Wealthy becoming increasingly active in philanthropy in face of recession

Philanthropy is alive and well despite the recession according to a new report published this month by Barclays Wealth, which shows more than one in four of the high-net-worth (HNW) investors polled have increased their giving in the last 18 months.

The report entitled ‘Tomorrow’s Philanthropist’, reveals how much of a priority philanthropy has become for the wealthy in the UK and America, and despite the global downturn, three quarters have not decreased their contributions.

The study polled 500 HNW investors in the UK and US, and revealed that respondents are still highly committed to giving despite their assets and businesses being under strain. When asked where they would make cuts if the downturn continued, respondents identified luxury goods, eating out, holidays and travel, and staff as more expendable than charitable giving.

The report also reveals the emergence of the ‘Go Giver’, a new, ambitious and younger breed of wealthy philanthropists. This entrepreneurial donor has a stronger commitment to philanthropy than do older generations and feels more responsibility to support charities and causes. Evidence of this attitude is reflected amongst the high number of younger respondents who believe that giving will become more incumbent on the wealthy because governments are overburdened with debt.  

The next generation philanthropist is also increasingly interested in supporting global causes: 59% of 18-34 year olds stated more interest in global charitable causes, compared to less than a quarter (24%) of 35-44 year olds and a fifth of 44-45 year olds. 

Emma Turner, Head of Client Philanthropy at Barclays Wealth commented:  “These findings give us an insightful and encouraging snapshot of how we can expect people to engage in philanthropy in the future.  In the past, the typical approach was for people to give money and then step away. This new generation of philanthropists is a lot more ambitious and proactive and has perhaps been stimulated by adversity. The findings also show that our younger generations are more socially aware and tuned into global issues.”

Download the report on the Barclays website.