The world’s richest people give away more money than most average workers can ever dream of earning in their lifetime, according to new research.
Profiling wealthy philanthropists, the report reveals these rich do-gooders hand out an average $25 million, are aged around 64 years old and have an average net worth of $240 million.
The study, by financial marketing firm Wealth-X, reveals wealthy philanthropists are switching their attention away from gifting to financing self-sustaining projects and entrepreneurs.
Facts and figures
Some of the report revelations include:
- Educational gifts account for 40% of donations by the wealthy – more than three times that given to health causes
- Women make larger gits than men – often adding up to 26% more
- The world’s wealthiest individuals make up just 0.003% of the global population, but they hold 13% of global wealth
- Seven out of 10 philanthropists are self-made rather than inheriting their fortunes
- US households gift an average $3000 a year to charity, while wealthy donors with fortunes of between $30 million and $50 million give away $60,000 a year
- Billionaires give the most – around $108 million each
- Wealthy philanthropists are expected to gift $86 billion during the next 10 years
The report discloses a shift in gifting by the rich away from straight donations to financing job creation.
“The wealthy are increasingly moving towards gifting money to help the less well-off with long-term financial solutions rather than quick fixes,” said Mykolas Rambus, the Wealth-X chief executive.
Self-made entrepreneurs
“The focus is on providing the chance for the less well-off to act as entrepreneurs to secure their financial futures and encouraging them to harness good business practises to maximise their returns.”
The philanthropy study also found that two-thirds of entrepreneurs go on to become major donors.
A case study illustrates how the wealthy are striving to make life easier for those stricken by poverty.
Donations to humanitarian causes in strife-torn parts of the Middle East are benefitting from millions of dollars of personal donations.
The Amal Project is providing funding for thousands of Syrian children living in a huge refugee in Jordan better protection by buying caravans as havens of peace away from the troubles of their homeland.
The caravans are filled with toys, games and creative materials to allow the children to play out of harm’s way. Cash also goes towards paying teachers, doctors and nurses to run the caravans.
