UK major donors

Quick facts

• There is a group of high net worth individuals1—the ‘new philanthropists’—who are becoming significant donors, offering a new source of growth for the charity sector.
• Within these major donors there is a shift in source of wealth – 'new philanthropists' are more likely to have earned their wealth within their lifetime rather than relying on inherited money. (76% of the Sunday Times Rich List have created their own wealth, compared to only 25% when the list began in 1989.2)
• Over half of 500 high net worth donors interviewed in the UK and the States report feeling a stronger duty to give as governments are overburdened with debt. This view rises to almost three-quarters amongst younger philanthropists.3
• The ‘new philanthropist’ has issued challenges to the sector about how funds are invested: they want professional help in how to plan their giving; they demand more feedback and financial accountability; and they want to see measurable results from their investment, as they would do in business.

Past Year Donations from Top 30 Givers in the Sunday Times Rich List £m

Source: Sunday Times Rich List

Sector trends

• These high net wealth individuals want to increase their giving to charities; they want to make a difference in their lifetime.
• 'New Philanthropists' are demanding a new level of professionalism from the third sector. They want smarter giving: better understanding of impact, accountability and transparency.
• They are accepting that the government cannot provide all social care and that there is a role for the individual as a social investor.

Notes

1. High net worth individuals defined as holding more than $1m in assets.
2. World Wealth Report 2007, Capgemini/Merrill Lynch.
3. Sunday Times Rich List 2008

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