Wealthy Americans want to be more knowledgeable in their Giving.
As we await the release of our own Giving Australia 2016 Study, the bi-annual giving report by U.S Trust on High Net Worth Individuals in America, reveals some tale telling signs that more informed and impactful giving is on the rise.
Some of the key takes outs worth considering for your own giving
High Knowledge = Greater Fulfillment. Donors with higher charitable giving knowledge tend to have a greater personal fulfillment from their giving and give higher amounts on average. The study showed that all of those who considered themselves “Experts” in their giving, experience personal fulfillment. This compares to “Novice” givers, where 82% experience personal fulfillment. In addition, almost all (94%) wealthy individuals would like to be more knowledgeable in at least once aspect of their charitable giving, showing a growing interest in donors wanting to be more informed and engaged in how they give.
What drives wealthy donors? Wealthy households cited that believing in the mission of the organisation (54%) as the primary motivation to give, followed closely by believing their gift can make a difference (44%). Only 18% are swayed by tax benefits. Giving is a personal journey. Therefore, focus on supporting organisations and causes that you resonate with, who align strongly with your personal and family values and who you trust will use your money wisely.
The biggest challenges in giving – the greatest challenge identified by wealthy donors when giving is determining what causes they care about and deciding where to donate (76%). As we also see in Australia, there is a burgeoning growth of non-profits and social enterprises and ensuring your gifts make a difference by supporting the right organisation is often very difficult. Engaging experts to help determine your giving focus and research which organisations will deliver the highest impact can give you more confidence and satisfaction in your giving.
Engaging Family in giving is personally rewarding – sadly, most wealthy households who reported having children, grandchildren or younger relatives, did not engage them in their charitable giving decisions (71%). Of those that did involve the younger generations, 77% found it personally rewarding, with almost half of the respondents noting that younger generations were interested in participating in giving decisions. The importance of involving children in giving or volunteering not only creates more positive communication and a sense of purpose for the family, but can also bring family members closer together by focusing on decisions that don’t impact ourselves.
To make your giving more personally rewarding, impactful or a true family affair, please contact us to learn more.
GivingSimple aims to grow philanthropy in Australia by supporting individuals, families and businesses put in place their own structured giving program, without the costs and administration burden of establishing your own charitable structure.