Ultra-high-net-worth individuals are giving more of their money away to philanthropic causes than ever before, a new report has found.
Those with a net worth of at least $30 million donated $190 billion to organisations across the non-profit, charity and education sectors in 2022, almost 25 per cent higher than in 2018, Altrata’s Ultra High Net Worth Philanthropy 2024 report identified. The world’s 3,200 billionaires accounted for eight per cent of all individual giving.
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Philanthropic giving by individuals, institutions and public foundations around the world totalled about $810 billion in 2022, the most recent year for which data is available, with almost half of all global UHNW donations in 2022 being by US-based UHNW individuals. UK UHNWs donated $14.6 billion in the same year.
The changing face of philanthropy
These findings come at a time of historic wealth generation and societal and environmental challenges that are shaping philanthropic giving, with an increasing emphasis on climate and social factors.
As philanthropy becomes more impact-driven, there has been a shift away from more traditional approaches to philanthropy and legacy creation, the report found. There is now less of a focus on donor’s interests and more on reactive ‘crisis response’, whether that’s providing urgent humanitarian support, targeted aid or rapid vaccine delivery, the report found.
Generational change is a growing driving force in the non-profit sector as a more digitally aware and activism-oriented generation invests more heavily in climate and technology causes.
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Impact investing and innovative investment tools are replacing networks and relationships favoured by the previous generation who are passing down their wealth. Millennials and Gen Z were also more likely to engage directly with the work being done and want to make a visible, transformational impact on society.
What causes are benefiting the most?
North America's generosity, (the region donated a total sum of $91billion) reflects its elevated wealth and its longstanding tradition of public giving. Europe’s ultra-wealthy gave a third of all UHNW donations in 2022, and the region experienced one of the strongest growth rates in (nominal) annual giving globally, with a 29 per cent rise between 2018 and 2022.
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Education is by far the most popular area for philanthropic donations from the global ultra-wealthy particularly in Asia, while elite US universities benefit from a tradition of alumni donating to their alma mater.
Arts, health care. and medical research also benefitted from donations as giving to conservation and environmental causes rose globally, notably among UHNW donors in North America and Europe.
