Unit 2: Wealthy Families
Donors of all means want to pass on the spirit of generosity to future generations. What motivates the wealthier of those individuals and families to do so, and to seek help in doing so?
READ (6 minutes): The 6 Motivations for Family Philanthropy
NCFP President Ginny Esposito outlines the six most common motivations heard in conversations with hundreds of donors and families.
READ (60 minutes): U.S. Trust® Study of High Net Worth Philanthropy
U.S. Trust and the Indiana University Lilly Family School of Philanthropy co-sponsor this biannual nationally representative random sample U.S. households with a net worth of $1 m\illion or more (excluding the value of their primary home) and/or an annual household income of $200,000 or more. NCFP looked at the studies with 2015 and 2013 data. Key highlights:
- In 2015, 49% of donors described themselves at novices, 47% as knowledgeable, and 4% as expert in charitable giving. Increased perceived expertise correlated with increases in: the likelihood of working with a philanthropic advisor (such as a community foundation), personal fulfillment gained from giving, time spent in monitoring gifts, and confidence in the impact of giving.
- In 2015, the top challenges to charitable giving were: identifying what they cared about and deciding where to donate (67.3 percent), understanding how much they can afford to give (49.8 percent) and allocating time to volunteer with the organizations they care about (45.3 percent).
- In 2015, 94% said they would like to be more knowledgeable about at least one aspect of charitable giving. Identifying the right volunteer opportunities and becoming more familiar with nonprofits were the top choices, followed by engaging the family in giving. Unfortunately, only 23% consulted with an advisor regarding charitable giving and community foundation staff were near the bottom of the list of options.
- In 2015, only 21% of households had family traditions around giving and only 29% actively involved children or grandchildren in giving. Those percentage were much smaller than previous studies because the latest study had more young families participating.
- In both studies, parents’ and grandparents’ primary worries about involving heirs in giving were inconvenience (time, geography), not knowing how to do so, lack of interest in participation, and differences in charitable priorities.