Wealthy donors in emerging economies are more likely to give away all their money to charity during their lifetimes than those in developed countries, including the UK, says a study by Barclays of the spending habits of international philanthropists.
The report, Origins and Legacy: the changing order of wealth creation, published yesterday, is based on a survey of 2,000 international high net worth individuals, including 501 from the UK.
Respondents were asked whether they planned to pass on the majority of their assets to family and friends or to charity, and whether they planned to do this during their lifetimes or as inheritance.
The report says that 42 per cent of respondents in Qatar and 20 per cent in India planned to give away 100 per cent of their wealth to charity, family and friends during their lifetimes, compared with only 5 per cent of those in the UK.
It says that 40 per cent of all respondents who earned their money as entrepreneurs and business owners planned to give to charity during their lifetimes, compared with 17 per cent who planned to leave money to good causes in their wills.
Emma Turner, head of client philanthropy at Barclays, said wealthy donors in the UK were increasingly thinking about what they should do for the next generation. "Someone who has made a lot of money is, for a variety of reasons, not sure whether to hand it down to the next generation – one of which is that they feel their children should make their own way in life," she said.
Motivation for giving was also affected by the donors’ source of wealth, the report says. Entrepreneurs were less likely than those who had inherited their wealth to give to charity out of a sense of duty and responsibility, but were more likely to donate out of a desire to leave a legacy.
Turner said: "Business owners and entrepreneurs particularly like to be involved in their giving. They may want a position on the board.
"Their business acumen can be a valuable gift. These are the people who want to know more about the organisations to which they are giving, want to understand how their money will be used and want to see its impact. Donors are asking more tangible questions than they did 10 or 15 years ago."