The number of philanthropists is increasing, with many of them funding everything from ocean exploration to free college tuition. A report released in 2020 by the Rockefeller Philanthropy Advisors revealed that the wealthiest families on the planet give away more than ever before. The report took data from over 200 wealthy families that often donate to charity in over 28 countries, and it found that in 2019 alone those families donated a total of over $2.4 billion. But how and why do these wealthy families give?
They Donate As Soon As Possible
The world’s super-rich are putting their money to work faster nowadays. According to the survey conducted by Rockefeller, over a third of families are planning on increasing their giving pace. They said they’re mainly focused on seeing results in their lifetime, and they’re also transferring assets to various causes with greater urgency.
Traditionally, families have not set a deadline for their charitable giving, according to the CEO of Campden Wealth, who co-authored the report. They’re now adopting a time-limited strategy, which involves giving away more quickly. A separate report by Rockefeller Philanthropy also compared the different results achieved through time-limited strategies vs. perpetual time-horizon strategies.
They Involve Their Kids As Early As Possible
Almost all of the respondents said they try to get the next generation involved in shaping the family’s giving. The majority of them cited the importance of having a sense of moral responsibility as their top strategy for engaging the next generation.
In the Asia-Pacific region, parents cited the importance of having a sense of responsibility as a driving force for their children’s involvement in philanthropy. On the other hand, those in the US said creating meaningful roles and opportunities for instilling knowledge and experience for their children were their primary motivation.
Education and Health Are Popular Causes
The rich give more to education than to any other cause. According to a survey conducted by Rockefeller, education was the most popular cause among the super-rich. It was followed by health and the arts, culture, and sports. The study also revealed that the ultra-wealthy aren’t big on donating to climate change, with only 8% of the giving portfolios surveyed consisting of environmental causes.