Engaging Women
Myths and Facts About
Women as Philanthropists

By Barbara O�Hearne
Vice President
Midwest Region

Eager to know the most recent thinking about women as philanthropists? Read on. With due recognition to the distinguished research staff at the Center on Philanthropy at Indiana University, and authors Deborah Hirt, Maria Mandel and Melanie McKitrick, I will attempt to report on their findings. The well-documented report published by Giving USA provides useful information about women�s income and wealth, and ways �to engage women more effectively as advocates, volunteers and donors.�

MYTH BUSTERS

While myths abound about women and giving, current research and examples have �busted� some of these myths.

Myth: Women prefer anonymity for a large gift. The common myth is that men give to name something and women will give only after they inherit wealth, or not at all.

The Facts: In a 2009 Fidelity Charitable Gift Fund study about giving by high-income women, (those with an annual household income of $150,000) 58 percent disagreed when asked if they would desire anonymity. Myth busted! Boomer women want recognition, while Gen Xers (women born between 1965 and 1976) want recognition only if it benefits the organization.

Myth: Women do not give large gifts.

The Facts: Darla Moore School of Business at the University of South Carolina was named in honor of $25 million gift from Ms. Moore, who has given an additional $45 million in matching gifts to the school. In 2008-2009, more than 100 women gave a total of $141 million as part of the Women Moving Millions Campaign for women�s funds nationally and internationally. The minimum contribution was $1 million. Myth busted!

Myth: Women�s giving is emotional, rather than business-focused.

The Facts: A 2008 Center on Philanthropy study of worldwide donors who gave large gifts to United Way showed that women value tax benefits, along with impact and effectiveness of their gifts.

THE DATA

Women�s income and wealth

• In 2004, 43 percent of this nation�s wealth was held by women with assets of $1.5 million or more.
• In 2008, there were an estimated 10.1 million privately held, women-owned firms, generating $1.9 trillion in annual sales and employing 13 million people.
• Women made up 60 percent percent of the workforce in 2009 and received 60 percent of all degrees awarded in 2008-09.
• Women�s median income has increased 70 percent over the past 30 years, while men�s median income increased only slightly. Remember, men make more than women as a general rule.
• Women are responsible for 83 percent of all consumer expenditures.
• Unmarried Americans make up 43 percent of the U.S. population ages 18 and older. Women comprise 53 percent of that group.

Women and Giving

• Women are more likely to spread what they give across a wide range of charities. Men tend to concentrate on a few charities. Women are more likely to give to human services, children�s causes, and health-related charities.
• The Million Dollar List�, based on reported gifts covered in the media, indicates women are less likely than men to give to foundations. Women trail men in giving to foundations by as much as 20 percent.
• After controlling for income and education, single women are more likely to give than are single men. Giving to religion is noteworthy, with 35.9 percent of women giving, in contrast to 25.2 percent of men.

Motivations for Giving

Research about motivations for giving followed two approaches. In the first, respondents were asked about their motives for giving. The second was an experiential approach to observe behaviors and decision making. Here is what the research revealed women�s motivations for giving:

• Women reported higher levels of empathy across generations.
• They want to effect transformation and see results.
• There is a strong link between volunteering and giving, and feeling connected to the cause and the community.
• The higher education level a woman attains, the more likely is her desire to effect change in social conditions through volunteer work.
• American women feel a responsibility to address and solve the world�s problems.

Peer Pressure and Gender

Because of their relational nature, the giving context is important. Women who join giving circles are likely to give more.

• Results of a study of 394 public radio supporters, among other studies, show that women are less influenced by peer pressure than men when it comes to giving.
• Women use social information when deciding where to give.
• Women care about the quality of information they receive. It must be accurate and up-to-date.

Information Networks

Women rely on social networks of friends and family for charitable giving. A 2007 study of 1,000 high-income women ($1,000 in giving and $136,000 annual income) found that they cited among the influences on their giving, children (33 percent), representatives of faith-based institutions (29 percent), members of extended families (24 percent), and friends (23 percent).

Want to Reach Women? Develop Your Online Social Networking

The fastest growing segment of Facebook users are over 55, and women of all ages use Facebook more than men. Being wired is not gender-driven as much as it is generational. Seventy-four percent of 18- to 39-year-old donors use charities� websites to look for information, where only 26 percent of donors ages 59 and older rely on websites for charity information.

But do not assume that older women are not tapped in. I recall in the early days of the Internet a delightful woman, well into her 80s, taking an executive director to task for assuming she did not know anything about technology. She politely�and humorously�informed the director that she was in contact with her children and grandchildren on the internet weekly.

Decision Making

When couples bargain over giving, the amount increases by 3 to 7 percent � and that decision is strongly influenced by the wife.

Charitable gift decision making among married couples traditionally was influenced by two factors � education level and which spouse is the primary breadwinner. This is changing. The education level is still important, but who is the primary earner is becoming less important. If the wife decides, the giving is spread among more organizations.

The Ultimate Gift

Given the conventional wisdom that women will outlive men, women will be making the decisions about charitable giving in the years to come. The Boston College Center on Wealth and Philanthropy estimates that women will make up 70 percent of the intergenerational wealth transfer between now and 2050. Read that again, and think about what this really means to your organization: Are you talking about these kinds of facts and their implications during board and committee meetings? If not, why not?

Organizations that want to ask donors to consider bequests should ask women and men equally. Reflecting, again, on gender differences in giving via wills, indicates women�s interest in mission impact and reciprocity are motivations for their charitable giving.

Carrying on the Family Tradition

Women more likely than men believe that their children should continue �our tradition of giving.� Including donors and their children in organizations� events is important. Letting donors know an organization provides volunteer opportunities for high school and college students is also important.

I want to share an example of teenage girls being involved in philanthropy. The Women�s Foundation of Greater Kansas City, through a generous grant from Martha and John Humphreys, is teaching teenage girls to be philanthropists through the Rachael Alexandra Girls Grant Project. The donors wanted their gift to have a �long-term impact on teen girls and to secure the future of philanthropy for women�s causes in Kansas City.�

The girls are recruited and trained in teambuilding, leadership and grant making. They learn about the need for women�s philanthropy, and the Foundation equips them with the tools and resources to make an impact. Using the knowledge and skills they gain, the girls write grant guidelines, a Request for Proposals, and make site visits. Grantmaking is focused on agencies that work with women and girls.

To date, the Foundation � and the young women who guide it � has made 46 grants totaling $117,480. Nearly 200 teenage girls have learned first-hand about philanthropy, had the chance to make a difference in the lives of women and girls in their community and, I would venture, feel more confident in their own lives.

For more information on women and giving, visit the Women's Philanthropy Institute at the Center on Philanthropy, University of Indiana.