While they are still in the minority, a growing number of wealthy families are limiting their giving to shorter time spans, rather than giving in perpetuity, in part to see the results of their giving in their lifetimes, according to two new reports released Friday by Rockefeller Philanthropy Advisors and Campden Wealth.
According to the studies, “Global Trends and Strategic Time Horizons in Family Philanthropy 2020,” and “Strategic Time Horizons: A Global Snapshot of Foundation Approaches,” philanthropists worldwide are also trying to engage the next generation in their families’ giving. The survey on which the studies are based included 201 families of significant wealth who are known philanthropists, said Rockefeller Philanthropy Advisors. Half of the respondents were from the United States; the rest were spread across the world.
"As the global economy grows, so does the number of wealthy individuals making philanthropy a key part of their lives,” said Melissa A. Berman, the CEO of Rockefeller Philanthropy Advisors, in a statement. “They're seeking new approaches and instruments to address acute social and environmental issues effectively."
The survey shows philanthropists want a “deeper personal engagement, more focused giving and a commitment to impact that can be seen and assessed,” she said. “They are thinking seriously about the time horizon that makes the most sense for the goals, motivations and visions of their own philanthropy."
According to the survey, 32% of the families are choosing to give to causes for a limited time, a trend that has been growing since 2000, according to Rockefeller Philanthropy Advisors. With a time-limited approach, they concentrate their donations over shorter time periods. Thirty percent are doing this in order to see the impact of their giving during their lifetimes, 23% are doing it because they want to narrow the focus of their philanthropy, and 17% are doing it because they want to transfer more of their wealth to good causes sooner rather than later.
At the same time, 62% of families are giving to causes in perpetuity, rather than for a limited time, in order to provide sustained, long-term support to persistent challenges, to strengthen their families’ purpose and values and to have a greater impact on beneficiaries over multiple generations, the report said.
Wealthy families want to engage multiple generations in giving. Eighty-one percent of families said the next generation is engaged in their family’s philanthropy in some way, and 65% said they involve younger givers by instilling philanthropic values and a sense of moral responsibility in the next generation.
“We are in the early stages of a significant transition in which vast sums of wealth are changing hands between generations,” said Rebecca Gooch, director of research at Campden Wealth, in a statement. “The emerging generation is acutely aware of the large-scale global challenges it will face, such as climate change. As the world’s wealthiest are playing an increasingly important role in tackling today’s social and environmental problems, the entrance of this new generation is likely to impact critical global initiatives.”
Rockefeller Philanthropy Advisors is a nonprofit organization that advises on and manages more than $200 million in annual giving by individuals, families, corporations and foundations. Campden Wealth is a support organization for wealthy philanthropists.