Wealthy young people more likely to rate changing the world as business priority
More than two out of five (42%) of wealthy entrepreneurs aged under 30 say that, as shareholders of a company, they would regard campaigning for important social issues as at least as important as maximising profit, according to a new report from the Charities Aid Foundation. Only 26% of over 45s agreed.
Catalysts for Change found 71% of wealthy people under 30 rate social responsibility as an important influence on their investment decisions, compared with 63% of over 45s. It also found that 65% of wealthy people under 30s rated charitable activity as an important part of their wealth creation, compared with 58% of over 45s.
The report explores venture philanthropy, impact investing and social entrepreneurship to show a range of responses to social challenges big and small, global and local. Contributions from Jason Franklin of Bolder Giving, venture philanthropy pioneer Stephen Dawson, and Ben Goldsmith, a partner at sustainable investor Wheb Group and chair of his family’s foundation, sit alongside the stories of young social entrepreneurs and activists.
Paul Rees, executive director of the Charities Aid Foundation, said: “It’s fantastic when people use their wealth as a force for good. We need a new generation of philanthropists to act as role models and show what can be achieved when you support others and make a real impact.
“In these tough economic times it is more important than ever to back charities and ensure we build a long term culture of giving in Britain.”
The findings are based on global surveys by the Scorpio Partnership, who surveyed people with an average net worth of more than £1.5m in 98 countries, including the UK, USA, Australia, Canada, Singapore and Malaysia. Scorpio’s ongoing research into the giving motivations and habits of wealthy donors around the world looked at money attitudes of those under 30 and those over 45.
Catalysts for Change is the second in a series on the attitudes of a new generation of wealthy individuals. Research published by CAF last year found that the next generation of wealthy young philanthropists want to use their money to bridge the gap between rich and poor.