NEW YORK: Billionaire philanthropists are everywhere, funding everything from free college tuition to ocean exploration to the eradication of polio. With more billionaires donating to more causes than ever, Rockefeller Philanthropy Advisors, a nonprofit launched in 2002 by the Rockefeller family, compiled a report on how the planet’s richest families give away their fortunes. The report, titled Global Trends and Strategic Time Horizons in Family Philanthropy 2020, surveyed more than 200 wealthy, charitable families in 28 countries. The families, who are worth $1.2 billion on average, donated a total of $2.4 billion over the past 12 months, foreign media reported.
“Across the globe, family philanthropy constitutes a rich and dynamic mosaic of legacies, giving cultures, approaches, motivations, and structures,” Rockefeller Philanthropy Advisors CEO Melissa A. Berman wrote in the report. “Through the findings and insights from this study, we hope to create resources for funders that advance the field and practice of philanthropy.” The report’s key findings peel back the curtain on how, why and where the world’s richest people give away their riches.
Sooner rather than later These days, the world’s super-wealthy are looking to put their money to work faster. Nearly one-third of families surveyed said they’re looking to accelerate their pace of giving, with particular focus on seeing results within their lifetime (30% of respondents), concentrating on a few key issues (23%) and transferring assets to key causes with greater urgency (17%).
“Traditionally, families engage in philanthropy without setting an endpoint to their contributions,” wrote Dominic Samuelson, CEO of Campden Wealth, a wealth advisory organisation that co-authored the report. “Increasingly, families have adopted a time-limited approach and concentrated their donations over shorter periods.” Rockefeller Philanthropy Advisers issued an additional report comparing time-limited vs. perpetual time-horizon strategies.
Get The Kids Involved A full 81% of respondents say they try to get the “next generation” involved in shaping the family’s giving in some way. The majority of respondents (65%) stated that instilling philanthropic values and a sense of moral responsibility is their top strategy to engage the next generation.
The reasons for involvement, however, varied by region. Respondents from the Asia-Pacific region relying on instilling philanthropic values in their children and a sense of moral responsibility (70%) as driving forces, while those in the United States reported creating meaningful roles (41%) and opportunities to transfer knowledge and experience (38%) as primary motivation.
Education and health beat out climate change for funds The rich give to education more than anything else. According to the survey, education-related causes made up 29% of philanthropic dollars spent over the past 12 months. This was followed by health (14%) and the arts, culture and sports (10%). The study also found the ultra-wealthy weren’t big tree-huggers, as environmental causes received a mere 8% of the giving portfolios surveyed.
Reasons for giving
Why do billionaires give? The majority of respondents globally reported a desire to give back to society (75%). This was followed by a desire to influence social change (55%), put values into action (50%) and address social inequality (47%). Across regions, Europeans were least likely to cite leaving a legacy as a primary motivation, while Americans were the least likely to cite addressing social inequality. And where do billionaires give? Those from the North America and Asia-Pacific regions tend to prioritise giving closer to home, while European donors—who tend to favor more global causes—are twice as likely to give outside their region.
