Giving Compass' Take:

• Teresa Esmezyan explores a report about the giving habits of ultra-high net worth individuals.

• The emphasis here is on the growth of impact investing and the ways that it can help governments around the world who usually have to rely on NGO generosity. Is impact investing the right vehicle for accomplishing your philanthropic goals?  

• Read about why impact investing is the future of philanthropy.

As globalization rapidly progresses, there is a growing need for innovation and diversification in philanthropic activities that extend beyond traditional donations and charities. Whether it be impact investing, microfinancing, venture philanthropy, entrepreneurialism, or continued job creation, the ultra-high net worth (UHNW) population is ultimately redefining the essence of philanthropic giving.

By ushering in new philanthropic models that combine traditional foundations with profit-making endeavors and social enterprises, these innovative methods of giving are driving, and improving, the global socio-economic landscape.

Studies in the report, Changing Philanthropy by Wealth-X and Arton Capital, have shown that the world’s richest 1% are responsible for 99% of the world’s charitable donations. On average, UHNW individuals  —  those with a net worth of $30 million or more  —  will donate $29.6 million over the course of their lifetimes, with total global UHNW public lifetime giving estimated at $550 billion to-date.

This model of giving is already implemented within the Citizenship by Investment industry, where investors pledge to become Global Citizens by positively and significantly impacting nations, including Antigua and Barbuda. By attracting these UHNW individuals, these Citizenship by Investment Programs (CIP) are incorporating global business opportunities for the investor and amplifying them with social and local benefits for the nation.

Through investments and donation contributions, these Global Citizens secure a safer and brighter future for themselves and their families, while bringing in foreign direct investments to the host nations. This mutualistic relationship not only creates multitude of benefits for the citizens of the host countries who are- in many cases-in dire need of funding and support, but is equally favorable to the nation itself, which will no longer have to depend on global NGOs for funding.

Read the full article about how ultra-high net worth individuals are giving by Teresa Esmezyan at Medium.