Nedbank Private Wealth has been exploring the giving behaviours of high-net-worth individuals (HNWIs) in South Africa since 2010. Before the first publication of The Giving Report, there had been limited research on philanthropy, not only in South Africa but across the continent. Since then, a new report has been published every two to three years and the fifth edition was released in 2022. The report provides insights on the giving practices of HNWIs with the aim of strengthening philanthropy and encouraging giving across the nation.
Methodology
A panel of philanthropic experts provided input into the research process and interview questions. Closed-ended survey questions were revised slightly from previous years and several new questions were added for the purposes of international comparison and to analyse the effect of the Covid-19 pandemic on giving behaviours.
Interviews were conducted (mostly telephonically) with a total of 409 HNWIs across South Africa between April and June 2022. Respondents were asked 70 questions, which were designed to build an understanding of HNWI giving during 2021.
Findings
HNWIs have an enduring commitment to supportting the well-being of our society:
83% of HNWIs gave money, time or goods in 2021
HNW givers support causes that resonate with them
and are becoming more intentional about how they give, with a growing number adopting specific funding strategies
Definition: high-net-worth individual
For the purposes of this study, HNWIs are defined as:
- Earning an income of at least R1.5 million per annum; or
- Owning investable assets of over R5 million, excluding their primary residence.
Motivations for giving
The majority of HNWIs (57%) give to causes that they care about. Wanting to make a difference (50%), supporting a need of which they were made aware (37%) and wanting to give something back to their community or country (37%), were the other motivations frequently expressed by HNWIs. Only 4% of respondents felt motivated to respond to the Covid-19 pandemic.
Top three motivations for giving
Care about the cause
57% in 2021
51% in 2018
Want to make a difference
50% in 2021
64% in 2018
Support a need of which I have been made aware
37% in 2021
19% in 2018
Give something back to the community/country
37% in 2021
45% in 2018
Religious beliefs
23% in 2021
32% in 2018
Set an example for my family
14% in 2021
17% in 2018
Family tradition of giving
12% in 2021
20% in 2018
Involvement in organisation
12% in 2021
10% in 2018
Remedy an issue affecting ma personally
8% in 2021
6% in 2018
Responses to humanitarian/ natural disaster
7% in 2021
7% in 2018
Asked by NPO/charity
6% in 2021
6% in 2018
Response to Covid-19
4% in 2021
–
Asked by friend/family/associate
4% in 2021
5% in 2018
Ideological beliefs
4% in 2021
5% in 2018
Tax incentives
2% in 2021
1% in 2018
Business/ social influence
2% in 2021
3% in 2018
Public acknowledgement
–
1% in 2018
–
–
Other
2% in 2021
3% in 2018
% response, multiple mentions 2021 n=341 | 2018 n=355
Sectors supported
Social and community development remained the most supported sector by HNWIs in 2021. The results showed that between 2018 and 2021, giving to religious institutions or causes decreased from 41% to 25%, while giving towards education diminished from 32% to 22%. Just under a fifth (18%) of HNWIs gave towards causes relating to the Covid-19 response, while mentions declined for almost every other sector.
Sector focus of giving
Social and community development
66% in 2021
66% in 2018
Religious intitutions or cause
25% in 2021
41% in 2018
Education
22% in 2021
32% in 2018
Covid-19 response
18% in 2021
–
Animal welfare
16% in 2021
25% in 2018
Health
16% in 2021
24% in 2018
Disaster relief
12% in 2021
15% in 2018
Food security and agriculture
11% in 2021
13% in 2018
Environment
9% in 2021
11% in 2018
Housing and living conditions
8% in 2021
15% in 2018
Safety and security
6% in 2021
6% in 2018
Entrepreneurship/jobs/small businesses
6% in 2021
7% in 2018
Social Justice
4% in 2021
3% in 2018
Sports
4% in 2021
10% in 2018
Democracy and good govrnance
1% in 2021
1% in 2018
Arts and culture
1% in 2021
5% in 2018
Political parties
–
1% in 2018
Other
5% in 2021
2% in 2018
% response, multiple mentions 2021 n=341 | 2018 n=355
Transformation in the philanthropic landscape
There has been significant demographic transformation within the philanthropy landscape. In 2021 Black South Africans represented 26% of HNWI givers, up from 10% in 2012, and the majority of givers (56%) were women.
