn Foundation – one of the UK’s largest independent grantmaking foundations – was established in 1961 by Ian Fairbairn as a memorial to his wife, Esmée. Ian Fairbairn was a leading city figure who entered the embryonic unit trust business back in the early 1930s, stemming from his concern that most people had no access to stock exchange investment, and were therefore precluded from investing their savings in equities and sharing in the country’s growth.

Subsequently his company, M&G, pioneered the UK unit trust industry and he later endowed the foundation with the greater part of his own holding in the company.

In 1999, Esmée Fairbairn Foundation sold its holding in M&G when it was taken over by Prudential Corporation, resulting in a significant rise in the value of the foundation’s endowment – and consequently, the size of its grantmaking. The foundation’s remit also grew to include making grants to organisations that aim to improve the quality of life for people and communities in the UK. During 2006, 1,549 eligible applications were made, of which 581 grants were awarded, totalling £27.3 million across four programmes: Arts and Heritage, Education, Environment, and Social Change: Enterprise and Independence.