Editor’s Note: This article was largely taken directly from the press release on the Bank of America Merrill Lynch 2011 Study of High Net Worth Women’s Philanthropy. The study was done by the Indiana University’s Center on Philanthropy in partnership with BoA.
We want to know how this study resonates with our readers and to hear your analysis of the findings of this long overdue study.
According to a new study by the Center on Philanthropy at Indiana University in nearly 90 percent of high net worth households, women are either the sole decision maker or an equal partner in decisions about charitable giving, according to the Bank of America Merrill Lynch 2011 Study of High Net Worth Women’s Philanthropy, released today. The authors of the study say that the “power and influence of women in philanthropy may mean that some charitable organizations will need to adapt their messaging and strategies to appeal to women’s distinct charitable giving behaviors and motivations.”
Among the key findings of this important study (quoting from the press release):
- Women spend more time than men on due diligence before making decisions about giving to a charitable organization.
- Women expect a deeper level of communication with the organizations they support and place greater importance than men on the efficiency and effectiveness of the organization and hearing about the impact of their gift.
- Women want to be actively involved with an organization and its mission, with volunteering being among the most important motivations for women to give.
- Women are more likely than men to stop giving to an organization they had previously supported whereas men tend to support the same causes year after year.
The study often finds women generally were slightly “more strategic in their charitable giving, with 78 percent creating an annual giving strategy and/or budget compared to 72 percent of men. About a quarter of high net worth individuals have neither a strategy nor a budget for their giving (22 percent for women and 28 percent for men). “
Women also more often want to see the impact they are having
Personal experience with a nonprofit (women:82 percent)(men:73 percent) and the organization’s ability to communicate its impact (women:46 percent)(men:32 percent) are important factors to donors when making charitable giving decisions. High net worth women also listed third-party ratings about an organization (23 percent) as a factor.
When making a gift, women (80 percent) more so than men (68 percent) expect that the nonprofit will honor their request for how the gift is used, and that the organization will share with them the positive impact their gift has made (women:45 percent)(men:26 percent). In addition, more high net worth women (91 percent) than their male peers (83 percent) expect nonprofit organizations to send a receipt for tax purposes.
Why women give
Women (82 percent) are more likely than men (71 percent) to be motivated to give when they are moved by how their gift can make a difference in the world, and because they want to set a good example for the next generation (women:44 percent)(men:25 percent). Efficient use of their gifts (women:81 percent)(men:69 percent) and giving back to the community (women:78 percent)(men:63 percent) were among the top motivations for women donors. Being actively involved with an organization and its mission through volunteering is also one of the most powerful motivators for women to give (women:66 percent)(men:50 percent). Men are more likely to cite supporting the same causes year after year as a motivation (men:68 percent)(women:60 percent) for giving.
Why women stop giving
Each year, nonprofits work to attract new donors to their organization and at the same time to retain the donors they have. The research explored the percentage of high net worth individuals who stopped giving to a nonprofit they previously supported and the reasons they discontinued their support. Women (49 percent) are more likely than men (41 percent) to stop giving to an organization they previously supported — with “too frequent solicitation/asked for inappropriate amount” cited as the top reason by both genders. Other reasons include their household circumstances having changed (women:31 percent)(men:28 percent) and/or that the organization changed leadership or activities (29 percent for both).
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Women and volunteering
Volunteering is an important means by which to address societal and global issues, demonstrate community investment in an organization and its work, and create advocates for an organization. Involving high net worth individuals as volunteers allows them to give more of their time and talent to the organizations and causes they value.
More than 87 percent of high net worth women report that they had volunteered, compared to about 78 percent of high net worth men. During their working years, wealthy women and men volunteer at similar levels, however, retired women (85 percent) volunteer notably more than retired men (72 percent)
Women more confident in nonprofits
Overall, high net worth individuals report a high level of confidence in nonprofit institutions and individuals to solve societal and global problems. Notably more women (50 percent) than men (34 percent) have a high degree of confidence in the ability of nonprofit organizations to address these issues.
The importance of giving circles and network associations
To obtain an additional sample of high net worth women, Bank of America Merrill Lynch and The Center of Philanthropy at Indiana University conducted a national survey of the American Red Cross Tiffany Circle, a network of women leaders and philanthropists who give $10,000 or more annually to their local American Red Cross Chapters. The Tiffany Circle members were asked similar questions to the previous series of research reports conducted by The Center of Philanthropy and Bank of America Merrill Lynch in order to provide deeper insights into the motivations and attitudes of high net worth women and the role of networks.
The findings of this study suggest that there is power in women’s networks and associations. Responses from networked women in this study suggest that women in networks are more loyal to philanthropic causes, more educated and informed about philanthropic choices, and more trusting of nonprofits than others.
A substantial majority of the networked, high net worth women (87 percent) report that their primary motivation for giving was to “give back to the community” as opposed to their non-networked peers (71 percent). Additionally, networked women give to organizations that use their donation efficiently (86 percent), organizations they are involved with (73 percent), and when asked to give (42 percent). This shows that women in giving networks are more intentional about their gifts of time and money. They also have a greater awareness of the needs in the community and are more confident in the ability of nonprofits and individuals to solve societal and global problems.
Overall, networked, high net worth women differ from their non-networked peers with respect to their expectations of nonprofits. Honoring their request for the use of the gift, communicating the impact of the gift, providing information about organizational effectiveness and offering involvement with the organization are among the top expectations, as reported by this group of networked women. These expectations may arise from the value that networked women place on having personal engagement with the organizations they support.
We would love to know what our readers think. Do these findings resonate with you? Or do you disagree with them? What are the implications?