The Beacon Collaborative Downward dip in major gifts bolstered by wider giving by the wealthy
The summer months are a quiet period of giving for major donors and this year was no exception. The average amount given by wealthy donors between July and September was £7,700, compared to £19,400 in the previous quarter.
There is no doubt that the period from April to June was active for major donors, driven by the conflict in Ukraine and the growing financial crisis at home. A lull in giving by major donors is therefore to be expected.
However, while major gifts quietened down, across the wider wealthy population giving remained steady. The median level of giving was up slightly from £500 to £510.
These results are based on quarterly pulse survey of high-net-worth giving trends in the UK done in conjunction with Savanta’s MillionaireVue survey. A representative sample of UK millionaires are asked how much they gave to good causes in the previous quarter.
Since the first survey in 2020, the median level of giving has been on an upward trend from £200 in June 2020 to £510 in the latest research. The median is a good indicator for what is happening in the wider wealthy population because it denotes that half of the millionaire population is giving above this level. The mean, or average, is much more sensitive to what happens among major donors.
In this latest research we also asked what kinds of giving they included in their total. The results showed that most wealthy people give both cash donations as well as supporting charities through fundraising, sponsorship, charity auctions, charity shops, tickets to charity events or membership fees.
In fact, two-thirds (68%) gave a personal donation or gift from their family foundation. In addition, a quarter (26%) gave to someone else’s fundraising efforts, and a quarter (25%) included purchases at charity auctions or from charity shops in their total.
Of note, those with the highest levels of wealth are much more likely to fundraise and include that in their total giving. One-third of those with wealth greater than £5 million included their own fundraising in their total, compared with 17% of those with £1 million.
In fact, those with higher levels of wealth are more likely to engage across the spectrum of fundraising opportunities.
The results highlight that there are seasonal patterns to major giving, but the steep downturn in the average given by the wealthiest is of concern. In fact, the value fell from £31,500 in June to £2,500 in September among those with wealth greater than £5 million. This may denote a degree of fatigue setting in after a series of crises in recent years.
However, the wider wealthy population is engaging in higher levels of giving with activity across the spectrum of fundraising opportunities. The importance of engaging wealthy donors with an active fundraising programme will be particularly important in the coming months, especially if the wealthiest donors are unable to replenish their giving to the generous levels seen earlier this year.