SUMMARY
People who are generous with their time and money can make a big impact, helping to shift the dial on global challenges such as education. A new Citi GPS report highlights the latest trends.
The value of individual philanthropy to the global economy is difficult to measure and therefore woefully underestimated. But its impact is undeniable. In this report, we focus on aspects of individual giving that we can measure – time and money – and estimate that global individual giving reaches $1.3 trillion every year.
Individuals in the US give the most in absolute monetary terms and as a percentage of national output. Individuals are also generous with their time, particularly in Asia and the Pacific, the global leaders in volunteering. Although this form of giving is declining, hundreds of millions of people volunteer each month. Those volunteer hours – which would command a vast wage bill if remunerated – contribute significantly to the global economy.
In last year’s report, Perspectives on the Future of Giving, we argued that philanthropy is becoming more affluent and more institutional, with consequences for both society and individual nonprofits. The number of less educated and less affluent individuals giving is declining in many higher-income countries. This means fewer voices in aggregate, leaving more affluent voices to set society’s philanthropic agenda. As such, many potential beneficiaries are losing influence over initiatives intended to help them.
Many high- and ultra-high-net-worth individuals use foundations, considered institutional giving, as giving vehicles. And while institutional giving is on the rise in the US, the distinction between family foundations and individuals is becoming distorted. It may well be that a greater share of total giving should therefore be attributed to individuals – individual giving might be larger than our estimates.
While our estimates focus on monetary donations and volunteer time, philanthropy’s full contribution to the global economy encompasses much more. Direct giving between individuals, non-monetary donations, the socioeconomic value or “multiplier effect”, and the impact of aligning sustainable investments with philanthropic values all benefit the economy and make the world a better place.
Citi Private Bank’s Philanthropic Advisory team is delighted to partner for the fourth year with Citi Global Perspectives & Solutions (GPS) on the Philanthropy and the Global Economy series as we take stock of individual giving. We highlight causes common to individuals across countries as well as our thoughts on the multiplier effect of volunteerism and the potential multiplier of impact nonprofit organizations can make with $1 donated. We are especially grateful to Emily Tow for sharing her inspirational story and thoughtful advice from her journey as President of the Tow Foundation.
2023 report:
