Individuals with an ultra-high net worth (UHNW) constitute a mere 0.004 percent of the world’s adult population. Many of these ultra-wealthy individuals are involved in philanthropic activities and gift-giving, primarily motivated by a personal sense of fulfillment.
In 2015, global giving by the ultra rich grew by three percent, according to a new report from Wealth-X and Arton Capital. The report titled “Changing Philanthropy: Trend Shifts in Ultra Wealthy Giving” found that major giving among UHNW individuals rose to an all-time high in 2015. The report considered people with at least $30 million in net assets as UHNW individuals.
According to the report, an ultra rich individual, on average, will donate $29.6 million over the course of his or her lifetime, with total global UHNW public lifetime giving estimated at $550 billion to-date.
The report found that the rise in the number of gifts slightly outpaced the increase in the total value of gifts, possibly due to the growing popularity of tools such as venture philanthropy, impact investing, and microfinance, which often result in higher numbers of more modest gifts.
It also reveals that UHNW individuals who have donated at least $1 million in their lifetime have an average net worth of about $300 million, and are significantly wealthier than their UHNW peers. Major donors hold a greater share of their wealth in liquid assets, $85 million on average, and typically donate about half of their cash holdings to charity over a lifetime.
Other findings from the Wealth-X and Arton Capital Philanthropy Report 2016 include:
Nearly 70 percent of major donors are self-made, and on average, they are twice as wealthy as their UHNW peers.
Education remains by far the most popular philanthropic cause for UHNW individuals, followed by health, with environmental issues increasing in importance.
Millennials are ushering in new models that combine traditional giving with profit-making endeavors, and are driving employee-based philanthropy.
UHNW individuals are aligning corporate philanthropy with their own personal giving.
The report concludes that the next generations of UHNWIs, who stand to inherit as much as $3.9 trillion in the next ten years alone, are increasingly aware of global social and environmental problems. They are already demanding far-reaching changes in the way they work and in the way their employers interact with the world around them.
Source: Philanthropy News Digest; Wealth-X
Image Credit: Wealth-X