Survey finds a new breed of young philanthropists with a global conscience
The recession has failed to dampen philanthropic activity on both sides of the Atlantic, according to a new report by Barclays Wealth. The survey of 500 UK and US high-net worth individuals revealed that despite the downturn, one in four have increased their giving in the last 18 months. Three quarters of those surveyed said they hadn't decreased their contributions. If any lifestyle cuts were made at all, said respondents, they were focused on luxury goods, travel and staff.
Emma Turner, head of client philanthropy at Barclays Wealth, said the survey demonstrated a "new generation" of engaged giving—"proactive" donations that showed a growing global conscience. "In the past, the typical approach was for people to give money and then step away," she said. "This new generation of philanthropists are a lot more ambitious and proactive and have perhaps been stimulated by adversity. The findings also show that our younger generations are more socially aware and tuned into global issues."
The so-called "next generation" philanthropist is increasingly interested in supporting global causes, says Turner. A much larger proportion of 18-34 year olds (59 per cent) showed a preference for global charitable causes, compared to less than a quarter (24 per cent) of 35-44 year olds. Only a fifth of 44-54 year olds supported global causes.
There was also a noticeable gender split. Despite the headlines generated by some of the larger foundations over the last year, the survey findings revealed that women are more generous than men, giving away a higher percentage (2.3 per cent) of their net assets than their male counterparts (1.3 per cent). This trend was accentuated in the US, where women give almost twice as much as men.
The report suggested that the wealthy see themselves as a potential replacement for stretched governments. Half of the respondents (49 per cent) said that because many governments are overburdened with debt, it falls on wealthy individuals to plug the donation gap. This view rose sharply to almost three-quarters (72 per cent) amongst younger philanthropists.
"Because many of them have an entrepreneurial streak, they take risks, want value for money, solve problems and generally do things differently. This is changing the philanthropy landscape and the results should benefit charities and causes," says Turner.
That entrepreneurial streak was also picked up in respondents' wishes to control the destination and management of their donations. Fifty-three per cent said that charities are in general inefficient in the management of money. More than half (51 per cent) said that giving is more about investing in individual projects rather than just giving to large charities.
Posted 13 July 2009 : Director.co.uk
