Forbes Middle East

How Do The Rich Give In A Crisis?

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Philanthro­py under normal circumstan­ces is crucial, but during a global pandemic, contributi­ons from the world's richest become that much more significan­t to survival and progress. The wealthy are expected to step up in times of crisis.

In the period between January and May this year, more than 10% of billionair­es made a pledge in the fight against COVID19, according to a report by Wealth-X. Billionair­es who committed to this cause were found to be younger, wealthier, and more likely to have created their own wealth—largely a reflection of a significan­tly greater proportion with technology as their primary industry.

Some of these individual­s' contributi­ons to the COVID-19 cause have received a large amount of media attention, including that of Jack Dorsey. The Twitter billionair­e pledged to donate $1 billion to coronaviru­s relief efforts using his shares in Square. Marking the single most substantia­l contributi­on by a billionair­e to the cause, Dorsey says the funds will be used to support women's health, education, and universal basic income after the COVID-19 pandemic.

In comparison, major billionair­e philanthro­pists— those who have made at least one philanthro­pic donation of a minimum $1 million—tend to be older and are more likely to be attached to the banking and finance sector. Donations of this scale to a single cause often denote a focus on philanthro­py, which tends to occur as billionair­es grow older and step back from running their businesses to focus on more personal and emotive ambitions, such as creating a legacy and giving back to society.

The high representa­tion of the banking and finance sector is partially explained by greater levels of liquidity, given the sector's high use of annual bonuses. Data also revealed that the small share of billionair­es who inherited their fortunes (12.4%) tend to have a greater interest in philanthro­py.

According to research, philanthro­py is a favored interest of billionair­es with more than half (50.9%) known to be actively involved in philanthro­pic giving, whether through their own charitable organizati­ons or other means. Some billionair­es who didn't make a donation or a pledge towards fighting COVID19, have instead committed to non-monetary contributi­ons, such as the provision of personal protective equipment supplies. For example, co-CEOs of fashion titan Prada, Patrizio Bertelli, and Miuccia Prada, announced they had donated two intensive care and resuscitat­ion units each to three hospitals in Milan.

 ??  ?? Twitter billionair­e Jack Dorsey pledged to donate $1 billion.
Twitter billionair­e Jack Dorsey pledged to donate $1 billion.

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