Altrata Report Reveals Ultra-Wealthy Dominate Global Philanthropy

The Altrata Report unveils the significant role of ultra-wealthy donors in shaping philanthropy.

A new report by Altrata has illuminated the changing dynamics of global philanthropy, revealing a significant concentration of charitable donations among ultra-high-net-worth individuals. This shift poses new challenges and opportunities for the nonprofit sector, which traditionally relies on a broader donor base.

Key Findings of the Altrata Report

According to the Altrata study, individuals worth $30 million or more now account for a staggering 38% of all individual giving worldwide. While comprising just 400,000 people, this group wields substantial influence over the philanthropic landscape. The report further emphasizes the role of billionaires who, although they represent only 0.00004% of the global population, contribute 8% of individual philanthropic donations​​.

The ultra-wealthy not only contribute significantly to philanthropy but also shape the future of charitable giving.

Implications for Nonprofit Strategy

The concentration of wealth and the corresponding philanthropic power have prompted nonprofits to pivot their fundraising strategies significantly. Organizations are increasingly targeting these mega-donors, adapting to their preferences and the causes they support. While the general public frequently supports religious organizations, ultra-wealthy donors prioritize education, arts and culture, and health-related causes​​.

Nonprofits Rethinking Engagement and Fundraising

The reliance on a small pool of wealthy donors introduces both risk and opportunity for nonprofits. The volatility of these large donations, often tied to the stock market's performance, requires organizations to be more adaptive and forward-thinking. Many are now focusing on securing large, unrestricted gifts that provide them the flexibility to allocate resources most effectively​​.

Emerging Trends and Future Outlook

The Altrata report also highlights a notable demographic trend among mega-donors: a majority are over 70 and predominantly male, although women are increasingly making their mark in philanthropy. Almost one in five ultra-high-net-worth individuals owns a private foundation, and many prefer giving through structured channels like donor-advised funds, which allow them more control over how their donations are used​​.

As the philanthropic sector continues to evolve under these new dynamics, nonprofits face the dual challenge of catering to the interests of a concentrated group of wealthy donors while also striving to broaden their donor base to ensure long-term sustainability and resilience.