Younger ‘Ultrawealthy’ Donors Tend to Focus on Fewer Causes, Study Shows
By Emily Haynes
Senior Editor, Nonprofit Intelligence
December 3, 2019 | Read Time: 2 minutes
Donors whose net worth is $30 million or more make about 25 percent of all individual gifts to U.S. charities, according to a new study by research firm Wealth-X. These gifts amounted to a total of $153 billion in 2018, not including any additional gifts they may have made through their businesses.
The study analyzes giving behavior by wealthy donors who contributed $50,000 or more from 2014 to 2018. Education charities receive the most gifts from these donors, which the study described as “ultra wealthy,” with more than 85 percent contributing to an education nonprofit during those five years.
While the top three causes — education, social services, and health care and medical research — are consistent across age groups, how ultrawealthy donors support these causes differs by generation. For example, younger ultrawealthy donors are more likely to focus on fewer causes with both their time and money. The study’s authors say this trend will become more pronounced as their wealth grows and they get a bigger say in how their families give.
Other trends to watch include public pledges, through which corporate and individual donors come together to commit to charitable giving, according to the study. Companies that participate in the Founders’ Pledge, for example, agree to donate 1 percent of their equity to charity.
Ultrawealthy donors are also increasingly interested in substantive involvement in a charity through efforts including board membership and volunteering.
Among the findings:
- Social services, health, and the arts are other popular causes for ultrawealthy donors.
- Ultrawealthy donors are increasingly consulting wealth, tax, philanthropy, and business advisers before they make giving decisions.
- About half of all global gifts from ultrawealthy donors in 2018 were made in North America.
Emily Haynes has covered fundraising on social media, Giving USA’s annual report on giving trends, and how the ALS Association found success with the ice-bucket challenge. Email Emily or follow her on Twitter.
