Billionaires who build their own fortunes are more likely to make generous donations to charity that those who inherit their wealth, a new study finds.
The study was conducted by researchers from the University of Southampton. For the study, the experts looked into written testaments of wealthy philanthropists who have signed up for The Giving Pledge, a venture which encourages billionaires to donate at least half of their wealth to charitable causes. It was launched in 2010 by Warren Buffet and Bill and Melinda Gates.
"The written testaments of pledgers give us a fascinating insight into the philanthropic motivations of the extremely rich. They provide a unique window on a relatively small group of people who are key to the promotion of charitable causes," study author Dr. Mirco Tonin said in a press statement.
The first finding the researchers reported was that self-made billionaires were more likely to sign the Giving Pledge than those that had inherited their wealth. The second finding researchers highlighted was the fact that philanthropy is impact driven. In the Giving Pledge letters, billionaires talk mostly about what kind of changes they want to achieve, often displaying a business-like attitude in their approach.
Researchers said that their findings can be very helpful for fundraisers to maximize their effectiveness in getting wealthy people to donate for their cause. One advice the researchers offered such organizations was to target people with newly acquired fortunes than those that have been heirs of dynasties. Secondly, such organizations should develop a detailed business plan that clearly points out the objectives behind all donations.
"The philanthropic activities of extremely rich individuals, such as, Andrew Carnegie, John Rockefeller and more recently Bill and Melinda Gates, have not only benefitted many people and causes, but have also inspired new generations of philanthropists," Tonin said. "We feel this report gives a valuable insight into the motivations behind the 'giving' behavior of the very rich, which will prove very useful for charitable organizations and fundraisers."
