16 September 2014
Philanthropists whose cultural heritage lies
outside of the UK are more likely to be personally involved with
the charitable causes they support, says a new report released
today by the Charities Aid Foundation.
They are also more likely to be open to
exploring new routes of support such as social investment - the use
of money to achieve a social impact and financial return - compared
to those who identify more with a British heritage.
The report also identifies a huge opportunity
for growth as, over time, diaspora donors in the UK could increase
by up to ten times their lifetime give.
The study, International Giving,
looks at how the cultural identity of donors in the UK affects
their engagement with charities, specifically those of diaspora who
have their roots in other countries around the world.
It compares the outlook of those who identify
their origins in the Indian subcontinent or the Asia Pacific
region, with those who identify more strongly with a British
heritage.
Social investment makes up 11% of the
philanthropic activity of those from the Indian subcontinent,
versus 6% for those from Asia Pacific, and just 4.6% for those
identifying more strongly with a British heritage.
When asked how much of their total investment
portfolio is ‘social’ versus ‘traditional’, those from the Indian
subcontinent indicate as much as 36%. By contrast, those who
identify more strongly with a British heritage indicate their
portfolios include 19% ‘social’ investment.
The findings are based on a sample of 1,000
UK-based wealthy donors, who took part in research at the end of
2013 for Charities Aid Foundation (CAF). Of the total, roughly
one-quarter identified as being of Indian subcontinent or Asia
Pacific origin.
David Stead, Executive Director of
Philanthropy and Development at Charities Aid Foundation, said:
“Our research shows that cultural heritage may inspire a passion to
change lives in the countries in which individuals have their
roots.
“The diaspora communities from these regions
often share not just a cultural heritage, but a social awareness
and an empathy with the challenges of the widening gap between rich
and poor.
“However, it is the access to innovation in
the UK that is enabling these individuals to do some really
exciting things.”
Find out more and request a free copy of the
report at www.cafonline.org/internationalgiving
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