New Age of Philanthropy Points to Increased Social Awareness, Barclays Wealth Research Shows

• Survey of 500 US , UK high net worth individuals announces new, global age of philanthropy
• US donors spend 3 times more time and 4 times the resources on charitable causes than UK counterparts
• In US, women donate almost twice as much of their wealth to charity as men
• Humanitarian, social causes key to today’s wealth givers

NEW YORK--(BUSINESS WIRE)--A report published today by Barclays Wealth, a leading global wealth manager, entitled “Tomorrow’s Philanthropist,” paints a picture of the way in which the changing attitudes of high net worth donors is altering the future of charitable giving. The report, authored by Ledbury Research for Barclays Wealth, polled 500 high net worth individuals in the US and the UK in May. The results represent the first time that the philanthropic attitudes of high net worth individuals in the US and the UK have been compared and contrasted.

“The fact that we’re seeing levels of giving maintained in such a challenging economic environment is a real statement of intent and underscores the importance of philanthropy.”

According to Barclays Wealth, “The New Age of Philanthropy” is characterized by a generation of increasingly charitably- inclined and socially- involved wealthy donors. Education and upbringing have played a vital role in shaping the values of this generation, whose characteristics include:

• A third of wealthy parents believe their children will have a heightened sense of social responsibility and be more charitably inclined than they are.
• Women have typically been involved with the administration and facilitation of charitable giving. However, findings show that women now donate more of their wealth to charity than men. In the US, high net worth women give 3.5% of their total net worth to charity each year, almost double the 1.8% given by men.

Wealthy individuals in the US donate more time (3 times as much) and money (4 times as much) to charity than their British counterparts. However, the emergence of the new generation of philanthropists in the UK indicates a shift toward a more American way of giving (value of the top 30 donations in the UK has increased nine-fold since 2003).

Philanthropy in a Downturn Economy

Wealthy investors in both the US and the UK have been hit by declining company valuations, stock markets and house prices, bringing about concerns that charitable donations would suffer. However, the Barclays Wealth research shows that this may not be the case:

• The wealthy consider philanthropy a key expense and would sooner give up comforts before cutting back on charitable giving
• High net worth individuals have cut back their donations by 2.2%, but research shows young donors to be “contrarian givers,” increasing donations by 3%-4% to help charities survive the downturn
• 77% of high net worth individuals surveyed in the US and the UK said that they would not decrease their level of giving in the current downturn

“According to the report’s findings, there is a remarkable resilience among wealthy givers,” noted Matt Brady, Head of Wealth Advisory at Barclays Wealth. “The fact that we’re seeing levels of giving maintained in such a challenging economic environment is a real statement of intent and underscores the importance of philanthropy.”

Impact Giving

While levels of giving remain stable, there appears to be a fundamental shift in the wealthy’s choice of charitable causes. In the past, the majority of wealthy individuals inherited their fortunes versus being self-made; today, this trend has reversed.

Self-made wealthy individuals are becoming increasingly active in their philanthropy, seeking to apply their business expertise, networking and fundraising skills to solve the social problems of the day and drive change. Forty-five percent of high level donors (i.e., donors that donate in excess of $10,000) prefer to give their money away during their lifetime, so they can witness its impact on society. The increased involvement of wealthy individuals will have direct impact on the way charities operate, including:

• Increased demand on charities to provide greater evidence and transparency in how they spend their money. (78% of high net worth donors don’t consider charities to be efficient organizations)
• In an effort to achieve greater impact, charities and individuals will leverage their use of the Internet as a platform for giving
• Wealthy individuals are increasingly using professional advisors to help determine how they achieve the greatest possible impact with their donations.

Methodology

The report was authored by Ledbury Research on behalf of Barclays Wealth, to examine how the changing attitudes of high net worth donors will alter the future of charitable giving. It does not aim to canonize these individuals, but rather to better understand how these donors are changing behaviorally and attitudinally, and to assess the impact that these changes will have on the philanthropic activity in the future. The report is based on two main strands of research, conducted by Ledbury Research in May 2009. The first is a survey of 500 high net worth individuals in the US and UK (all with investable assets of over $1 million /£500,000). Included were over 150 ultra high net worth individuals (all with investable assets over $5 million /£3 million). The results represent the first time that attitudes of high net worth donors in the US and the UK have been compared and contrasted in such a manner.

About Barclays Wealth

Barclays Wealth is a leading global wealth manager, and the UK’s largest, with total client assets of $210bn (£145bn), as of 31 December 2008. With offices in 25 countries, Barclays Wealth serves high net worth, affluent and intermediary clients worldwide, providing international and private banking, investment management, fiduciary services, and brokerage.

Barclays Group is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the Americas, Africa and Asia.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 155,000 people. Barclays moves, lends, invests and protects money for over 48 million customers and clients worldwide.

For further information about Barclays Wealth in the Americas, please visit www.barclayswealthamericas.com.

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Barclays Wealth is the wealth management division of Barclays Bank PLC, functioning through Barclays Capital Inc. in the United States. Barclays Capital Inc., an affiliate of Barclays Bank PLC, is a U.S. registered broker-dealer and regulated by the Securities & Exchange Commission. The registered office of Barclays Capital Inc. is 200 Park Avenue, New York, NY 10166. Barclays Bank PLC is registered in England and Wales (registered no. 1026167) with a registered office at 1 Churchill Place, London, E14 5HP, United Kingdom. Barclays Bank PLC is authorized and regulated by the Financial Services Authority. Member SIPC.