6 things to know about high net worth individuals
March 10, 2015 The NonProfit Times
People with a lot of money can be a great source of support for nonprofit causes. That does not mean, however, that they can be taken for granted, either as a never-ending fountain of cash or as people who know all there is to know about charitable giving.
During the 2014 International Fundraising Congress (IFC), consultant Richard Radcliffe said that, although High Net Worth Individuals (HNWI) have a lot of net worth, they could also be difficult to secure as legacy donors. This is because:
- They are really, really ignorant of the world of legacies;
- They do not know the definitions of the different types of legacies because they have advisers;
- They are the only donor segment that is interested in tax benefits — which are not universal. Many countries do not offer tax advantages to people leaving legacies;
- They are aware of the importance of a will and will have lots of advisers telling them to have one. And the will is very private;
- They tend to do a pre-retirement will (a planning-for-the-future will) in their late 50s; and,
- Radcliffe also emphasized that there is light at the end of the tunnel, because the ease and size of legacies can trigger initial interest, even with wealthy people.