Study Highlights Women's Philanthropy, Impact Investing Leadership

Tom Burroughes

9 November 2018

A recent study of wealthy US householders highlighted how women spearhead philanthropic giving and impact investing, and a deeper analysis of findings draws out how involved female engagement is now.

At the end of October this publication reported on the 2018 US Trust Study of High Net Worth Philanthropy, showing a rise in giving for 2017. The study was issued in conjunction with US Trust with Indiana University Lilly Family School of Philanthropy.

Ninety-three per cent of high net worth women reported giving to charity, 56 per cent volunteer, and 23 per cent serve on the board of a non-profit organization. One-quarter of high net worth women donors support causes or organizations aimed at benefitting women and girls. They said that their most important motivation for this giving is their belief that it is the most efficient way to solve societal problems.

The report said that significant differences come through in the percentage of households giving by charitable category, depending on donor gender, age, race or ethnicity and sexual orientation.

“While the impact and contribution of women, racial and ethnic groups and the LGBTQ community is gaining greater recognition and importance, these groups have long been an important part of philanthropy and the non-profit community,” Una Osili, PhD, Professor of economics and philanthropic studies and Associate Dean for Research and International Programs, Indiana University Lilly Family School of Philanthropy, said.

Women are more likely than men to support health care or medical research. Millennials are less likely to give to religious, combined charities, and basic needs than older groups, the study said. LGBTQ households are less likely to donate to religious organizations, health related, combined charities, and youth or family services.

In addition to reporting the incidence and amount of giving by charitable category, study participants also described their giving to causes or organizations related to their particular affinity group. Looking at the areas of greatest activity, in 2017 nearly three in 10 high net worth households gave to affinity organizations specifically focused on youth. One in five overall, and one in four wealthy women, gave to organizations with a focus on women and girls.

Among all high net worth households, a relatively small percentage supported racial or ethnic and LGBTQ affinity groups. However, among these groups, giving to these respective causes was “significant”, the report said. For example, half of wealthy African Americans gave to causes or organizations specifically focused on African American causes and 43 per cent of LGBTQ households gave to LGBTQ-focused organizations and causes. One-quarter of Hispanic/Latino donors gave to Hispanic or Latino affinity groups and 10 per cent of Asian Americans gave to Asian American affinity groups in 2017.

As previously reported, the study showed that average amounts given by HNW households rose by 15 per cent to $29,269 compared with two years ago, while the percentage of households who give remained high at 90 per cent, according to a recent study by US Trust in partnership with Indiana University Lilly Family School of Philanthropy. Results of this study are based on a survey of 1,646 US households with a net worth of $1 million or more and/or an annual household income of $200,000 or more.

Some 93 per cent of HNW women gave to charity last year and 56 per cent of them volunteered their efforts, with 6 per cent participating in the new and evolving field of impact investing. Another finding shedding light on the prominent role of women was that 23 per cent of women surveyed serve on the board of a non-profit organization. One-quarter of HNW women donors support causes or organizations aimed at benefitting women and girls, and said that their number one motivation for this giving is their belief that it is the most efficient way to solve societal problems.

The study throws light on the motivations among HNW individuals for giving, suggesting that broader social, cultural and even political trends, such as awareness of women’s rights, environmental impact and the need for more accountability in business and politics are driving change. For example, one finding showed that a quarter of HNW donors gave to disaster relief efforts, motivated by media coverage of the devastation and lack of confidence in government relief efforts.