Ultra rich unhappy with their giving JP Morgan Bank report reveals

By: 

Cheryl Chapman

Managing Editor, Philanthropy UK

 A new survey into the charitable habits of ultra high net worth individuals (UHNWI) by J.P. Morgan Private Bank, shows only 7% are happy with their giving habits.

Other revealing findings show over three quarters of respondents give regularly charity, with a further fifth (21%) saying they give irregularly, and an overwhelming 50% saying they give more than 5% of their total net wealth to charitable causes.

The survey was conducted amongst 200 J.P. Morgan Private Bank’s ultra high net worth clients, with 78 of 200 recipients responding, representing more than £6bn in estimated wealth.

In answer to the  question 'what would encourage them to give more', allmost half said finding a cause about which they felt passionate; whilst 44% said they would give more if their wealth increased; 30% replied that they would need better knowledge of how their donations were spent.

Rebecca Eastmond, head of EMEA Philanthropy at J.P. Morgan Private Bank, commenting on the results says: “The survey highlights a recurring theme that we see with many of our clients that the most successful philanthropists find a cause that they can feel passionate about and which aligns with the skills and resources that they can bring to the table and which is in an area where help is sorely needed.” She continued, “The best giving does not begin or end with signing a cheque.”

Looking deeper at what motivates the rich to give to charitable causes, the primary reason given by just over half of respondents is that they care deeply about the charity they support and in many cases have a personal connection.  This is highlighted in the in-depth case studies of Richard Ross, Chairman of the Rosetrees Trust or Herta Von Stiegel, founder of the Prince’s Trust Women’s Leadership Group, which the bank has published alongside the report.

The next most popular reason given by nearly a third (32%) is the effectiveness of the charitable organisation. They said they want to give to a charity that really can make a difference.  Other reasons given were wanting to give something back to the community (29%), being asked by a friend or business associate (23%), being able to involve family members (18%) and making a visible difference (16%).

Olivier de Givenchy, head of J. P. Morgan Private Bank in the UK, says of the findings: “It is great to see that people give to causes that mean a great deal to them on a personal level. When practising philanthropy this is an important driver as it often means not just a financial but an emotional commitment, this presents a boost to charitable organisations who do their very best to give something special to society and help those who really need it.”

The survey also asked what would encourage their clients to give more and 30% cited better tax incentives; 17% replied if they had more time to focus on their giving; 14% said that more knowledge of a charity’s impact and an equal number said they would give more if they found a common interest to enable them to give together as a family. 

Rebecca Eastmond comments further on effective giving: “Anyone who wants to use the money, energy and time they have set aside for philanthropy effectively, will want to make those resources work as hard as possible.  We would always advise that you agree clear benchmarks that will help you and your delivery partner measure what success will look like. Include both quantitative and qualitative measure and ensure that the quantitative and qualitative measures don’t simply measure activity – for example, the number of vaccines administered – but also measure success – for example, the percentage reduction in illnesses contracted. But remember, evaluation is a tool to help you refine and adapt your grant making. It’s not an end in itself.”