New Insights on High-Net-Worth Philanthropy

Hannah Shaw GroveAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

For high-net-worth (HNW) families, philanthropy is an ideal way to connect their passions to a charitable mission and work collaboratively across generations to build and preserve their legacies. But those missions became increasingly challenging to pursue last year amid a market downturn, geopolitical and economic uncertainty, and record-high inflation. My firm, Foundation Source, recently analyzed nearly 1,000 private foundations, revealing that while foundations gave at record-high levels in 2022, they experienced a 14.5% decline in foundation growth and a 31.5% drop in asset value.

While markets are showing signs of rebounding, underlying fundamentals remain mixed, which could have implications on giving for the remainder of the year. In fact, as you’re having conversations with clients about their end of year plans, it’s a great opportunity to review their progress, consider what may come in the year ahead, and talk through tools and strategies that can help them continue to make an impact with their philanthropy.