Focus Financial Partners|UBS Financial Services Inc. Reports that Recovery Has Helped Charitable Giving in Valley
LAS VEGAS — UBS Wealth Management Americas https://www.ubs.com/us/en/wealth.html released its quarterly UBS Investor Watch report in November of 2014, “Doing Well At Doing Good,” which explores wealthy investors’ giving habits.
The study found that despite the effects of the Great Recession and the housing slump, the “giving gene” remains intact, and active, in Las Vegas and beyond.
The survey of 2,210 high-net-worth and affluent U.S. investors conducted Sept. 17-25, revealed that in the last decade, 36 percent of millionaires have increased their donations and that about 9 out of 10 millionaires engage in philanthropy annually.
The study found millionaires typically give 7 percent of their annual incomes to charity, and 52 percent plan to leave at least some of their wealth (28 percent on average) to charity when they die.
Furthermore, research shows, almost 4 in 10 millionaires have given at least $100,000 in their lifetimes and nearly three-quarters have given at least $25,000.
Russell W. Price, senior vice president and wealth management financial adviser for Focus Financial Partners|UBS Financial Services Inc. in Las Vegas https://financialservicesinc.ubs.com/team/focus/ said the valley’s economic recovery has stoked charitable giving.
“An analysis of Internal Revenue Service data conducted by the Chronicle of Philanthropy and reported by The Associated Press and Huffington Post, found that among U.S. states, Nevada had the fastest-growing rate of donations as a share of income, rising nearly 13 percent from 2006 to 2012,” Price said.
“As the economy continues to rebound, we are working with many of our.clients on their charitable giving strategies.”
https://www.huffingtonpost.com/2014/10/06/wealthy-charity-giving-greedy_n_5937100.html
Futhermore, the AP reported, Las Vegas, was the nation’s fastest-growing city in terms of generosity, rising 21 places since 2006 in a ranking of the country’s 50 largest urban areas.
The Chronicle study found Las Vegas Valley residents in 2012 gave 2.7 percent of their income to charity, a 15 percent increase over their giving rate in 2006, before the recession.
https://philanthropy.com/article/Changing-Demographics-Help/149121/
More clients have been coming in and looking for ways to do year-end giving,” Price said. “Some are also planning for 2015. I think people are just feeling better about the economy and want to give back.”
UBS Wealth Management Americas Client Strategy Officer Paula Polito echoed Price’s sentiment.
“While it is clear that America truly has the ‘giving gene,’ the whole point of giving is to make an impact; yet few millionaires believe they are actually doing so. The majority are engaged in reactive, ‘checkbook philanthropy’ that is not strategic and not part of a broader financial plan,” Polito said.
“What we found is that investors with over $5 million are more satisfied and effective givers, but not because of their ability to give a high-dollar amount; rather, it’s because of the strategic planning they put into their philanthropic giving.”
https://markets.on.nytimes.com/research/stocks/news/press_release.asp?doc
GENERATION GAP
UBS Investor Watch (November 2014) found that high-net-worth and affluent investors donate most frequently to organizations helping the less fortunate (55 percent in the last year); these donations support religious organizations (42 percent) and fighting diseases (41 percent).
Older generations (baby boomers / World War II Generation), tend to give more to traditional institutions, the survey found, such as their colleges and universities or religious organizations. Younger generations (Generation X / millennials), meanwhile, gravitate toward practical-outcome causes, such as fighting diseases or helping children.
Millennials, the survey found, often cite passion for causes as motivating their philanthropy (38 percent for millennials versus 32 percent for boomers), while older generations more frequently cite duty (70 percent for boomers versus 48 percent for millennials).
Millennials are likelier than any other generation to have given to a new organization in the last year, and to respond to, and make, social media requests for donations.
WOMEN LEAD THE WAY
The research showed women deem philanthropy an important personal goal. Almost a third of women (32 percent) have engaged in values-based investing (versus 20 percent of men), the study found, and women are likelier than men to choose careers based on social values (26 percent versus 16 percent of men).
Furthermore, the study found, women are likelier to volunteer time (67 percent of women versus 57 percent of men) and make household decisions on which charities to support.
“Millennials’ and women’s passion for, and commitment to, philanthropy bodes well for the future,” said Sameer Aurora, head of client strategy at UBS Wealth Management Americas. “Both groups are increasing their wealth through earnings and inheritance. According to industry studies, women are expected to control two-thirds of wealth in the U.S. by 2030. (This) will undoubtedly lead to greater philanthropic giving and values-based investing.
“With more active planning, women and millennials will have an even stronger impact on society,” Aurora said, “(and will) improve their own sense of contribution toward a better world.”
SENSE OF SATISFACTION
The study found millionaires usually volunteer for the same sorts of reasons they donate money —66 percent deemed donating time just as valuable to a charitable organization as donating money.
But volunteering tended to evoke stronger satisfaction. UBS Investor Watch found that 50 percent of investors feel highly satisfied with their impact on their communities when they volunteer instead or solely donating money (26 percent). Consequently, 65 percent of volunteers do so at least once a month, while more than a quarter (28 percent) volunteer once a week.
Read the full report here: www.ubs.com/investorwatch <https://www.ubs.com/investorwatch>
Focus Financial Partners <https://financialservicesinc.ubs.com/team/focus/> is a wealth management group within UBS Financial Services, Inc. in Las Vegas. Focus Financial Partners helps provide financial solutions to high-net-worth individuals and families that are experiencing business and life transitions. The group is headed by Michael Chudd, Sam Mineo and Russell Price – Financial Advisors with more than 50 years of combined experience in key wealth management areas such as investment management, financial, tax and estate planning strategies.
UBS Wealth Management Americas provides advice-based relationships through financial advisers who deliver a fully integrated set of products and services specifically designed to address the needs of ultrahigh-net-worth, high-net-worth and core affluent individuals and families. It includes the Wealth Management U.S. business, the domestic Canadian business and the international business booked in the United States.
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Michael Chudd, Sam Mineo, and Russell Price are Financial Advisors with UBS Financial Services Inc. Any information presented is general in nature and not intended to provide individually tailored investment advice. Investing involves risks and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of UBS Financial Services Inc. Neither UBS Financial Services Inc. nor its employees (including its Financial Advisors) provide tax or legal advice. You should consult with your legal counsel and/or your accountant or tax professional regarding the legal or tax implications of a particular suggestion, strategy or investment, including any estate planning strategies, before you invest or implement.
