Modern Philanthropy: New Ways for Organizations to Target HNWIs

Modern Philanthropy: New Ways for Organizations to Target HNWIs

  • August 2016 •
  • 46 pages •
  • Report ID: 4050388 •
  • Format: PDF
Modern Philanthropy: New Ways for Organizations to Target HNWIs

Summary
With the volume of HNWIs rising across the world, the global philanthropic sector is poised for long-term growth. In 2015, the total global HNWI population was estimated at 17.7 Million individuals with an average wealth of US$3.83 Million per individual. The number of HNWIs is projected to grow at a forecast-period compound annual growth rate (CAGR) of 3.03%, to reach over 20 Million individuals in 2020. The Americas region currently has the largest HNWI population with 6.3 Million, followed by Europe and Asia-Pacific. Asia-Pacific is forecast to overtake Europe by 2020 to reach 6.2 Million HNWIs. The Middle East and Africa had the lowest HNWI population in 2015 with 609,159 individuals.

Global HNWI population preferred to engage in health-related causes, followed by academic causes and culture. Academic causes were the most important for philanthropic donors in Asia-Pacific, representing 27.8% of HNWIs. Health and culture were the most preferred philanthropic causes among HNWIs in Europe with 27.7% and 22.5% respectively. In the Americas, and the Middle East and Africa philanthropy towards health with 25.0% and 25.1% respectively was followed by academic causes.
HNWIs aged under 45 are most likely to donate to health-related causes with 32.0% of HNWIs, compared to 25.1% of those aged 45–64, and 23.3% of those aged over 65. HNWIs aged under 45 also show strong affinity towards humanitarian causes with 23.8% of HNWIs, while those aged 65 and over are less likely to contribute towards the same cause. At 12.5% and 10.7%, younger HNWIs are less likely to have an affinity for cultural and academic causes than older HNWIs.

Social enterprises act as vehicles in fostering impact investment growth by bringing together potential investors and social initiatives. However, most not-for-profit organizations or social enterprises operating on the demand side are philanthropic in nature and have limited experience in business. This lack of experience makes it risky for investors to allocate funds. For non-profits and charitable organizations, wealth managers have emerged as a likely partner in targeting HNWIs for philanthropic giving.
Advisories can be formed to help philanthropists in selecting the right business for investments, and managing microenterprises in developing a profit and growth. As a result, this modern approach to philanthropy will transform it into a more organized and impact-oriented sector, enabling advisors to strengthen client relationships.

The report “Modern Philanthropy: New Ways for Organizations to Target HNWIs” examines specific trends in the Americas, Europe, Asia-Pacific, the Middle East and Africa. For each region, the motives of HNWI philanthropists are analyzed by age, gender and their wealth band.

In depth, this report provides the following analysis -
- Examines the HNW population, attitudes of philanthropists and their preferred philanthropic causes, and identifies the key differences in giving.
- Analysis of the key giving patterns of HNW philanthropists from WealthInsight’s proprietary HNWI database and looks at HNWIs’ preferred philanthropic causes and segments them by age, gender, wealth band and region.
- Provides an in-depth analysis of current trends in philanthropy, covering foundation work, social entrepreneurship and collaborative philanthropy.
- Helps to identify new approaches that philanthropic organizations should take when targeting HNWIs.

Companies mentioned in this report: The Charities Aids Foundation, JP Morgan Chase, Barclays, Family Bhive, Bill and Melinda Gates Foundation, the Ford Foundation, Azim Premji Foundation, BNP Paribas, Foundation Source, Neo Philanthropy, the Rockefeller Philanthropy advisors, St James’s Place Wealth Management, Citi Group, Goldman Sachs, Acumen Partners, Yes Bank, Embrace, Liter of Light, Digital Green, Capricorn Investment Group, Khosla Impact Fund, US Trust, RBC, Water Street Family Offices, US National Advisory Board, International Development and Commonwealth Developments Corporation.

Key Findings
The report is divided into four chapters, which cover the following areas:

- Understanding HNWI Giving Attitude
- Current Giving Patterns
- New Trends in Philanthropic Giving
- New Ways to Target HNW Philanthropists

Synopsis
The report examines the attitudes of high net worth (HNW) philanthropists and their preferred philanthropic causes, and identifies the key differences in giving. It looks at preferred philanthropic causes of high net worth individuals (HNWI) based on the analysis of GlobalData's proprietary HNWI database and segments them by age, gender, wealth band and region. The report provides an in-depth analysis of current trends in philanthropy, covering foundation work, social entrepreneurship and collaborative philanthropy and identifies new approaches that philanthropic organizations should take when targeting HNWIs.

Reasons To Buy
- Understand the attitudes of HNW philanthropists and their preferred philanthropic causes, and identify key differences in giving.
- Gain insight into key giving patterns of HNW philanthropists based on a unique analysis of GlobalData's proprietary HNWI database, comprising 140,000 dossiers.
- Be informed about HNWIs' preferred philanthropic causes according to HNWI's age, gender, wealth band and region.
- Analyze current trends in philanthropy, including foundation work, social entrepreneurship and collaborative philanthropy.
- Identify new approaches that you should take when targeting HNW philanthropists.

Key Highlights
- The number of HNWIs is projected to grow at a forecast-period compound annual growth rate of 3.03%, to reach over 20 million individuals in 2020.
- The global HNWI population preferred to engage in health-related causes, followed by academic causes and culture.
- Although health was the most popular cause for both males and females, 29% of female HNWIs are more inclined to contribute to this cause, compared to 23.7% of men.
- Financial returns and long-term social change drive investors towards impact investments.
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