There is nothing stingy about the very rich
DESPITE the difficult economic environment, some of the super-rich have not stopped giving back.
Philanthropic acts by the rich took a slight hit last year, proving high net worth individuals (HNWIs) are feeling the pinch.
Nedbank Private Wealth’s second Giving Report revealed that 91% of HNWIs gave money, time or goods last year, slightly down from 94% in 2010.
The report is conducted every two years.
Nedbank’s philanthropy specialist, Noxolo Hlongwane, said even though there may have been a drop, philanthropists were giving larger amounts than before.
The report shows that 41% of HNWIs gave more than R50 000 in cash and non-cash donations — a 35% increase compared to two years ago.
The most common reasons for the rich not giving, along with economic uncertainty, were negative experiences and ideology clashes.
Tax regulations also do not make it easy for the givers. Compared with countries such as the US, Canada, Australia and the UK, South Africa does not have adequate allowances for tax deductions to encourage greater philanthropic endeavours, according to Stonehage chairman Eddy Oblowitz.
“Perhaps the Davis commission on income tax, which has recently commenced its deliberations, will consider the importance of increasing the tax deductions which may be utilised for charitable giving,” he said.
Billionaires like mining magnate Patrice Motsepe have not felt any of these pressures.
He and his family became one the first signatories outside the US to join Warren Buffett’s and Bill Gates’s Giving Pledge campaign. It encourages billionaires to give most of their wealth to philanthropic causes.
The Motsepes have promised to give away half of the money generated by their assets to the country’s poor.
According to the Giving Report, South African HNWIs donated roughly R8-billion in cash, R5.1-billion in goods and services, and 7.9 million hours of their time in 2012.
It estimated that South Africa has some 300 000 HNWIs.
These include retired businessman Francios van Niekerk, regarded as one of the top five notable givers on the continent.
He reportedly gave away 70% of his equity in the company he founded, Mertech Group. His Mergon Foundation donates mainly to healthcare services for HIV/Aids patients, basic educational needs for preprimary children and recycling projects for South African youths.
Investment management company founder Allan Gray has also contributed enormously to social causes, especially in education. For more than three decades he has been able to donate about R1-billion to empowerment programmes and similar causes.
IT maverick Mark Shuttleworth gave away more than $25million last year for development and distribution of free open-source software, Ubuntu, through the Shuttleworth Foundation 2001.
Donald Gordon founded a healthcare charitable trust, the Donald Gordon Foundation, to benefit underprivileged communities across the country.
He single-handedly funded the establishment of the Donald Gordon Teaching Medical Centre at the University of the Witwatersrand.
His daughter, Wendy Appelbaum, has become one of the biggest philanthropists in the country. She donated millions to help establish the Gordon Institute of Business Science. She also funds the Donald Gordon Medical Centre.