Insights into Ultra-Wealthy Philanthropy: Trends and Transformations

A recent report on philanthropy among the ultra-wealthy sheds light on a growing trend of increased giving from individuals with a net worth of US$30 million or more. Published by Altrata, the “Ultra High Net Worth Philanthropy” report reveals that this cohort contributed a staggering US$190 billion to philanthropic causes in 2022, marking a notable 25% increase from the data recorded in 2018. Notably, the world’s 3,200 billionaires accounted for 8% of all individual giving.

The report highlights the significant expansion of the global ultra-wealthy population, which has grown by over 40% in the past decade, surpassing 400,000 individuals in 2023. Despite this growth, philanthropy appears to be concentrated among a smaller yet wealthier group, with their cumulative net worth reaching an impressive US$48 trillion.

The report underscores the scale and impact of philanthropy by the world’s richest individuals. It reflects a philanthropic community increasingly concerned with global and socioeconomic issues, as younger donors seek to make tangible changes independently rather than relying solely on established institutions and foundations.

As younger individuals become a significant segment of the world’s wealthiest, there is a growing desire to make visible and transformational impacts through philanthropy.

In 2022, philanthropic giving by individuals, institutions, and public foundations globally totaled approximately US$810 billion, with sports emerging as the most popular cause. Other notable areas of interest included education, arts and culture, and healthcare and medical research.

Despite women comprising only 11% of the ultra-wealthy population, they are more likely to contribute to philanthropic causes. Regionally, North America leads in individual giving, followed by Europe and Asia. Notably, American-based sources alone contributed US$84.5 billion in 2022, underscoring the concentration of wealth in the U.S.

Regarding vehicles for giving, the report reveals that almost 20% of ultra-wealthy individuals have a foundation, rising to nearly 30% among those worth more than US$100 million. Interestingly, charitable generosity remains unaffected by whether an individual’s wealth is inherited or self-made.

Overall, individual giving continues to surpass institutional giving, with the ultra-wealthy playing a prominent role, accounting for almost 38% of all global giving in 2022, up 2% since 2020.

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