Philanthropy: Barriers to Giving | Wealth Insights | Barclays
Residents of the United States, please read this important information before proceeding
Financial Security - The starting point in uncovering some of the inhibitors towards philanthropy is to understand the main reasons the wealthy donate. 50% of the wealthy are motivated to give to charity because they feel they can afford to do so. However, this is very subjective and many millionaires feel that they are unable to afford to give to charity and will not become major donors until they feel financially secure.
Internal Motivators - Giving to charity is an emotive matter, driven by a wide range of internal values and beliefs. To uncover what the most important of these are, the research analysed how the key motivators were related to the amount of money the wealthy donated each year.
Charities' Efficiency - Once the wealthy have decided on a general cause, it is efficiency and the amount spent on administration which are the two most important factors when selecting an individual charity (89% and 88% respectively).
The Role of the State - The role of government in philanthropy is controversial. On one hand, many wealthy individuals believe that the state has a responsibility to encourage charitable donations. When asked how, 52% said that the most effective way for the state to increase donations would be to increase tax breaks to offset charitable giving.
It's not the Economy, Stupid - One potential barrier to giving is often cited as the performance of the economy as a whole, especially as both the US and UK experienced recessions in 2008 and 2009. 23% of the wealthy decreased their donations in 2009, with 10% cutting back the amount they gave by over a quarter. As a result, 20% of the wealthy have given time, rather than money. This has been especially prevalent in the US, where one in four have increased their time spent with charities.