Pandemic Has Changed Giving Strategy for Many Rich People Emily Haynes - The Chronicle of Philanthropy
go to original May 24, 2022

Sixty-eight percent of wealthy donors say they plan to increase their giving in the next two years, and 51 percent say they plan to contribute to more organizations, according to a new study (pdf) of high-net-worth investors. In March, the wealth-management firm BNY Mellon surveyed 200 adults with at least $5 million of investments, asking about how and why they give to charity.

More than two in five wealthy donors say they’ve changed their giving strategy since the pandemic began. That’s good news for fundraisers, as many wealthy donors reported giving more.

Giving was a key feature of almost all respondents’ wealth-management strategies, researchers found. Younger donors were most likely to say they thought about giving to charity as they planned their investments. Every Gen X supporter in the survey — 26 respondents ages 39 to 54 — said that, as did 97 percent of millennial donors, 29 respondents ages 23 to 38.

While philanthropy figured into most respondents’ wealth-management plans, just 27 percent said they primarily gave to charity to receive tax benefits. The survey asked respondents to rank 10 motives for giving from “not at all important” to “extremely important.” The biggest share of donors — 41 percent — said they gave to support causes and charities to which they had a personal tie. Thirty-seven percent said it was extremely important for them to give because it made them happy.

Researchers also asked respondents to identify the factors they weigh as they decide which charities to support, selecting as many as they wanted from a list of 10, such as advertising or recommendation from a friend. Sixty-three percent selected personal ties to the mission. Other top considerations included family giving traditions — 31 percent — and personal appeals for donations by a charity — 29 percent.

Fundraisers have their work cut out for them: Direct solicitation was a top-three consideration for 86 percent of respondents. Just 29 percent, however, ranked it as the top consideration in their giving decisions.

Of all donors surveyed, roughly a third gave to three to five charities in 2021.

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