Rockefeller Philanthropy Advisors (RPA) and Campden Wealth today published ‘Global Trends and Strategic Time Horizons in Family Philanthropy 2020,’ a report based on a survey of 201 families of significant wealth who are engaged in philanthropic giving.
The responses reveal why these families give, the types of vehicles through which they donate, what shapes their philanthropic time horizon choices, popular causes, and engagement of the next generation.
According to the report, education is the top cause families give to globally, constituting 29 per cent of the average philanthropic portfolio, followed by health at 14 per cent), and the arts, culture and sports at 10 per cent. Just eight per cent of giving goes towards the environment global concern for climate change.
‘As the global economy grows, so does the number of wealthy individuals making philanthropy a key part of their lives. They’re seeking new approaches and instruments to address acute social and environmental issues effectively,’ said Rockefeller Philanthropy Advisors CEO Melissa A. Berman. ‘This global survey affirms trends that we’ve identified in our work: the desire for deeper personal engagement, more focused giving, and a commitment to impact that can be seen and assessed. Families around the world are actively involved in donor collaboratives, impact investing, media campaigns and public-private partnerships. And as donors become more sophisticated in giving and investing, they’re thinking seriously about the time horizon that makes the most sense for the goals, motivations and visions of their own philanthropy.’
This report reveals that nearly one-third of families (32 per cent) are choosing to adopt a time-limited approach to philanthropy, concentrating their donations over shorter time periods. The ‘next generation’ has a significant influence in family philanthropic endeavors across all regions surveyed. Overwhelmingly, families (81 per cent) report the next generation of wealth holders is engaged in their family’s philanthropy in some way.
‘We are in the early stages of a significant transition in which vast sums of wealth are changing hands between generations. The emerging generation is acutely aware of the largescale global challenges it will face, such as climate change,’ said Dr. Rebecca Gooch, Director of Research at Campden Wealth. As the world’s wealthiest are playing an increasingly important role in tackling today’s social and environmental problems, the entrance of this new generation is likely to impact critical global initiatives. Beyond NextGens’ strong influence in the sustainable investment space, they are also set to significantly affect philanthropic giving. This can result in more meaningful funding for certain important causes, such as the environment.’
The survey respondents represent 28 countries and $2.4 billion in annual giving. With half of the respondents based in the United States, 25 per cent in Europe, and 20 per cent in the Asia-Pacific region, the survey also provides insight on regional nuances to philanthropy.
Read the full report here.