Tag Archives: wealth report

Review of Charitable Giving by Affluent Households

Review of Charitable Giving by Affluent Households – Part 2

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What is this Report?

The 2023 Bank of America Study of Philanthropy report is the 9th biennial examination about philanthropic attitudes, priorities, and more for affluent US households in 2022. It is written as a collaboration between Bank of America and the Indiana University Lilly Family School of Philanthropy. It is based on 1,623 wealthy US households, defined as either a net worth $1M+ or annual household income of $200K+. The average mean income was $523,472 and average mean wealth of $31M.

The report was full of so much valuable information, we decided to split it into two blog posts.

Continue reading Review of Charitable Giving by Affluent Households – Part 2 →
Review of Charitable Giving by Affluent Households

Review of Charitable Giving by Affluent Households – Part 1

Fundraising Insights, , , , , , , ,

What is this Report?

The 2023 Bank of America Study of Philanthropy report is the 9th biennial examination about philanthropic attitudes, priorities, and more for affluent US households in 2022. It is written as a collaboration between Bank of America and the Indiana University Lilly Family School of Philanthropy. It is based on 1,623 wealthy US households, defined as either a net worth $1M+ or annual household income of $200K+. The average mean income was $523,472 and average mean wealth of $31M.

Continue reading Review of Charitable Giving by Affluent Households – Part 1 →
Family Opportunities: UBS Global Family Office Report 2023

Family Opportunities: UBS Global Family Office Report 2023

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What is this Report?

The report is the 4th annual global family office report by UBS. The report provides comprehensive research on family offices throughout the world. Participating in the study were 203 family offices, each with an average $2.2B net worth.

Continue reading Family Opportunities: UBS Global Family Office Report 2023 →

Review Capgemini World Wealth Report series 2023 Wealth Management

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What is this Report?

The report is the 27th annual world wealth report by Capgemini Research Institute. The report analyzes the state of wealth and wealth management across the world in the prior calendar year. The report focuses on High Net Worth Individuals (HNWIs) defined as individuals with assets of $1M+ and over.

What are key findings from the article?

  • The global economy showed signs of slowing compared to prior years. Notably, the global economy grew 3.2% in 2022, compared to 6% in 2021.  North America saw a steep decline in HNWI wealth of 7.4% and HNWI population in 6.9% but North America remains number 1 in wealth amount and total population. Asia-Pacific and Europe saw declines in both wealth and population of HNWI. Africa, Latin America, and Middle East saw growth.
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Review of Fidelity Charitable Giving Report 2023

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What is this Report

The report is an annual report of Fidelity Charitable donor advised giving for the prior year. It explores both giving to Fidelity Charitable donor advised accounts as well as giving from donor advised funds to charities.

Continue reading Review of Fidelity Charitable Giving Report 2023 →

Neon One’s Donors: Understanding The Future of Individual Giving – Part 2

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NeonOne set out to understand what individual giving looks like in the post-pandemic world. By reviewing many sources including academic journals, industry reports, blogs, and more, they have synthesized six questions:

  • Who are our donors?
  • What do our donors support?
  • When do our donors give?
  • Where are our donors?
  • Why do our donors give?
  • How do our donors give?

In Neon One’s Donors: Understanding The Future of Individual Giving – Part 1, we focused on the first three questions. In this Part 2, we are focusing on the last three questions.

Continue reading Neon One’s Donors: Understanding The Future of Individual Giving – Part 2 →

Charities Aid Foundation World Giving Index 2022

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What is this Report?

The report is an annual report that looks at global giving focusing on three areas: helping strangers, donating money to charity and volunteering time. The report has surveyed 1.95 million people since 2009. For 2022, CAF included data from 119 countries, which was 90%+ of the total adult population on the earth.

Continue reading Charities Aid Foundation World Giving Index 2022 →

Neon One’s Donors: Understanding The Future of Individual Giving – Part 1

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What is this Report?

NeonOne set out to understand what individual giving looks like in the post-pandemic world. By reviewing many sources including academic journals, industry reports, blogs, and more, they have synthesized six questions:

  • Who are our donors?
  • What do our donors support?
  • When do our donors give?
  • Where are our donors?
  • Why do our donors give?
  • How do our donors give?

Due to the length of the report, Aspire will focus on the first three questions. The second part will be published in 2023.

Continue reading Neon One’s Donors: Understanding The Future of Individual Giving – Part 1 →

Reviewing the World Ultra Wealth Report 2022

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What is this Report?

Reviewing the World Ultra Wealth Report 2022

The report is the first World Ultra Wealth Report that is published by Altrata. It’s the tenth such report using Wealth-X data. The report looks at the global ultra-high net worth (UNHW) population in the first half of 2022.

UHNW individuals are defined as individuals who have a net worth over $30 million. High net worth population is defined as individuals with net worth over $1M.

What are key findings from the article?

