South African HNWIs continued to prioritise giving to social causes notwithstanding the sustained tough economic environment. Eighty-three percent of respondents gave money, goods and/or time in 2018, compared with 88% in 2015. Although the proportion of the sample of HNWIs that gave is trending downwards (91% in 2015 and 94% in 2010), it is encouraging that those who did give in 2018 gave more in time and money compared with previous surveys.
Furthermore, HNWIs with greater net worth and annual incomes were more likely to give in greater amounts.
Thirty-five percent of HNWI givers with a net worth of over R10 million gave over R50 000 in 2018, compared to 25% of the giving sample that gave at this level. And 40% of givers earning over R5 million a year gave over R50 000 in 2018.
Non-givers
The proportion of non-givers in the 2018 sample increased to 17% compared with 12% in 2015. However, more non-givers in 2018 had given previously compared with non-givers in the 2015 sample.
The most common reason for not giving in 2018 was that respondents were ‘not in a financial position yet’ (29%). A quarter reported a lack of trust or a previous bad experience as their reasons; in 2015 half of nongivers did not give for these reasons.
Three-quarters of non-givers would consider becoming givers in the future were they to receive a direct request from a friend, family, NPO or a charity, or in the case of a national disaster.
The main determinants of whether an HNWI gave to social causes were net worth and income levels.
HNWIs who do not give to social causes in the 2018 sample appear to be marginally more likely than their giver counterparts to be:
- earning between R1,5 million and R2 million per annum (64% of the non-givers earned in this category, yet they made up 53% of the total sample); commanding a net worth of less than R5 million (28% of non-givers, yet 15% of the sample);
- females (who made up 60% of non-givers, yet 48% of the sample);
- Black Africans (who made up 31% of non-givers, yet 19% of the sample); and
- between the ages of 31 and 50 years (making up 63% of non-givers, yet 49% of the sample).
Note: The observations of giving and non-giving based on race, gender and age profile are to be interpreted with care as they do not hold factors such as income or net worth constant.
Source details: Nedbank Private Wealth Giving Report IV
