By Anna Vayanos
Head: BoE Private Clients Philanthropy Office

Do High Net Worth Individuals give? Which sectors do they support? How do they choose their beneficiaries?

These were just some of the questions that many were asking and as a result we embarked on the first comprehensive national survey of the philanthropy practices of High Net Worth Individuals (HNWIs) in South Africa. The Giving Report 2010 was completed towards the end of last year and the full report is available to all on www.thegivingreport.co.za.

What follows below is a summary of just some of the findings relevant to the non-profit sector. At a time when funding is under pressure, particularly from overseas donors, HNWIs offer a largely untapped funding base for many NPOs. The report gives some valuable insights, that if actioned effectively, could translate into more meaningful involvement with this type of donor.

1. The vast majority of HNW donors are involved in giving.
   93.5 % of HNWIs donated time, money or goods to social causes in 2010.

2. HNW donors are motivated by "wanting to make a difference".

3. As as result, it is not surprising that social and community development is the most supported. sector. We used this as a catch all category for organisations dealing with day to day need in society such as hospices, children’s homes and care for the aged.

4. HNW donors place little restriction on the use of funds given.
   Over 75% give undesignated funding/funds for "general support".

5. HNW donors expect little in return.
   55% expect nothing in return. 17% expect thank you letters and only 11% a report on the impact of their donation

6. HNW donors don't actively seek out organisations to fund
   Most identified their beneficiaries through direct approach by the organisations.

7. HNW donors are very loyal.
   Over 60% of donors support an organisation for over 3 years and 30% for a lifetime.

8. Very few measure the success/ impact of their donation.

9. Few make provision for giving after death.
   Only 15% have made provision for bequests or continued giving after death.

10. They like to give locally.
    77% give in their province of primary residence.

On the whole, the findings showed that the experience of giving by this donor grouping is overwhelmingly positive. What is also clear though, is that there is not much involvement between the HNW donor and the organisations that they support.

These findings are bound to stimulate debate and as a result hopefully an opportunity to forge closer working relationships between HNW donors and the NPO sector.