The Changing Face of American Philanthropy. Winners and Losers

Transcription

11/4/15 Presented by:
Bruce Flessner
Minnesota Planned Giving Council
Annual Conference
The Changing Face of
American Philanthropy:
Winners and Losers in the
Decade Ahead
November 18, 2015
© Copyright 2015 Bentz Whaley Flessner
Bentz Whaley Flessner
“You’ve got to be
very careful if you
don’t know where
you are going
because you might
not get there.”
Yogi Berra
(1925–2015)
Overview
1 Entrepreneurial Economy
2 Baby Boomers
3 Women and Philanthropy
4 Changing Giving Patterns
5 Permanent Charitable Capital
1 11/4/15 Entrepreneurial Economy
The Middle Class is Disappearing
From 1979–2012, Incomes of the 1 Percent Grew by 181 Percent
In the same period, the rest of the country saw an increase of just 2.6 percent.
180.9%
2.6%
Top 1% Income Increase
Bottom 99% Income Increase
Source: Economic Policy Institute. Get the Data.
America is Poorer: Incomes Down
Over the Past Generation
-4.8%
Change in median family wealth 1989 to 2013
Source: http://money.cnn.com/2015/07/27/news/economy/wealth-diverse/
2 11/4/15 How Do We Define HNWI
and UHNWI?
You and Me
High-Net-Worth
Individuals
Ultra High-NetWorth Individuals
$30M+
> $3M
$3M–$29M
UHNW: Ultra High-Net-Worth
Individuals
The world’s UHNW
population
accounts for only
0.004% of the
world’s adult
population, but
controls almost
13% of the world’s
total wealth.
North America’s
UHNW population
grew by
6.2% to 74,865
Individuals, and
their combined
net worth rose
6% to $10.3 trillion
in 2014.
Source: Schwartz Center for Economic Policy Analysis “Are U.S. Workers Ready for Retirement?” (April 2015)
In 2007 Robert Frank Wrote Richistan
Lower Richistan: 7.5 million families with
$1 million to $10 million in net worth.
Middle Richistan: 2 million families worth
$10 million to $100 million.
Upper Richistan: Thousands of families
worth over $100 million.
Billionaireville: Forbes 400 list.
3 11/4/15 Richistan: 2015. Where Are We
Today?
Lower Richistan: 10 million households.
Added 500,000 last year.
Middle Richistan: 2.5 million families
worth $10 million to $100 million.
Upper Richistan: 5,000 families worth
over $100 million.
Billionaireville: Forbes 400 plus
125 more.
Entrepreneurial Economy Lesson:
Focus
Baby Boomers
4 11/4/15 Baby Boomers are Reaching
Retirement
10,000
Baby Boomers will turn 65 today.
Source: PEW research center.
Majority of Baby Boomers are
Ill-Prepared to Retire
33% of workers
aged 55 to 64 are
likely to be poor or
near-poor in
retirement based
on current levels of
retirement savings
and assets.
55% of households
in which the head
of the household is
55–64 will have to
subsist almost
entirely on Social
Security income.
Source: Schwartz Center for Economic Policy Analysis “Are U.S. Workers Ready for Retirement?” (April 2015)
High-Net-Worth Boomers
50%
Only
of HNW
Boomers ($3M+ in assets)
prioritize leaving money to
their kids (down from the
75% of previous
generations).
Own
19%
Decrease in
Wealth
Transfer
Expectations
of Boomers
Boomers control
of U.S. Household
Income and
70%
80%
Boomers own
of
all money in savings and
loan associations
65 = 54
65-year-olds today have
the same life mortality
and health of 54-yearolds in 1947
5 11/4/15 The Baby Boomers are An
Enormous Generation
Source: http://www.pewresearch.org/fact-tank/2015/01/16/this-year-millennials-will-overtake-baby-boomers/
Baby Boomers Lesson:
Greatest Generation
Baby Boomers
Women and Philanthropy
6 11/4/15 Women are Outliving Men
76.4
Average Life Expectancy
81.2
!  Nearly 1 in every 3 women
aged 65 today will celebrate
their 90th birthdays.
Source: CSC “Life expectancy: United States 2013” & http://www.bloomberg.com/news/2013-04-09/the-calamity-of-so-long-life-how-not-to-outlive-your-assets.html
Female Baby Boomers are Even Less
Prepared for Retirement
Additional Savings Needed to Retire at 65
45-year-old woman
$268
45-year-old man
$212
$0
$50
$100
$150
$200
$250
$300
(In Thousands)
