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Wealthy Donors Are Adjusting Philanthropy Plans

More than one-third (35%) of donors with at least $5 million in assets under management (AUM) anticipate changing their giving strategy during the next two years. They probably will to give more (68%) and to a greater number of organizations (51%).

Their giving is driven by a belief in the cause/mission, as well as a sense of altruism. Nearly two-thirds (64%) agree that their giving strategy is a part of their overall wealth strategy.

These are some of the responses from a study completed by BNY Mellon Wealth Management. The firm partnered with Brown Yardley Research to conduct research focusing on high net worth investors to understand the behaviors, attitudes and experience toward charitable giving.

All respondents were screened to ensure they have a minimum of $5 million under professional management, are decision-makers involved in household financial decisions and are at least 18-years. The majority of the 200 respondents (160) reported assets of between $5 million and $24.9 million.

According to the data, most have a giving strategy (56%) and 22% said they would consider one. But, another 22% do not have a strategy and don’t want one. Affluent investors value both expert advice, as well as input from family. Many have worked with their wealth advisor (63%) and family members (44%) in developing their giving strategy.

Like giving by donors at every level, the gifts are personal. The top two motivations for giving by the respondents is “personal satisfaction” and “personal connections.” Nearly all investors claim to be at least somewhat engaged with the organizations and charities they support.

The COVID pandemic appears to have impacted giving. Some 42% of wealthy respondents report their giving strategy changed during the past two years and many began donating more. Lower AUM investors are likely to use donor advised funds for philanthropy while higher AUM investors tend to use a variety of vehicles.

Many consider both financial return and social/environmental good, with 41% engaging in sustainable investing. Higher AUM and younger investors are particularly likely to be engaged in sustainable investing.

To see the complete study, go to https://bit.ly/3MiOCeL

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