Feelings of financial insecurity and a lack of duty to society, family or religious beliefs are two of the critical barriers to giving according to a new white paper commissioned by Barclays Wealth and undertaken by Ledbury Research.

The findings from a survey of 500 high net worth individuals (HNWIs) in the UK and US aims to understand what is holding back the wealthy from giving more to charity.

Emma Turner, head of client philanthropy at Barclays Wealth, commenting on the research, says, “High net worth individuals today are a very diverse community of people, having accrued their wealth through a huge variety of different sources, from technology to inheritance. However, the findings of this report show that despite these differences they are predominantly motivated by values which are deeply rooted and traditional in nature, like family and religion. As charities seek to understand how they can work more closely with this complex group, it is crucial that they understand what is stopping them from giving, as much as they focus on what is motivating them to give.”

The good news revealed by the report is that charitable activity is nearly universal among the wealthy with 97% giving in some form.

However, despite widespread involvement, only a third will donate more than £10,000 a year – less than one per cent of their net worth – says the report.

The starting point in understanding the barriers to giving is understanding why people give, says the report, and it cites the three most  popular motivations for giving among HNWIs as being able to  ‘afford to’, ‘wanting to give back to the community’ and ‘for personal fulfilment’.

The research also reveals internal motivators such as ‘religious beliefs’, ‘legacy of parents’ and a ‘responsibility to share wealth’ as the critical drivers to high value gifting, noting that these are strongly tied to a ‘sense of duty’.

Once the wealthy have decided on a general cause, it is efficiency and the amount spent on administration which are the two most important factors when selecting an individual charity (89% and 88% respectively).

The performance of the economy is seen as both a barrier and a driver to giving among HNWIs, the research shows.  Though 23% of the wealthy decreased their donations in 2009, says the report, with many giving time instead of money (20%), 49% said they were planning to give the same amount as last year and 36% were planning to increase donations. The research found evidence that the economic downturn had galvanised many; 35% of the wealthy are “more passionate in supporting charitable causes in an economic downturn, when they are struggling for funds.”

Independent philanthropy advisor and author of Why Rich People Give Theresa Lloyd, commenting on the research, says, “This research confirms some of the findings of Why Rich People Give, particularly as it concerns feelings of financial insecurity, which may be quite unrelated to actual levels of wealth - all interviewees agreed that their sentiments on this were to some extent irrational.

“The Barclays Wealth research also reasserts the huge importantce of the influence of family values and religious and cultural traditions. However, it is a disappointment and a challenge to those of us who wish to encourage a stronger culture of philanthropy to see that in spite of the sometimes very significant levels of wealth only one-third are donating more than £10,000 a year.

“In WRPG we found that belief in the cause and confidence that the donation will make a significant difference are key motivators. Too many of those I interviewed, and have worked with subsequently, have ‘horror stories’ of appallingly managed relationships with those to whom they have given significant sums. To me this suggests that a crucial element in breaking down barriers to giving is for those seeking funding to be far better at understanding the marketplace of major donors, at encouraging and nurturing belief in the importance of their cause and demonstrating the impact of philanthropic investment.

“With the involvement that follows successful stewardship will come far greater understanding of how the charity works, and why ‘the amount spent on administration’ should not be one of the most important factors in evaluating the effectiveness of an individual charity.”

For more information on Barriers to Giving, email barclayswealthcommunications@barclayswealth.com