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2008-08-25 12:52:00
Increasing numbers of business owners incorporate philanthropy into formal
financial planning; most rely on opinions of spouses and partners
ATLANTA, Aug. 25 // -- Charity truly begins at home,
according to a new survey. SunTrust Bank Private Wealth Management released
a study that finds families play a vital role when business owners seek to
match money and meaning. SunTrust surveyed more than 200 high net worth
business owners, whose companies have at least $10 million in annual
revenue, and determined that seven in ten (72%) business owners surveyed
participate with their family in charitable activities, and two in three
(65%) say their family decides together which causes or non-profit
organizations they support.
Moreover, sizable numbers (37%) say their family has supported the same
set of causes for more than a generation. One in five (21%) say their
family has gone so far as to establish a family foundation.
Doing Well by Doing Good: Business Owners Cite Top Charity Influencers
"The business owners we surveyed appear grounded in a circle of trust
that influences their philanthropic decisions," says Dave Johnston, Senior
Vice President, SunTrust Private Wealth Management. "Outside of satisfying
their own aspirations to do right by the community-at-large, these business
owners want validation from their family."
Significant others in the form of a spouse or partner (81%) topped
business owners' outside influencers. "Gut" feelings (76%) and
"friends/colleagues" (73%) are also cited by at least three in four
business owners in making charitable decisions.
To a lesser extent, business owners cited simply a "family member"
(67%) or a "business partner or associate" (67%) as influencers. Rounding
out the list of other factors were "my church, synagogue or mosque" (60%),
employees (52%), philanthropic literature (40%), information from
non-profit watchdogs (36%) and major media (28%).
A Lasting Legacy: Integrating Philanthropy Into Financial Plans
"Many of our business-owner clients are looking to put their personal
passions and family finances to work through establishing foundations,"
explained Johnston. "The days of one-time donations have given way to an
age of corporate social responsibility, marked by a more strategic,
consistent and targeted approach to overall giving."
Many of those surveyed (36%) have incorporated philanthropic giving
into their financial plan. Among them, a number have written non-profit
organizations into their will (53%), set up planned giving (45%) and
established a private or family foundation (44%).
Among those who have incorporated planned giving into their financial
plans, those who have started a business "from scratch" are more likely
than those who did not to have established a family foundation or private
foundation (57 percent versus 33 percent).
Non-Profit Know-How: Owners Harbor Healthy Skepticism, Crave Hands-On
Control
A common trait of philanthropic icons throughout modern history such as
Warren Buffett, Bill Gates, Irene Diamond, John D. Rockefeller and Andrew
Carnegie has been a desire to put great fortunes to maximum use for major,
vital causes. Business owners surveyed were consistent in wanting to
support tried-and-true charities and unyielding in wanting these
non-profits to exhibit fiscal discipline.
"Business owners are accustomed to looking at the bottom line in any
investment decision, and philanthropic giving is no different. We see more
business owners incorporating charitable giving into their formal financial
planning as a way to ensure a lasting legacy," explained Johnston. "In
doing so, they want to know about an organization's track record and how
successful the organization has been in achieving its goals. In addition to
heeding emotional cues, business owners need the reassurance of a sixth
sense: ROI."
More than half of those surveyed agree they support organizations that
are well established (65%) and/or that they have researched thoroughly
(62%).
About three in ten like to have hands-on control: 36 percent say they
give money only to organizations they are personally involved with, and 30
percent do not give money unless they have control over how it is spent.
Owners who started their own business from scratch also reported that they
want personal oversight over money they donate: 39 percent agree that they
are less likely to donate to charities if they "don't have control over how
the money is spent" (versus 23 percent of owners who did not start their
own business).
Survey Methodology
SunTrust Bank Private Wealth Management commissioned a survey by GfK
Roper Public Affairs to better understand the philanthropic habits of high
net worth business owners. The Bank's Commercial and Private Wealth
Management lines of business have formed a strategic partnership, through
the Business Owner Specialty Group, to address the unique business and
personal financial complexities faced by this elite group.
Virtually all the business owners who took part in the survey have made
a charitable donation personally (96%) and/or through their business (79%).
On average, in 2007 they report having donated over a quarter of a million
dollars to charitable causes through their businesses and $78,000
personally or as families.
An online survey was conducted to reach this elite group. In total, 202
business owners whose companies have at least $10 million in revenue were
surveyed. All interviews were self-administered using GfK's proprietary
web-based platform. Respondents were randomly drawn from GfK's online
panel. The survey was conducted in March, 2008.
About SunTrust
SunTrust Banks, Inc., (NYSE: STI) headquartered in Atlanta, is one of
the nation's largest banking organizations, serving a broad range of
consumer, commercial, corporate and institutional clients. As of June 30,
2008, SunTrust had total assets of $177.4 billion and total deposits of
$119.8 billion. The Company operates an extensive branch and ATM network
throughout the high-growth Southeast and Mid-Atlantic states and a full
array of technology-based, 24-hour delivery channels. The Company also
serves customers in selected markets nationally. Its primary businesses
include deposit, credit, trust and investment services. Through various
subsidiaries the Company provides mortgage banking, insurance, brokerage,
investment management, equipment leasing and capital markets services.
SunTrust's Internet address is suntrust.com .
About GfK Roper Public Affairs & Media
GfK Roper Public Affairs & Media is a division of GfK Custom Research
North America. The division specializes in customized public opinion
polling, media & communications research, and corporate reputation
measurement -- in the US and globally. In addition to delivering a broad
range of customized research studies, GfK Roper Public Affairs & Media
draws from GfK's syndicated consumer tracking services, GfK Roper
Reports(R) US and GfK Roper Reports(R) Worldwide, which monitor consumer
values, beliefs, attitudes and behaviors in the US and more than 25 other
countries.
Securities and Insurance Products Are not FDIC or any other Government
and Services Agency Insured
Are Not Bank Guaranteed May Lose Value
SunTrust Private Wealth Management Business Owner Specialty Group is a
marketing name used by SunTrust Banks, Inc. and the following affiliates:
Banking and trust products and services are provided by SunTrust Bank.
Securities, insurance (including annuities and certain life insurance
products) and other investment products and services are offered by
SunTrust Investment Services, Inc., a SEC registered broker/dealer and a
member of the FINRA and SIPC. Other insurance products and services are
offered by SunTrust Insurance Services, Inc., a licensed insurance agency.
Investment advisory products and services are offered by SunTrust
Investment Services, Inc., RidgeWorth Capital Management, Inc. (which may
do business as Trusco Capital Management) and its investment advisory
subsidiaries and GenSpring Family Offices, LLC (f/k/a Asset Management
Advisors, L.L.C.), investment advisers registered with the SEC. Mr.
Johnston is not affiliated with SunTrust Investment Services, Inc.
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