Some Philanthropists Sacrifice So They Can Keep Giving

The Financial Times summarizes a new report from Barclays Wealth called Tomorrow's Philanthropist. Researchers for Barclays Wealth found that some philanthropists scrimp on their lifestyles so they can keep shoring up their charitable causes.

Of the 500 British and American philanthropists surveyed for the report, three-quarters have not decreased their contributions to charity, despite the global recession. In fact one in four has increased the amount of money donated to charitable causes recently.

The FT article says:

"Depleted investment portfolios, lower property prices and companies’ valuations have not pushed these individuals into scrimping on giving. Indeed, they would rather do away with new luxury cars, hiring staff, eating out and holidays than stop donating to favoured philanthropic causes, Barclays says. Only education fees remain untouchable... Barclays calls this breed 'the go-givers'. About three-quarters of those questioned who were under 45 believed individuals had to take on more responsibility for the needy as governments’ debts rise."

Many philanthropists are also increasingly using the services of organizations such as the Institute of Philanthropy and New Philanthropy Capital, consulting firms that evaluate the performance of charities and then recommend which ones to "invest in" to their clients. These services are pricey, but donors who have a lot of money to give consider them as necessary as their stock market investment advisers. It is indicative of the way the new philanthropy approaches giving money -- as an investment.

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