Charity became a standard for the super-rich - December 06, 2019
Donating to charitable causes is becoming more and more important to the rich, according to a new study. The ultra-wealthy gave a total of $153 billion to charity. Almost half of that amount was donated by North Americans, making them the most giving ever. There are other interesting facts in the study.
Last year the super-rich donated $153 billion around the world, while supporting charitable and sustainable causes is becoming more and more important to the wealthy, at least according to a new study by Wealth-X.
Ultra-rich around the world
The paper studied the philanthropical habits of Ultra High Net Worth (UHNW) individuals, who have at least $30 million and donated $50,000 or more in the last five years. It’s important to note that the paper focused on individual donations, so any charity made by companies or organizations connected to the rich were excluded.
From the study, it also turned out that the most UHNW individuals are from the US, but Asia became a close second by now. This is no surprise, especially since the number of wealthy people in China is growing rather fast (see: Countries with the richest citizens).
The US leads in charity
Although the number of rich individuals in Asia and Europe is close to the US’s number, the North American country leads by far in how charitable they are. They alone donated $75 billion, which account for 49% of all UHNW donations of the world. It’s also interesting to see that 20-30% of all American charity donations came from the ultra-rich.
Europeans are coming as a not-so-close second in this manner, with $48.2 billion in donations. Although China is the second most wealthy country according to this study, they only donated $18.8 billion, which represent 12.3% of all global wealthy charity.
Education is the most important
According to the Wealth-X study, education was the cause that the UHNW individuals supported the most in the last years. Social services, healthcare and medical research and arts were the other top causes that got the most support.
It’s also interesting to see that there’s a generational difference in how the ultra-rich donate. The younger they are, the more engaged they become with their causes. As Wealth-X put it: “This generation – aged under 45 – tends to be particularly passionate about one or two key causes”, and they also practically involved in them.
Disclaimer: This analysis is for general information and is not a recommendation to sell or buy any instrument. Since every investment holds some risk, our main business policy is based on diversification to minimize threats and maximize profits. Innovative Securities’ Profit Max has a diversified portfolio, which contains liquid instruments. This way, our clients can maintain liquidity, while achieving their personal investment goals on the long term.