The rising influence of female philanthropy

Women in philanthropy is nothing new. Throughout history, women have joined together to solve problems in society, whether this was helping soldiers’ families during times of war, aiding widows and children or helping the plight of refugees. Although many people perceive that philanthropy is the work of visible rich, white men like Bill Gates, John Rockefeller and the like, philanthropy has in fact always been comprised of large and small financial contributions together with contributions of time and talent from people across all the different demographics – men and women alike.

Historically, being a philanthropist was a “respectable” occupation for women, although the money employed in this philanthropy was generally that belonging to their family or their husband. Women were often thought of as invisible. However, according to The Women’s Philanthropy Institute at Indiana University, philanthropy was often a way for them to make change behind the scenes: “Women in the last 300 years used creative, clever, and canny means to effect social change during times when they could not vote, hold public office, or manage property they may have brought into a marriage.”

Increasing numbers of women are forming giving circles to support causes in their local community after realising that pooling their money has a greater impact.

Today, the distribution of wealth is changing, and female billionaires are at an all-time high. Indeed, on the Forbes’ list of billionaires this year, there were 242 women billionaires compared to just 91 in the list just nine years previously – a record number, albeit still far behind their male counterparts. Nevertheless, this shift is ensuring that the face of philanthropy is changing. And it is not just the increasing numbers of the world’s super-rich females bringing about this change; women in general are becoming wealthier in their own right. In the past 30 years, their median income has risen by 60 percent, thus making them more independent and cementing them as important donors in the world of philanthropy. In fact, research shows that women, regardless of wealth, outpace men of a comparative income level in their charitable giving. Statistics published in Forbes show that women give almost twice as much of their wealth away as men; 3.5 percent and 1.8 percent respectively. Another strong trend is that females are much more likely than men to support women’s and girls’ causes – making their donations crucial in making long-term systemic changes in these fields. Of course, many donors of either sex give to these causes as part of a broader philanthropic portfolio, but traditionally throughout history, women have been attracted to solving issues that disproportionately affect their own sex. With today’s #MeToo and #TimesUp movements, these causes are more visible than ever and with research demonstrating that women are in general more emotionally attached to the causes they engage in, they are increasingly becoming involved in funds and foundations directed towards female issues.

And “involved” is the operative word. Women often want to do more than simply write a cheque and sit back. According to the All in for Women & Girls report published by the IUPUI Women’s Philanthropy Institute this year, females, in comparison to general donors – especially those committed to women’s causes – are more motivated to give by being on the board or volunteering for an organisation. Demonstrating this, there are those that suggest adding to philanthropy’s widely recognised acronyms of the three Ts of time, talent, and treasure with another T; that of testimony to reflect how donors support the causes they give to, not just in financial terms, but through their time and expertise. As well as this propensity for a more holistic approach to giving, All in for Women & Girls also identifies that women’s fund and foundation donors are likely to have donated to these initiatives for a longer period of time and as such can be considered loyal to their causes. There is no denying that management studies have continuously shown that women are more inclined to be cooperative in work teams, and the same theory seems to be applied in the realms of philanthropy. Collaborative giving is a strong characteristic of female philanthropy. The Women Moving Millions initiative founded in 2007, has inspired over 320 women who have made a minimum one-milliondollar commitment to the foundation to benefit female causes worldwide.

In fact, since the 1970s, this trend of “giving circles” has been growing exponentially, and by 2016 nearly half of the giving circles in the United States were women-only groups. Allison Fine, author and founder and CEO of Network of Elected Women is of the opinion that giving circles “are particularly well suited to women, because they are both social and philanthropic.” And this trend has trickled down to those who don’t have the capacity to give away a million dollars. Indiana University’s studies show that in fact those with a lower income status, tend to donate more of their net worth to charity than those of a higher income. In this way, increasing numbers are forming giving circles to support causes in their local community after realising that pooling their money has a greater impact. And it’s not all results driven either. There is evidence that women may be more comfortable than men with intangible results. Of course, creating impact is their overall priority, but a woman’s personal engagement with a foundation or charity is often how they truly measure their results. With women giving more, engaging more and for longer periods of time, there is no mystery why experts are advising that a women-focused strategy should be woven into all fundraising and philanthropic efforts, both large and small.