A typical super-rich person has an average networth of $ 240 million and donates $ 25 million in his or her lifetime, says a report.
“The typical ultra-wealthy philanthropist donates $ 25 million over the course of his or her lifetime, is 64 years old, has an average net worth of $ 240 million, and an average liquidity of $ 46 million,” according to Wealth-X and Arton Capital Philanthropy Report 2014.
Philanthropy has evolved and expanded, it said, adding that not only are the ultra affluent donating money to various institutions, they are also increasingly using their specific expertise to improve the lives of others.
|NOT ONLY FLAUNTING…|
Source: Wealth-X and Arton Capital Philanthropy Report 2014
“Globally, we are witnessing an evolution of philanthropy as it expands from ‘traditional’ philanthropy, involving financial contributions and donations, to cutting-edge approaches such as venture philanthropy, micro finance, impact investing and job creation,” Wealth-X CEO Mykolas Rambus said.
The major giving index has risen in the past few years, reaching a level of 220 in 2013 – making it the strongest year for UHNW giving since the 1997-8 global financial crisis, and only 12 points below the all-time high of 232 in 2006.
“Billionaires give the most to charity. On average, members of this top-tier wealth segment have donated $ 108 million in their lifetime,” the report said, adding that philanthropic bequests are expected to reach $ 86 billion in the next 10 years.
The United States is a particularly important centre of major giving. UHNW philanthropists in the US are most numerous, most generous and give the most frequently.
In terms of generosity (in terms of total amount given during the 2004-2013 period), Indian UHNW philanthropists were ranked second after United States globally.
Other most ‘generous’ countries in the world include United Kingdom, China and Canada.
According to the report only 2 per cent of all UHNW philanthropists are under 40 years old, while 12.6 per cent are over 80, suggesting that traditional philanthropy is particularly relevant for UHNW individuals that have passed the wealth accumulation stage.
The report further noted that major philanthropic donations are made to educational causes, which account for 40 per cent of all UHNW donations, three times more than the amount given to health causes.
Interestingly, the global UHNW population, which comprises 0.003 per cent of the world’s population, holds 13 per cent of the world’s total wealth.
Research has also shown that, in the last 30 years, the Gini coefficient — an index that measures inequality in income distribution — in both developed and developing countries has been steadily rising.