The 2018 U.S. Trust Study of High Net Worth Philanthropy, published today in partnership with the Indiana University Lilly Family School of Philanthropy, finds that wealthy Americans continue to be generous with their time and money, increasing the amount they gave on average to charitable causes and organizations in 2017, including giving in the wake of natural disasters. The biennial study shows that 90 percent of high net worth (HNW) households gave to charity last year, and 48 percent volunteered time to nonprofit organizations and causes.
A deeper analysis of the HNW donor population uncovers important differences in how women; millennials; lesbian, gay, bisexual, transgender and queer (LGBTQ); and racial and ethnic groups give and the causes and organizations they support. Women are at the forefront of philanthropic engagement, and millennials are an increasingly important cohort as they are the most diverse and soon to be largest generation in the country.1
“Wealthy donors continue to be generous with their money and time, increasing their support for a wide range of causes and organizations. At U.S. Trust, we work with both nonprofits and individuals to make the most of this generosity,” said Katy Knox, president of U.S. Trust. “This year’s study found that donors have increased confidence in nonprofits to solve societal and global issues.”
“It’s important to note that wealthy donors include people from diverse backgrounds and giving traditions. While the impact and contribution of women, racial and ethnic groups, and the LGBTQ community are gaining greater recognition and importance, these groups have long been an important part of philanthropy and the nonprofit community,” said Una Osili, Ph.D., professor of economics and philanthropic studies and associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy.
The 2018 study is the seventh in a research series that began in 2006. The report identifies eight themes that shaped wealthy donors’ giving in 2017. They include:
“Gifts from wealthy donors comprise an increasingly large share of all U.S. charitable giving, and they play a significant role in supporting the missions and impact of a wide range of causes and organizations,” said Amir Pasic, Ph.D., the Eugene R. Tempel Dean of the Indiana University Lilly Family School of Philanthropy. “This new study shares insights that help us better understand the ways in which these donors help nurture and sustain our society.”
“The giving patterns and preferences revealed by this year’s study point to an evolving philanthropic landscape driven by a younger and diverse group of donors who are reshaping the future of giving,” said Ann Limberg, head of Philanthropy and Family Office Solutions, U.S. Trust. “Nonprofit organizations, and the wealth advisors who serve them, will be rewarded for paying greater attention to the distinct interests and needs of all donors, both as individuals and through the values that motivate their charitable giving goals and expectations.”
Results of this study are based on a survey of 1,646 U.S. households with a net worth of $1 million or more (excluding the value of their primary home) and/or an annual household income of $200,000 or more. To view a detailed summary of key findings and to access the full report, visit www.ustrust.com/philanthropy.
The Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its academic, research and international programs and through The Fund Raising School, Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy and the Women’s Philanthropy Institute. For more information, visit https://philanthropy.iupui.edu/.
U.S. Trust, Bank of America Private Wealth Management is a leading private wealth management organization providing vast resources and customized solutions to help meet clients’ wealth structuring, investment management, banking and credit needs. Clients are served by teams of experienced advisors offering a range of financial services, including investment management, financial and succession planning, philanthropic and specialty asset management, family office services, custom credit solutions, financial administration and family trust stewardship.
U.S. Trust is part of the Global Wealth and Investment Management unit of Bank of America Corporation, N.A., which is a global leader in wealth management, private banking and retail brokerage. U.S. Trust employs more than 4,300 professionals and maintains 138 offices in 33 states.
As part of Bank of America, N.A., U.S. Trust can provide access to a broad range of banking solutions for individuals and businesses, and an extensive retail banking platform.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,400 retail financial centers, approximately 16,100 ATMs, and award-winning digital banking with more than 36 million active users, including nearly 26 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Global Wealth and Investment Management (GWIM) is a division of Bank of America Corporation (BofA Corp.). Merrill Lynch Wealth Management, Merrill Edge™, U.S. Trust and Bank of America Merrill Lynch are affiliated subdivisions within GWIM.
Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and other subsidiaries of BofA Corp. Merrill Edge, available through MLPF&S consists of Merrill Edge Advisory Center (investment guidance) or self-directed online investing. The Private Banking and Investment Group, a division of MLPF&S, offers a broad array of personalized wealth management products and services.
Institutional Investments and Philanthropic Solutions is part of U.S. Trust, Bank of America Private Wealth Management and U.S. Trust, Bank of America Corporation (U.S. Trust). U.S. Trust operates through Bank of America, N.A. and other subsidiaries of BofA Corp. Bank of America, N.A., Member FDIC. Trust and fiduciary services and other banking products are provided by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A. Brokerage services may be performed by wholly owned brokerage affiliates of BofA Corp., including MLPF&S.
Certain U.S. Trust associates are registered representatives with MLPF&S and may assist you with investment products and services provided through MLPF&S and other nonbank investment affiliates. MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of BofA Corp.
Bank of America Merrill Lynch is a marketing name for the Retirement Services business of BofA Corp.
The Private Banking and Investment Group is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the group’s private wealth advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill Lynch’s obligations will differ among these services. The banking, credit and trust services sold by the group’s private wealth advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.
Julia Ehrenfeld, Bank of America
1 Pew Research Center tabulations of U.S. Census Bureau population projections released December 2014 and 2016 population estimates, March 1, 2018 http://www.pewresearch.org/fact-tank/2018/03/01/millennials-overtake-baby-boomers/