Twenty-three percent of millionaires donate to charities reactively as requests come in and only 9 percent plan their philanthropic giving ahead of time, the study says. Those with at least $5 million are more likely to plan their giving and more likely to rate their giving experience as highly effective, says UBS.
“What we found is that investors with over $5 million are more satisfied and effective givers, but not because of their ability to give a high dollar amount; rather, it’s because of the strategic planning they put into their philanthropic giving. Investors below $5 million would do well to replicate this planned approach to giving,” says Paula Polito, client strategy officer, UBS Wealth Management Americas.
UBS also found that baby boomers and the World War II generation tend to give more to traditional institutions, such as their alma maters and religious organizations, while Gen Xers and millennials gravitate toward causes focused on practical outcomes, such as fighting diseases and children’s programs.