Johannesburg – After peaking at a high of 104 on the Major Giving Index in 2015, analysts at Arton Capital expect the world's ultra high net worth individuals (UHNWI) to continue donating some of their wealth to good causes, despite an eventful geopolitical environment in 2016.
According to a report by Arton Capital, which looks at the trends in philanthropy, Brexit and the outcome of the US elections seemed to suggest that people in developed countries are turning away from the idea of globalisation.
However, their research suggests that these events will not deter the world's wealthy to continue giving. Instead, globalisation is making acts of philanthropy larger and more efficient.
Research shows on average UNHWI donate close to $30m in their lifetimes. UHNWI are those that have an average net worth close to $300m, according to the report.
A gift of at least $1m was made by 18 500 individuals, in the past year.
These major donors account for almost 9% of the global UHNWI.
“Major donors typically donate about half of their cash holdings to charity over a lifetime,” stated the report.
More than half (57%) of the world’s major donors are based in the Americas. These are 10 500 people.
There are fewer (3 500) philanthropists in Europe and the Middle East and Africa. This is because welfare sates are more prevalent in these regions.
These donors are less than a fifth of the global total, according to the report.
The Asia-Pacific region has a total of 4500 or 24% of the world’s major donors.
Other key findings show the majority (69%) of donors are self-made. Those that inherited their wealth make up 15% of total donors.
Only 10% of donors are women. Female donors give more over the course of their lives, measured by a proportion of their net wealth, stated the report.
The average age of these major donors is 69. This is because people over the age of 50 hold the majority (85%) of wealth. The total wealth of UHNWI comes to $25.4tr.
Those under the age of 30 hold less (0.3%) of the total wealth of UHNWI.
Of the causes donors give to, education tops the list receiving 47% of donations, followed by health with 20% of donations.Read Fin24's top stories trending on Twitter: Fin24’s top stories