What Type of Ultra High Net Worth Individuals Give to Philanthropic Causes?
Wealth-X recently released their report, Ultra High Net Worth Philanthropy 2022, breaking down the characteristics of ultra-high net worth individuals (UHNWI) who donate within the philanthropic sector. The report is based on their Philanthropic Giving Model, allowing them to not only disseminate the information within their massive database but project potential future contributions.
You’ll find the essential details from the report below, including their region of origin, attributes, and donation trends. This information is vital as non-profits, educational entities, and foundations need to target a specific subset of UHNWI when searching for substantial donations.
What regions in the world have the most philanthropic donations from high net worth individuals?
Individuals with wealth over $30m comprised 36% of all funds given in 2020, averaging $590,000 per individual and totaling $175bn - a substantial rise in the last decade. As the affluent have amassed more wealth each year, donations have seen enormous growth, proving a direct correlation.
How many Ultra High Net Worth individuals are there in North America?
In North America, there are about 139,400 UHNWI. This region was the leader among philanthropic giving, comprising of over 50%, or $91 billion all together - of contributions in 2020. Europe, with nearly 89,000 UHNWI donated $51.7 billion, with Asia third at $21.5 billion, even though they encompassed 96,770 UHNWI. Other notable regions include the Middle East, Latin America and the Caribbean, the Pacific, and Africa.
The Top Three Regions: A Breakdown of Donor Attributes
North America has long focused on philanthropic endeavors, with 1.8 million charitable entities in that region, due to appealing tax incentives and a robust economy. In contrast, Asia has only recently begun changing course due to cultural expectations. Both regions have seen the most growth in wealth, with Europe trailing but still going strong.
What is the gender breakdown for donating to philanthropic causes?
The benefactors from the leading three countries trend heavily toward self-made men, though generational wealth was a considerable component in donors from Europe.
To illustrate, 88.7% of donors from North America were male, 74% of which were self-made. European donors were 88.8% male, with over 30% donating with at least partial generational wealth funds. Asia, in contrast, saw 86.4% male donors, with 73.4% self-made funds.
Age Attributes
Age also played a significant factor. The average maturity of donors in the top three regions is as follows:
For North America, less than 7% were under 50, with the majority of donors - 51.2% - falling in the range of 50-70 years of age. The most prevalent age was 68.
For Asia, 18.2% were under 50, with the majority - 60.7% - ranging 50-70 years of age. The average age of benefactors was 60.
For Europe, less than 13% were under 50, with a solid 53.8% in the 50-70 year age range. The average age of donors was 63.
It must be noted that Asia’s wealthy individuals under 50 number three times that of North America’s. At the same time, North America holds the largest share of philanthropists over 70 at 40%, with Asia at just 4%. According to Wealth-X, it’s highly likely multigenerational wealth will bolster donated funds further over the next decade.
Income Sources of People Who Give Most to Philanthropic Causes
The primary industries for all three leading regions tend towards banking and finance at 21%-31%, with non-profit coming in second in Europe and North America at 9.1% and 10.1% respectively. Asia’s succeeding sector is technology at 10.4%, with no significance on non-profit or social organizations.
Additional industries for North America included business and consumer services at 9.6%, real estate at 9.1%, and technology at 4.7%. For Europe, business and consumer services comprised 8.6%, industrial conglomerates at 5.4%, and hospitality and entertainment at 4.8%. Asia encompassed industrial conglomerates at 10%, real estate at 9%, and manufacturing at 7.9%.
The Top Three Regions: Donation Trends
The most substantial donations in all three regions were given to educational purposes. A breakdown of donation trends shows that 62% of contributions from Asia fall in this category, followed closely by 55.8% in North America and 47.3% in Europe. Secondary and tertiary trends differ, with Asia focusing on health and medical research and social services, North America directing attention to arts and culture followed closely by social services, and Europe centralizing donations around arts and culture and healthcare and medical research. Each region also donated to the environment, conservation and animal welfare, child and youth development, and public affairs.
In Conclusion
Charitable organizations and foundations should seek donors within the top three regions that are male, over 60 years of age, and have a background in finance or banking.
For more information, please review the Wealth-X report for additional breakdowns, including UHNWI with foundations versus those classified as major philanthropists for best value-add propositions.
We focus on Ultra High Net worth directories and lists, UHNW lead generation, UHNW marketing, UHNW branding, UHNW prospecting.
Discover how Select Advisors Institute helps luxury brands connect with high-net-worth individuals (HNWIs) through personalized experiences, exclusivity, and value-driven storytelling. Our tailored marketing strategies are designed to resonate with affluent clients’ unique values, building engagement and loyalty. Explore why we’re the trusted choice for luxury brand marketing to HNWIs.