Although many high-net-worth donors share a desire to volunteer and to include children in their philanthropic planning, there are many differences among them, according to a report released today by Bank of America.
In what could be the largest study to date of the philanthropic motivations and behavior of high-net-worth individuals conducted by North Carolina-based bank in partnership with Indiana University’s Center on Philanthropy, the report identifies 12 donor types and how they go about giving away their money.
The research digs deeper into their 2006 study of a random sample of 1,150 individuals with an annual income of $200,000 or net assts of $1 million or more.
Most surveyed expressed a concern about administrative expenses.
“There is a huge interest across all segments for the need to understand the effectiveness and impact of their donations,” said Cary Grace, managing director for Bank of America Corporation.
The research pointed to two of the most generous profile types likely to lead the pack and drive trends in philanthropy in the coming years.
They are: the “Very Wealthy,” households with a net worth of at least $50 million, and the “Entrepreneur,” households where at least 50% of wealth comes from entrepreneurial assets.
The Very Wealthy gave 10 times as much in 2005 to charity on average than those with a net worth of between $5 and $50 million.
They were more likely than others to seek external advice about giving and 50% turned to accountants.
The Entrepreneurs tend to give 25% more on average than the other groups.
They were less likely to seek external advice and were more likely to make donations through their business.
The bank’s report, “Portraits of Donors” is available at
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For the full report, see the Dec. 10 issue of InvestmentNews.
