Bank of America has drilled down into the conduct of affluent philanthropists to find out what they care about, the role of women in decisions, and the sort of structures employed.

A study of 1,626 high net worth US citizens found they did not sustain philanthropic giving at the level seen in the first year of the pandemic but it remains robust. Women also influence a high proportion of philanthropic gifts, the survey, by Bank of America, found. 

The 2023 Bank of America Study of Philanthropy showed that households gave an average of $34,917 to charity in 2022, which is more than in 2017 ($29,269), but less than the $43,195 they gave in 2020 when giving levels peaked in response to the pandemic and an increased awareness of racial and social justice issues.

The vast majority (85 per cent) of household charitable giving decisions are made or influenced by women. Also, the same percentage of affluent women say they sometimes or always consciously align their purchasing decisions with their values. Furthermore, the Millennials and Gen Z’s philanthropic influence grows with a focus on climate change.

“This year’s study shows the generosity of the American people and the strong influence of women and Next Gen philanthropists who are using their wealth to promote positive change in the world,” Katy Knox, president of Bank of America Private Bank, said. 

Banks, law firms and other organizations today provide specialist advice to high net worth individuals about philanthropy, knowing that this is a subject that clients are often passionate about. There are even specialist philanthropy advisors who help clients work out the most effective ways to give money and optimize the tax system. (See here for a comment from this news service about the changing world of philanthropy advisors.)

“Observers have questioned how economic shocks and uncertainty will affect philanthropy in America, even among affluent donors,” Una Osili, PhD, associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy, said. “This ongoing body of research serves as an important barometer of giving trends and provides insights into the extent to which giving behaviors may be returning to their pre-pandemic trends, or whether we are on a new path,” Osili added.

The study found the percentage of affluent households giving to charity remained high, although 3 per cent fewer households gave last year than in 2020. Of those who did not give to charity in 2022, 44 per cent said it was because of the need to take care of family, up from 27 per cent who said this five years ago, and a reflection of the challenges posed by 2022’s economic and market volatility.

The report also shed light on the structures that philanthropists use – an issue that sometimes causes controversy when tax deductions for charity are involved. Almost a quarter (22 per cent) of affluent households overall use a structured giving vehicle, such as a donor-advised fund, family foundation or charitable remainder trust, to meet their philanthropic goals. Of those with a net worth greater than $5 million, 54 per cent have a giving vehicle or plan to establish one within the next three years. (This news service has explored the issues around DAFs and foundations here and here.)

(Editor’s note: Later in 2023 this news service will examine trends in philanthropy in greater detail in the approach of the annual “Giving Season”. Please email tom.burroughes@wealthbriefing.com if you wish to get in touch.)