Quick facts

• There is a group of high net worth individuals who are becoming significant donors and offer a new source of growth for the charity sector.1
• There were 360,000 millionaires in the UK in 2006 – up 8.1% on the previous year.2
• This group is more likely to prioritise philanthropic giving and they want to make a difference. They give away an average of 5% of their net assets (compared to 8% by wealthy US donors).
• Within this high wealth group there is a shift in source of wealth – they are more likely to have earned their wealth within their lifetime rather than relying on inherited money. (76% of the Sunday Times Rich List have created their own wealth, compared to only 25% when the list began in 1989.) In the US those with newly earned wealth donate twice as much to charity as those with inherited wealth.2
• The Top 30 donors on the Sunday Times Giving List in 2008 pledged £2.4bn, up from £1.2bn in 2007.
• Those who have earned their wealth are more likely to want to give away their money in their lifetime rather than in their will. They are also questioning how much to leave to their children.
• The ‘New Philanthropist’ has issued challenges to the sector about how funds are invested: they want professional help in how to plan their giving; they demand more feedback and financial accountability; and they want to see measurable results from their investment, as they would do in business.
• They also want to leverage their funding: they want to understand the root causes of issues and how they can be involved in solving problems in society; many want to get involved in more than just writing a cheque and are prepared to take risks or innovate to try new potential solutions.

Past Year Donations from Top 30 Givers in the Sunday Times Rich List £m

Source: Sunday Times Rich List

Sector trends

• These high net wealth individuals want to increase their giving to charities; they want to make a difference in their lifetime.
• 'New Philanthropists' are demanding a new level of professionalism from the sector. They want smarter giving: better understanding of impact, accountability and transparency.
• They are accepting that the government cannot provide all social care and that there is a role for the individual as a social investor.

Notes

1. High net worth individuals defined as holding more than $1m in assets.
2. World Wealth Report 2007, Capgemini/Merrill Lynch.
3. Sunday Times Rich List 2008