Why People Give

Contrary to what many ancient philosophers thought recent research suggests that generosity is hard wired into very DNA. Human beings are made to be generous. Generosity has its roots not just in our individual development but also in evolutionary history.

Selfless acts, putting the welfare of others before your own can be found throughout the animal kingdom. Vampire bats are known to regurgitate blood to feed the offspring of other bats who can’t feed their own young. Nature abounds with examples of animals acting selflessly in the interests of the pack.

Acting generously has been demonstrated to activate the same reward pathways in the human brain that are activated by food and sex. Giving and helping others makes you feel good. Supporting others is associated with better health in older people and volunteering has been shown to extend life. Other studies have shown that people are happier when spending money on others than on themselves.

Not all people are equally generous. This depends on their personal empathy, their values, morals and sense of identity but the good news is that we are designed to be philanthropic. People are also driven by different motives to give.

One of the best book written on this subject is “The Seven Faces of Philanthropy” by Russ Alan Prince and Karen Maru File.  The book is based on research carried out in the USA but the types of philanthropists that it recognises are universal.

The largest group are Communitarians. People who give money and time because to them it makes sense. They make up the largest grouping of all major donors. Typically they are business owners and they tend to support local causes. They like to get involves in causes themselves and often appreciate recognition for their work.

The second largest group are the Devout. They give because it is God’s will. They are motivated by religious reasons and most of their donations are channelled through religious organisations and programs. Charities like Christian Aid and The Bible Society which have a religious motivation  benefit form this group. The Devout tend to support organisations on congregational lines and to trust the organisations they give to.

The next group are the Investors. They give with one eye on the cause and one eye on tax planning and the smooth transfer on family businesses to the next generation.  They apply the same scrutiny to the charities to which they give as they do to their other investments and expect the charities they support to be well run. They are also interested in the concepts of social investment and impact philanthropy.

The fourth group are the Socialites. They do good because it’s fun and their decisions are driven by peer-pressure. Philanthropy is a part of their social capital. This group are great at organising fundraising events.

Next, the Altruist. The classic selfless donor who doesn’t want any recognition. They quietly support the causes they believe in and are the source of many surprise legacies. They are self motivated and know what they want to support.

The sixth group are Repayers. Typically they have benefitted from, say a school, a university, a hospital treatment or from some other institution and they want to continue to support it so others can benefit. They are big supporters of university endowments and medical research organisations.

Finally the Dynast. They like to do good because it is a family tradition. Dynasts tend to be wealthier in the first place, often having inherited much of their wealth. They will frequently distribute their funds through a family foundation and tend to be quite purposeful in their giving.

No one group is better, or more generous than any other. The important thing is that they give. From my perspective as a philanthropy adviser it is important to understand what drives people’s giving as it helps me to understand how they may be wanting to benefit.