'Philanthropology: The Evolution of Giving' - Barclays Wealth identifies the characteristics of today's wealthy philanthropists
14 December 2009, London
New research explains how factors such as age, source of wealth, religious or political beliefs are influencing the ways in which high net worth individuals give to charity.
- New report reveals the shifting attitudes of today's wealthy, and their changing approaches to engaging in philanthropy
- Six typologies identified based on differing motivations for giving: Privileged Youth, Eco Givers, Altruistic Entrepreneurs, Reactive Donors, Cultured Inheritors and Professional Philanthropists
A new white paper launched today by Barclays Wealth, the leading global wealth manager, brings to life how the wealthy's attitudes to philanthropy are evolving, by identifying some of the key motivations behind their giving. Entitled 'Philanthropology: The Evolution of Giving', the analysis reveals six different typologies, all with different characteristics and motivations.
The ways in which people engage in philanthropy have changed. 'Philanthropology: The Evolution of Giving' explores how this has shaped six clearly defined profiles. The findings explain how factors such as age, source of wealth, religious or political beliefs are influencing the ways in which high net worth individuals give to charity, and impact their decisions for supporting certain causes.
This white paper is based on fresh analysis of Barclays Wealth's 'Tomorrow's Philanthropist' report, which recognised that 21st century donors, characterised as 'Go Givers', aim to make as big an impact as possible and take an entrepreneurial approach to their giving. This is now additionally supported by the characteristics of the six typologies indentified.
Emma Turner, Head of Client Philanthropy at Barclays Wealth commented: "This new analysis gives us further insight into how the philanthropic activity of today's wealthy is evolving, and how certain characteristics are emerging as a result of this. Today, the philanthropic landscape is increasingly diverse and global. Consequently, the way people engage with it is constantly changing."
Based on findings from 500 high net worth investors in the UK and US, the study identifies the following diverse typologies:
Privileged Youth: Typically younger, and have inherited their wealth. Give their time and energy to charitable causes as a means of offsetting some of their guilt about their comfortable lifestyles. They are very generous with their time, and use their social networks to support predominantly social welfare causes across the globe.
Eco Givers: Eco Givers are most likely to be young females who have worked hard for their wealth. They are demanding of how their donations to charity are spent and, fundamentally concerned with the issue of climate change, this group predominantly supports environmental charities.
Altruistic Entrepreneurs: Middle-aged business owners with strong ties to their roots, this group's wealth is self-made. With a strong belief that successful people have a duty to share their wealth, their philanthropic behaviour is often driven by their desire to support the communities in which they grew up.
Reactive Donors: Predominantly high-earning male executives, this group usually gives to charity because they believe that it is expected by their peers, rather than through a social or moral motivation. They also tend to give indirectly, through purchases from brands that support charities.
Cultured Inheritors: In their late 50's and 60's, this group's wealth tends to be self-made although they also have inherited wealth. They plan to bequeath their wealth to their families. They wish to continue to the legacies of their parents, who may also have been heavily involved in charitable work. Their social and moral beliefs drive their motivation to give.
Professional Philanthropists: Consisting of high-level executives and successful business owners, this is the oldest group and their wealth is almost exclusively self-made. They support causes not only through donations but also by offering their business expertise, leading them to be more demanding of charities as they want to see the impact of their donations.
Barclays Wealth's 'Tomorrow's Philanthropist' report, published in July 2009, found that respondents are still highly committed to giving, despite their assets and businesses being under strain in challenging economic conditions. The research revealed that three quarters (75 per cent) of respondents have not decreased their charitable contributions, whilst more than one in four (26 per cent) have increased their giving in the last 18 months.
Emma Turner continued: "This intelligence on the different types of philanthropists and their characteristics should benefit charities and causes, as it provides a further, encouraging snapshot of people's giving in the future. Alongside traditional giving, charities should increasingly be welcoming the non-financial support and entrepreneurial skills that a lot of today's wealthy can bring."
For further information contact:
Barclays Wealth, Corporate Communications
Will Bowen +44 (0) 20 7114 8434
Lucy Davidson +44 (0) 20 7114 9813
Cohn & Wolfe
Will Spratt +44 (0) 20 7331 2367 / 07947 427312
Hannah Mercer +44 (0) 20 7331 2359 / 07956 606 662
About this report
'Philanthropology: The Evolution of Giving' was authored by Ledbury Research on behalf of Barclays Wealth, to understand in more detail the different philanthropic motivations and personalities behind the complex wealthy populations in the US and UK.
The report is based on segmentation modelling (using both factor and cluster analyses) by Ledbury Research, derived from a large scale study of 500 high net worth individuals in the UK and US (all with investable assets of over £500,000/$1m), including over 150 ultra high net worth individuals (all with investable assets over £3m/$5m).