On March 4, 2009, Bank of America released the 2008 Bank of America Study of High Net-Worth Philanthropy, which offers new insights into the giving behaviors of America’s wealthiest donors. Conducted for Bank of America by The Center on Philanthropy at Indiana University, the 2008 research follows up and expands upon an initial landmark study published through this partnership in 2006 – the largest survey of wealthy Americans ever conducted on this topic – which has become a leading resource for the philanthropy industry for understanding these important donors.
The new 2008 study followed much of the same methodology as the initial 2006 study in order to identify key trends and to provide even deeper insights into the motivations and attitudes of wealthy donors. The study is the result of randomly surveying over 20,000 households in high net-worth neighborhoods across the country. It reflects the responses of nearly 700 respondents with household income greater than $200,000 and/or net-worth of at least $1,000,000 excluding primary residence.
In discussing the need for the new study, Cary Grace, Head of Bank of America Philanthropic Management, said, “Our clients are taking a more proactive approach to integrating philanthropy into their wealth management strategies. We are noticing that the turbulent economic environment has motivated these individuals to play a more active role in charitable decisions in terms of what they give, to whom and when. Our 2008 research breaks new ground and uniquely positions our philanthropic management experts across the country to help facilitate greater understanding and communication between donors and the non-profit institutions they support.”
For non-profit professionals, volunteers and charitable advisors, this study offers new information about what high net-worth donors: expect from non-profit organizations, hope to achieve through major gifts and the reasons why they stop giving to particular organizations. The 2008 report also reveals new information on the role that charitable and financial advisors play in high net-worth philanthropy, including the initiation of charitable advice and the utilization of charitable giving vehicles.
HIGHLIGHTS INCLUDE:
Locally and Personally Motivated. Wealthy philanthropists’ motivations for giving demonstrate a strong desire to “give back to the community” (81.2%) and to make an immediate difference (66.9%) in the world around them, according to the survey. Other leading motivations include these individuals’ social (70.4%) and political (58.5%) beliefs, as well as their loyalty to certain causes and organizations (70.7%) – many of whose missions seek to remedy an issue that may have affected the donor personally or someone close to them (57.5%).
Great expectations. In a continuing trend from the 2006 study, the 2008 research finds that wealthy donors have high expectations of charitable organizations, ranking the following factors among those most important when determining which to support:
- Sound business practices (93%)
- Spend appropriate amount on overhead (88.3%)
- Acknowledgement of contributions (including receipts) (83.7%)
- Protection of personal information (82.7%)
- Full financial disclosure (77.7%)
Why Did My Wealthy Donors Stop Donating? In an environment where non-profits are competing for a shrinking pool of gifts, it's critical to recognize the factors that can cause them to stop giving, and to develop strategies for stemming the outflow. In 2007, more than 40% of survey respondents indicated that they stopped supporting one or more charitable organizations. The top three reasons why donors reported they stopped giving to a particular charity include: no longer feeling connected to the organization (57.7%), deciding to support other causes (51.3%), and feeling they were being solicited too often (42.3%).
Raising Philanthropic Children. According to the survey, setting an example for children or other young people is an important motivator for donors (45.6%), with more and more parents involving their young and adult-age children in decisions about grant-making (40.8%) and the charitable organizations they choose to support (53.2%). In fact, the vast majority (95.9%) of the next generation of philanthropists learn about philanthropy and the value of giving from their parents, with more than 60% of wealthy donors actively educating their children about philanthropy.
Volunteerism. Volunteering and giving remain part of the philanthropic efforts of wealthy individuals. High net-worth individuals volunteered an average of 241 hours in 2007. Among high net-worth volunteers, more than 43% volunteered at least 100 hours per year, compared to 31% who gave fewer than 100 hours of their time in 2007. Those who volunteered between 1 – 50 hours in 2007 gave, on average, $45,318; those who volunteered more than 200 hours gave $132,315.
Bank of America, one of the nation’s largest corporate donors and provider of a full array of charitable services to individuals, families and non-profit institutions, sponsored the study.
CLICK HERE to download the complete 2008 study.
Related News Release
Press Release
Nov 24, 2008 – Bank of America Announces Initial Findings of 2008 Study of High Net-Worth Philanthropy
About Bank of America Philanthropic Management:
Bank of America Philanthropic Management delivers expertise and comprehensive investment and advisory services that help individuals, families and institutional clients build and sustain their philanthropic missions. Bank of America serves as grant-making agent, trustee or co-trustee for more than 2,000 private foundations, and advises more than 9,000 clients nationwide who entrust the company with over $20 billion in assets, as of December 31, 2008.
Executive Biographies
• Cary Grace, Head of Bank of America Philanthropic Management
• Claire Costello, National Practice Executive, Bank of America Philanthropic Management
For the Media
For more information about this study, please contact Matt Card, Bank of America, 1.617.434.1388
matthew.card@bankofamerica.com
Additional Information
Portraits of Donors
2006 Bank of America High Net-Worth Philanthropy Study
Bank of America, N.A., Member FDIC.
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