Only 36 percent of the world’s ultra-high-net-worth individuals — people who have a net worth of $30 million or more — are involved in charitable giving, according to a new report published by the Milken Institute Center for Strategic Philanthropy. The report pulls together information from multiple studies and research projects that examine giving by the very wealthy.
In addition, more than 50 percent of high-net-worth individuals — people whose net worth is $5 million or more — don’t know whether their giving has any impact, and 78 percent are not monitoring or evaluating the effectiveness of their charitable donations, the study says.
People who are 50 or older hold 85 percent of the world’s wealth, and although the world’s wealthiest people are predominantly men, one-seventh are women — and the report’s authors say their numbers will grow.
Moreover, about 92 percent of ultra-high-net-worth women give to charity. They contribute more than their male counterparts, when analyzed as a share of their net wealth, according to the report. As women assume larger roles as philanthropists, nonprofits that support women and girls are booming, say the study’s authors.
The report, Stepping Off the Sidelines: the Unrealized Potential of Strategic Ultra-High-Net-Worth Philanthropy, aims to encourage and motivate the world’s wealthiest to give more and to be more strategic, especially given the unprecedented need brought about by the pandemic and social unrest.
Milken officials point out that although more than $11 billion in charitable giving has gone toward helping those in need because of the Covid-19 pandemic, the wealthy are holding on to much more that could be directed to nonprofits. With as much as $40 trillion in family wealth expected to transfer across generations over the next 20 years, the amount of money available for philanthropy is expected to grow, the officials say.
“We often hear from philanthropists that getting started can be a daunting process,” said Melissa Stevens, executive director of the Milken Institute’s Center for Strategic Philanthropy. “But the issues we are seeing in light of the pandemic and civil unrest over the last few weeks are a call to action. Smart, strategic philanthropy is about taking risks, testing new ideas, focusing on root causes, and, most of all, collaborating across sectors.”
Among the report’s other findings:
- The United States is home to one-third of the 265,490 ultra-high-net-worth individuals around the globe as of 2018, the highest concentration in the world.
- Roughly 9 percent in that category have made a charitable gift of $1 million or more globally, and the philanthropy of ultra-high-net-worth people accounts for only 20 percent to 30 percent of all individual giving in the United States.
- The men and women who are among the world's wealthiest people, give to the same top four causes:education, followed by social services, health, and arts and culture.
In addition to pushing the wealthiest donors to give more, the report suggests they should:
- Make a greater commitment to building up nonprofits’ operations, including their infrastructure, employees, and technology.
- Diversify their giving just as they do their investments: take a variety of approaches to how they give and vary the groups to which they give.
- Make more of an effort to back experimentation and creative approaches within the nonprofit sector, and turn to philanthropic support organizations, foundations, and wealth advisers with philanthropy expertise to help them learn more about sophisticated giving practices.
For more about big contributions from U.S. donors, see the Chronicle of Philanthropy’s database of gifts of $1 million or more, which is updated weekly, and our annual Philanthropy 50 report, which tracks the biggest U.S. donors’ annual giving going back to 2000.
Advertisement
"Give" - Google News
July 06, 2020 at 07:00PM
https://ift.tt/2Z0Z7wM
New Report Examines Big-Gift Philanthropy — and Encourages the Wealthiest to Give More - The Chronicle of Philanthropy
"Give" - Google News
https://ift.tt/2YqGX80
https://ift.tt/2YquBwx
Bagikan Berita Ini
0 Response to "New Report Examines Big-Gift Philanthropy — and Encourages the Wealthiest to Give More - The Chronicle of Philanthropy"
Post a Comment