BOSTON GLOBE: WEALTH TRANSFER
On Sunday March 03, 2002, the Boston Sunday Globe's
Big Idea page focused on SWRI's research on wealth transfer.
Long-time SWRI funder, Thomas B. Murphy, talks about
what he has done with his wealth.
SWRI Director, Paul Schervish, discusses the new
philanthropists and the implications of the forthcoming
$41 trillion wealth transfer for philanthropy.
Thomas B. Murphy's son, Robert L. Murphy, provides
the perspective of the younger generation on inherited
wealth and values.
Read all three articles
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Good Morning
I am pleased to send you the first issue
of a periodic update on our research at the
Social Welfare Research Institute on wealth
and philanthropy. The title of the newsletter,
"Wealth and the Commonwealth," captures the
focus of our work: the relationship between
private financial wherewithal and care for the
needs of others. The subtitle, "Research on
Cultural Life in an Age of Affluence," expresses
our belief that increases in wealth and standard
of living are changing the spiritual terrain
in which people live, understand who they are,
and chart how they hope to be effective with
their time, skills, and riches.
This issue focuses on the findings from a
survey of 112 wealth holders worth $5 million
or more and presents some insight into "The
Mind of the Millionaire." We hope "Wealth and
the Commonwealth" will help provide some added
meaning and practical benefit for you in your
good work. Paul Schervish, Director, SWRI
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FEATURED RESEARCH: THE MIND OF THE MILLIONAIRE
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"Few subjects arouse more widespread discussion
than the motives, mental processes, and behavior
of the rich," wrote Albert Atwood in 1926. Fascination
with and opinion about the wealthy have never
gone out of style. In 1998, with Deutsche Bank
Private Banking, we conducted a survey of 112
wealth holders worth $5 million and more. In
this issue learn more from our report "The Mind
of the Millionaire" about what respondents told
us about their volunteering, their charitable
giving, their education of their children about
wealth, and their estate-planning.
Other topics covered by the complete report
include the source of the respondents' wealth,
feelings of financial security, the freedoms
afforded by wealth, the demographic characteristics
of the respondents, and the survey methodology.
Download "The Mind of the Millionaire"
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Findings: Volunteering by the Wealthy
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 Almost
all the respondents in the study (92%) have
volunteered their time to charitable or political
causes during the previous three years. Most
of the respondents (86%) currently volunteer
at least one hour in an average month in these
activities. The amount of time respondents spend
on these activities in an average month ranges
from 1 to 100 hours with a median of 10 hours
and an average of 15 hours per month or 180
hours per year.
Read complete section on volunteering
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Findings: Charitable Giving by the Wealthy
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 The
average annual amount of contributions to charitable
and political causes was $1.2 million per family
in 1997, or an average of 22% of their family
income. Of this, only $12,000 on average was
given to political causes, parties, or candidates.
The amounts contributed range from $1,700 (0.1%
of income) to $36.1 million (481% of income).
The largest amounts were donated to trusts,
gift funds, or foundations, which on average
received $750,000.
Read more about charitable contributions from
the study
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Findings: Children and Wealth
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 97%
of respondents in the study report that they
are or were consciously active in teaching their
family values to their children. Respondents
mentioned a variety of activities which could
be grouped into three categories (1) frugal
financial management, such as earning spending
money and avoiding materialism; (2) the dispositions
of humility and responsibility, such as realizing
that wealth entails a measure of good fortune
and blessing and requires special responsibilities;
and (3) philanthropic involvements, such as
bringing children into their parents' philanthropy
and encouraging, or requiring, their children
to carry out giving and volunteering.
More findings on children and wealth
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Findings: Estate Planning
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 89%
of the survey respondents have a written estate
plan. On average, they expect that 37% of their
estate will go to taxes, 46% to heirs, and 16%
to charitable organizations. If they could modify
this distribution, they would prefer that 9%
go to taxes, 65% to heirs, and 26% to charitable
organizations. In moving to their preferred
distribution, wealth holders would divide the
tax savings in a ratio of 2-to-1 between heirs
and charities.
Learn more about estate planning by the wealthy
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REFER A FRIEND OR COLLEAGUE
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 Do
you know anyone else who might be interested
in receiving our research on wealth and philanthropy?
Please feel free to forward "Wealth and the
Commonwealth" to them. They can also sign up
for our newsletter on our homepage at http://www.bc.edu/swri
Please be assured that we will not share
your information with any other organization.
Sign up for Newsletter
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