  • The Ultra High Net Worth population fell by 6% and the combined value of wealth dropped 11% in the first half of 2022. The report points to the war in the Ukraine and global economic volatility (including inflation) as causes of the drop.The population of UHNW individuals totals 392K and they have combined net worth of $41.8trn. “The ultra-wealthy account for just 1.2% of the global HNW population, yet hold over 31% of this group’s total wealth.”
  • North America reported the biggest drop in total UHNW individuals at 10%. China was the only major wealth market that saw a rise of 2.3% in total number of UHNW. In the US, the report believes the drop is due to policy changes at the Federal Reserve, rising interest rates, “slump in capital markets.”However, the US is still number one with 121,465 UHNW individuals, followed by China with 51,145 individuals. Germany, Japan, and Hong Kong are the next three respectively. Hong Kong is the #1 city of UHNW individuals followed by New York and Los Angeles.
  • While women are only 11% of UHNW population, their numbers are rising. The average age of UHNW women is 64 and more than half inherited some or all of their wealth.
  • However, the number of UHNW women who are self-made is not evenly distributed in all regions. US is close to the average at 51.1% whereas China has a whopping 81% of UHNW women who made their wealth. Other countries like Germany are lower, at 16.5%.
  • The majority of UHNW women work in the non-profit and social organizations sector. In comparison, the majority of UHNW men work in banking and finance. The report ascribes the higher percentage of women in nonprofits due to greater amounts of inherited wealth.
  • Asset distribution is similar for both UHNW women and men except with real estate. UHNW women tend to invest a higher percentage of their wealth in real estate and luxury assets compared to men. UHNW women tend to prefer jewelry and art as luxury assets compared to men. Notably the report found, “Women account for 70 of every 100 UHNW owners of luxury watches and jewelry, assuming an equal number across genders. In contrast, UHNW men prefer jets and yachts.
  • Given that nonprofits are the number one industry for UNHW women, it’s not surprising that philanthropy is the biggest hobby of the population. For UHNW men, sports are first, then followed by philanthropy. Both UHNW men and women prioritize giving to education, followed by arts & culture, then social services.
  • In the US, UHNW women make larger political gifts on average: $134K compared to $125K. They donate more frequently, but men tend to give bigger donations from companies.

Additional Resources

Boston Consulting Group Global Wealth 2022

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What is this Report?

The Boston Consulting Group’s 22nd annual report looks at global wealth as well as the field of wealth management. Ultra-high net worth individuals are those individuals with assets over $100M.

What are key findings from the article?

  • Global wealth expanded by 10.6% in 2021. It’s the fastest rate in a decade with $26 trillion in new wealth. BCG credits gains were made in corporate profits and real assets. The company noted the resiliency of wealth growth despite the pandemic and the Great Recession.
  • However, BCG warns of destabilizing factors of global inflation and Russia’s invasion of Ukraine. Their models suggest that there would be a short-term decrease in wealth but then an average rate of growth at 5.3% through 2026. The company also expects inflation to stay high in 2022 but decrease in 2023.
  • Asia-Pacific and Oceania (but not Japan) is projected to have the largest growth of 8.4% through 2026. Middle East and Africa would be next with 5.4% and then North America at 4.1%. Western Europe would drop to 4%.
  • Sustainable investing is growing fast. Investors are keen on net-zero, which means that the amount of greenhouse gases produced, and gasses taken from the atmosphere are zero. Companies have a goal of becoming net zero by 2050 but investors want changes now. BCG believes that by 2026 the asset class of sustainable investing will rise be 8%-17%, a rise from 4%-11% today. Wealth managers will have to consider climate data when making recommendations for investments.
  • The report noted: “Responsible investing—which loosely considers environmental, social, and governance (ESG) factors—is not the same as sustainable investing.”  The report defines sustainable investing as including investing in companies with top sustainable sectors. Broader sustainable investing excludes investments that fail to sustain measures like net zero by 2050. It excludes things detrimental to the world such as weapons and war manufacturing.
  • Cryptocurrency will grow 4 to 5 times bigger before 2030. BCG makes this prediction despite the recent turmoil in the sector. Although cryptocurrencies are 90% of the space, there is a growing interest in NFTs, crypto custody and insurance, mutual funds, crypto options and futures and more. BCG thinks there will be regulations in the future. Blockchain-based decentralized finance, known as DeFi, attracted more than $200 billion in assets since April 2022. Major financial institutions such as Wells Fargo, JP Morgan Chase have hired people in crypto-related jobs since 2018.
  • Digital wealth management (WM) companies have grown significantly, attracting $14.5 billion in 2021. Digital WM uses financial technology, sometimes automation, to provide wealth management services to its customers, usually completely remotely. These are younger companies, many formed in the past 15 years. Examples include Marstone, Yield Stone, and StashAway.

What can I do as a result?

  • While investors are becoming more interested in sustainability and net-zero, prospective donors might become interested in how your organization is implementing/considering these areas. Even if you aren’t a nonprofit with an environmental focus, these concerns about environmental impact are going to expand in future areas, not just the world of wealth management.
  • While extremely volatile, crypto is likely here to stay. While many think we are seeing the final hemorrhaging of the cryptocurrency, it’s significant that BCG thinks it will continue. How prepared is your organization to accept it? Or has your organization made a choice not to accept it due to ethical concerns, such as environmental cost, etc.? As noted in previous blog posts, the industry is new and there will be startups that will fail and others succeed, just as we have seen with other industries.
  • But cryptocurrencies and NFTs are not all there is to crypto. Decentralized finance is likely to grow, and a new class of prospects may come out of that industry with money to donate.
  • With the increase in digital wealth management, more people have access to invest in private equity, private debt and pre-Initial Public Offering (IPO) participation that was originally limited to top investors. Digital WM can bundle these investments with multiple individuals. This means that more prospects may have investments, but may be using digital services instead of traditional wealth management firms.

Additional Resources