2008 Brief Explores the Market for Philanthropy and Its Viability as a Customer Retention Tool for High Net Worth Individuals.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/research/e5bfa0/philanthropy_as_a) has announced the addition of the "Philanthropy as a Customer Retention Tool 2008" report to their offering.

Philanthropy is growing worldwide. This brief presents the extent and characteristics of giving based on several important external studies, and proposes that wealth managers offering strong philanthropy services can retain their existing client base, and the children of those clients.

Scope

- Sets the stage by highlighting the extent of charitable giving in US, Europe and Australia (secondary research).

- Explores motivations for philanthropic giving.

- Summarizes 5 banks marketing of philanthropy services.

Highlights of this title

In the United States, charitable giving is on the increase due to the generosity of entrepreneurs. In 2006, charitable giving in the United States amounted to $289.5 billion, representing 2.2% of GDP, and an 11% increase on giving in 2005.

Smith Barney appeals to emotive reasoning, highlighting mutual benefits: "Datamonitor all have personal reasons for giving to charity, but many of us give out of a common desire to share our good fortune with others. And while our generosity can certainly improve the communities in which we live and work, it can also help us financially."

37% of European HNWs earned their wealth though entrepreneurship, according to Datamonitors Datamonitoralth Management Market Leaders Survey. The extent to which HNW individuals earned their wealth from business entrepreneurship ranged from 28% in the UK to 43% in Italy.

Key reasons to purchase this title

- Gain an overview of the state of philanthropic giving.

- Understand the motivations for and changing nature of philanthropic giving.

- Provides high level advice to banks seeking to use philanthropy as customer retention tool.

Key Topics Covered:

CATALYST

SUMMARY

ANALYSIS

Charitable giving is a large and growing market among the worlds wealthy

Legal and social frameworks differ between countries and lead to different incentives to give

Charitable giving in the US is growing and totaled $289 billion in 2006

Charitable giving in the UK totaled $29 billion in 2006 and there are positive trends emerging within the UK philanthropy sector

Philanthropy is increasing in Europe, although there is a lack of standardization in reporting requirements

Foundations in both Europe and the US have increasing budgets for charitable work

Australians gave $11 billion (USD9.6 billion) to charity in 2004

Vehicles for giving used by high net worth households

Foundations create a structured process for giving

The motives of the new philanthropists are strategic

The philanthropic customer base is changing to one where philanthropists are driven by a cause and want to give in their own lifetime

The source of wealth of HNW clients has implications for the strategic advice offered by banks

The changing philanthropic customer base reflects changes in the motives for giving and results in a different type of giving

Traditional motives for giving revolve around recognition of a need to "give back" to society

The wealthy give for essentially four reasons

Banking institutions aiming to retain high net worth clients clearly link their clients motives to the provision of services

Banking institutions targeting high net worth clients can use philanthropy to retain these valuable clients for generations

HNW customer retention is a problem for banks

Mixing investment and philanthropy is a valuable way of ensuring that banks retain their HNW clients

Intergenerational wealth transfers are increasing

There is a generation of young, wealthy people who are contributing to the increase in philanthropy

Banks differ in how they are marketing their philanthropy services on their websites

Coutts

Smith Barney

Private Family Foundations - private family foundations are legal entities established and funded by individuals to aid charitable causes. Importantly, Smith Barney points out that foundations give donors and their families the maximum ability to control their charitable investments and grant making.

Deutsche Bank 

UBS 

Goldman Sachs JBWere

APPENDIX

Four different types of foundation exist

Methodology

Bibliography

Further reading

Ask the analyst

Our consulting

Disclaimer

List of Tables

Table 1: Allocation of total donations from high income US households, 2005

Table 2: Private charitable donations in the United States, 2005

List of Figures

Figure 1: Allocation of total donations from high income US households, 2005, $ billion

Figure 2: Private charitable contributions in the United States, by segment, 2005

Figure 3: Vehicles used for giving by high net worth households in the US, 2005

Figure 4: HNWs whose wealth is acquired through entrepreneurial activity ranges from 28% of HNWs in the UK to 43% of HNWs in Italy

Figure 5: Motivations for charitable giving by US high net worth households

For more information visit http://www.researchandmarkets.com/research/e5bfa0/philanthropy_as_a

Source: Datamonitor