Profile of HNWI givers
%
2012
White = 79%
Black African = 10%
Indian/ Asian = 10%
Coloured = 1%
2016
White = 78%
Black African = 11%
Indian/ Asian = 9%
Coloured = 2%
2018
White = 95%
Black African = 3%
Indian/ Asian = 2%
Coloured =
2021
White = 58%
Black African = 26%
Indian/ Asian = 12%
Coloured = 4%
%
2018
Male = 52%
Female = 45%
Prefer not to disclose = 3%
2021
Male = 42%
Female = 56%
Prefer not to disclose = 2%
Amounts given
Giving levels were negatively impacted by the severe economic effects of the Covid-19 pandemic. Despite the increase in the number of HNWI givers in 2021, the overall value given decreased by around R2 billion to R4.2 billion, a level last observed in 2015.
More than half of HNWIs (56%) gave less than R10 000 in 2021 – the highest proportion since the survey began.
Value of cash giving
Less than R10 000
56% in 2021
39% in 2018
43% in 2015
48% in 2012
R10 000 – R25 000
21% in 2021
25% in 2018
25% in 2015
20% in 2012
R25 000 -R50 000
8% in 2021
14% in 2018
14% in 2015
12% in 2012
R50 000 – R75 000
5% in 2021
8% in 2018
5% in 2015
9% in 2012
R75 000 – R100 000
3% in 2021
4% in 2018
5% in 2015
3% in 2012
R100 000 – R250 000
4% in 2021
6% In 2018
5% in 2015
5% in 2012
More than R250 000
3% in 2021
4% in 2018
3% in 2015
2% in 2012
% responses
2021 n=299
2018 n=309
2015 n=310
2012 n=339
Non-giving behaviour
A third (30%) of non-giving respondents indicated that nothing would persuade them to give in the future. Approximately a fifth (21%) of non-givers suggested that they would give if their disposable income or asset liquidity improved. Only 1% of respondents would give in the future if there were amendments to tax incentives.
Recommendations
Givers
- Corporates and individuals should structure their giving, have a clear strategy and measure impact.
- Fully engage with grantee partners to develop a deep understanding of their needs.
- Consider the importance of unrestricted funding and trust-based philanthropy in capacitating the non-profit organisation (NPO) sector.
Non-profits
- Although the findings suggest that HNWIs have low expectations of engagement with recipients following donations, maintaining ongoing relationships with donors is a key component of the fundraising process and could help secure long-term donors.
- Take time to get to know your donors, especially while engaging in the fundraising process.
- Study the report to gain a better understanding of HNWI donors, their interests, motivations and expectations. This will enable you to create an appropriate strategy to approach donors.
Companies
- Use these findings to educate as well as encourage employees and clients to continue playing an active role in the development of our nation.
- Consider incorporating HNWIs into your partner base for development projects, empowering each stakeholder to utilise their strengths as a link in the development value chain.
- Educate givers and non-givers on legislated incentives as well as showcase the efforts of NPOs, providing a platform for visibility and support.
CASE STUDY
Hans Hoheisen Charitable Trust
Hans Hoheisen (1905–2003) had an enduring passion for indigenous fauna and flora, pioneering groundbreaking approaches to conservation through his generous philanthropic practice. His legacy lives on through the substantial bequest he made to the Hans Hoheisen Charitable Trust, established and managed by Nedbank Private Wealth. The trust has grown by well over R200 million to more than R500 million in 2023, making it one of the largest private trusts supporting conservation in South Africa.
The trust aims to facilitate the protection, restoration, improved resilience and sustainable use of South Africa’s species and ecosystems by providing grants to conservation bodies engaged in physical biodiversity conservation and working in the cross-cutting environmental governance and advocacy, climate change, research and education arenas.
Since 2009, R213.9 million has been granted to 372 projects (some receiving multi-year grants) across South Africa.
Find out more
- Download The Giving Report V .
- For more information about the report, please contact Tracy Muller, Head of Advice and Philanthropy at TracyM@Nedbank.co.za or Clara Kwizera, Philanthropy Specialist at ClaraK@Nedbank.co.za.
Source: The original version of this article was published in the Trialogue Business in Society Handbook 2023 (26th edition).
