How The Wealthy Donate And Why That Matters

A recent Bank of America Private Bank study reveals that 91% of affluent Americans engage in philanthropy, with their charitable approaches varying by age and gender.

Key Findings:

• Generational Differences: Younger donors (ages 21–43) are more inclined to participate in direct action, such as volunteering, fundraising, mentorship, and board involvement. In contrast, older donors (ages 44 and above) predominantly contribute through direct financial donations. For example:

  • Direct giving. 90% of older donors vs 49% of younger donors.
  • Volunteering. 41% of older donors vs 43% of younger donors.
  • Fundraising. 14% of older donors vs 29% of younger donors.
  • Mentorship. 6% of older donors vs 25% of younger donors.
  • Sitting on the board. 10% of older donors vs 14% of younger donors.
 

• Gender Influence: Women in affluent households significantly influence charitable decisions, with 85% of giving decisions being attributed to them.

• Giving Priorities: The study highlights that philanthropic motivations, priorities, and strategies are shaped by generational and gender experiences, affecting cause selection and giving methods.

The survey also noted that 10% of all respondents use donor-advised funds, with 95% believing that they support long-term giving and 91% doing so because they simplify the giving process.

Understanding these trends can provide insights into the evolving landscape of charitable giving among affluent individuals.

Source: Newsbreak