The Anatomy of Giving: Drives behind Philanthropic Giving

The protracted wrangling over deficit reduction and tax codes in Washington in recent years has raised concerns about the negative impact on charitable giving. Would the elimination of tax deductions act as a disincentive for the wealthy to give, possibly crippling the nonprofit sector?

Such fears appear unfounded, according to recent research from SEI. Taxes are not the main driver behind philanthropic giving, at least among the wealthy. Multimillionaires share their wealth because it’s part of who they are. It defines them as individuals and gives purpose to their wealth. In fact, most wealthy individuals would give even more if they could develop a strategic approach to their philanthropy and see clear evidence their gifts are having the appropriate impact. This research paper provides keen insights into how and why wealthy individuals share their wealth.