Source: Bloomberg Business—http://www.bloomberg.com/news/articles/2015-09-15/here-s-how-wide-the-retirement-gap-is-between-men-and-women?
cmpid=BBD091515_BIZ
Women are More Successful Investors
1/3 of women with incomes of $200,000 or
more “often” or “sometimes” fear losing all of their
money and becoming homeless (2013 Allianz
study).
Women are less likely to
engage in risky day trading or
invest entirely in stocks.
Women have a higher
median return than men.
Source: http://money.cnn.com/2015/02/19/investing/investing-women-men/
7 11/4/15 Women Are Giving More Than Men
American
households headed
by single females
give 57% more
than those
headed by males.
In almost every
income bracket,
women give more
than men.
Source: Women’s Philanthropy Institute http://fortune.com/2014/10/20/dispelling-myths-about-women-and-charitable-giving/
Women Are Giving Differently
Than Men
Women are more
likely to give to
almost every
charitable
subsector, with
some exceptions
including sports
and adult
recreation.
Women tend to
spread giving
across more
organizations,
while men
concentrate giving.
Source: Women’s Philanthropy Institute https://philanthropy.iupui.edu/news-events/news-item.html?id=174
Women and Philanthropy Lesson:
Women Rule
8 11/4/15 Changing Giving Patterns
Individual Giving as a Percentage
of Disposable Income Remains
Relatively Constant
Giving as a % of Disposable Personal Income (DPI)
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Source: Giving USA 2014
Giving by Bequest is Steadily
Increasing
Giving by Bequest
(in billions of inflation-adjusted dollars)
40
35
30
25
20
15
10
5
0
9 11/4/15 Giving to Religion is Becoming
Stagnant
Giving to Religious Organizations
140
120
100
80
60
40
20
0
Giving to International Affairs
Organizations is in Decline
Giving to International Affairs
25
20
15
10
5
0
Giving to Education is Increasing
Giving to Education
60
50
40
30
20
10
0
10 11/4/15 Giving to Public Society Benefit
Organizations is Increasing
Giving to Public Society Benefit
(in billions of inflation adjusted dollars)
30
25
20
15
10
5
0
The Shift in Gift Pyramids
Today’s pyramids are looking more and more
like a steeple, with a handful of top constituents
driving campaign goals.
Baby Boomers are Active on
Social Media
11 11/4/15 Changing Giving Patterns Lesson:
The Times They
Are A-Changin’
Permanent Charitable Capital
Family Foundations Are on the Rise
Overall
foundation giving
is expected to
grow a few points
ahead of inflation,
and independent
and family
foundations are
expected to show
an even higher
rate of growth.
46.7%
of giving by all foundations is
by family foundations
($25.22 billion).
12 11/4/15 Foundation Growth in Minnesota
Total Number of Foundations in Minnesota
by Foundation Type, from 2002 to 2013
Source: Giving in Minnesota 2014
Foundation Growth in Minnesota
Total Giving of Foundations in Minnesota
by Foundation Type, from 2002 to 2013
Source: Giving in Minnesota 2014
National Donor Advised Funds Are
Growing in Number
Number of Donor-Advised Fund Accounts
100,000
217,367
192,378
184,364
180,393
174,466
150,000
161,941
200,000
205,662
250,000
50,000
0
2007
2008
2009
2010
2011
2012
2013
Source: http://www.nptrust.org/daf-report/recent-growth.html
13 11/4/15 And Donor-Advised Funds are
Increasing in Size
Average Size of Donor-Advised Fund Accounts
218,054
198,344
182,254
100,000
162,473
150,000
197,390
200,000
176,592
250,000
247,217
300,000
50,000
0
2007
2008
2009
2010
2011
2012
2013
Source: http://www.nptrust.org/daf-report/recent-growth.html
Permanent Charitable Capital Lesson:
New Players
Summary
1 Focus
2 Greatest Gen
Boomers
3 Women Rule
4 The Times They Are A-Changin’
5 New Players
14 11/4/15 Giving by Bequest has been Steadily
Increasing Since the ’70s
Giving by Bequest
(in billions of current dollars)
35
30
25
20
15
10
5
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
143317:APB/gmc:110215,
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The Changing Face of American Philanthropy. Winners and Losers

Transcription

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