Tomorrow's Philanthropist - Study
23 July 2009 at 1:25 pm
A new breed of wealthy philanthropists is emerging who are more socially aware and more motivated to give back to the communities they came from, as well as global causes according to a new study by Barclays Wealth.
The Barclays Wealth Insights reports, developed in partnership with the Economist Intelligence Unit, provides what is described as a comprehensive picture of what it means to be wealthy in the 21st century.
Based on global research with over 600 mass affluent, high net worth and ultra-high net worth individuals and the views of a panel of wealth experts, drawn from academia, industry and financial circles, the report paints a picture of the private world of this influential group, by analysing their shifting demographic profile, priorities and preferences.
Tomorrow’s Philanthropist looks at how philanthropic habits are evolving and how the wealthy will engage with charities and causes in the future.
Set against the backdrop of the global downturn, the report indicates that a younger and ambitious type of philanthropist is emerging – a positive sign for causes and charities around the world.
Here are some of the findings:
The wealthy are still giving despite the downturn – The recession has failed to dampen philanthropic spirit; the commitment of those who already give will remain resolute, and some wealthy individuals are actually increasing the levels of their funding in order to ensure that their charitable goals are met.
The wealthy will play an increasingly important role, compared to governments, in funding welfare projects – The recession will potentially increase the role of the wealthy philanthropist on a broad basis, as governments around the world become more constrained in the causes they can fund. High net worth givers will become an invaluable source of innovation and investment for charities.
The wealthy prefer to fund projects directly – Respondents increasingly feel that they can make a bigger impact and drive change more effectively by giving directly to charities, rather than supporting causes indirectly through taxation.
High net worth donors are becoming increasingly active philanthropists and now seek to solve rather than simply to support – Historically, high net worth individuals have donated money and time to charities to support their endeavours. Now, however, the wealthy are far more ambitious in their philanthropic aims and are wanting to see visible or measurable change.
The worlds of charity and business are converging – Smaller, nimbler and more accountable charities are becoming increasingly attractive to donors compared to the large, traditional charities. This will have a knock-on effect and in the future, we will see the emergence of more commercial ventures which have a philanthropic aim at their core.
The full report, Tomorrow’s Philanthropist, can be found at www.barclayswealth.com