Wealthy Women Donors Willing to Take Big Risks, Report Says

Wealthy women who give to female-centered causes are drawn to support international programs and prefer specific charities over foundation funds that pool money to support women and girls, according to a new report.

The report by the Women’s Philanthropy Institute at the Lilly Family School of Philanthropy offers a glimpse into the evolution and thinking of some high-net-worth female donors. It combines previous research with interviews with 23 women, all but one of whom is a member of the Women Moving Millions philanthropic network. Women in that group have given or pledged at least $1 million to charities that benefit women or girls. Ten of the 23 women said 75 percent or more of their philanthropy is directed at those causes.

Most of the interview subjects were age 45 to 65. Fourteen participants disclosed that their net worth was more than $20 million, while 21 reported a net worth of at least $1 million. Two did not disclose their wealth holdings. The women were given pseudonyms to protect their privacy.

Among the findings from the interviews:

• Most donors said they gave through either a donor-advised fund or a family foundation.
• Ten participants said they have made impact investments but defined those broadly, including investing in or supporting women-owned businesses.
• Through the interviews, donors expressed a deep interest in giving strategically and focusing their support on groups that promote systemic change rather than Band-Aid solutions to problems. “I was really interested in funding organizations that went upstream and try to address the root of the problem,” said “Sheila.”
• The women also expressed a high tolerance for risk, contrary to much research on high-net-worth donors. “Joan,” who supports charities that fight child sex trafficking in America, said, “I love gap funding. I love to be the first money in.” Said “Laura,” “If you get everything right, you’re probably not taking enough risk.”
• Most interview subjects rejected the term “philanthropist.” Said the report, “Many women associated it as defining an outdated, patriarchal, and paternalistic donor, a type of donor they did not want to emulate.”
• Few participants expressed interest in being publicly acclaimed for their giving. Said “Alice:” “If no one ever names anything after me, I’ll be very happy.”