Bloomberg News
Sat, 26 May 2001, 7:35pm EDT

Gender and Philanthropy
By Jennifer Nelson

Do men and women view philanthropy differently? Without a doubt, concludes the report Survey of Wealth and Women, recently released by HNW, an Internet marketing- research firm in New York. HNW, in partnership with Harris Interactive, polled 1,024 adults with a household income of at least $150,000 and net assets (excluding primary residence) of $500,000 or more. According to the study, women tend to give to philanthropic causes to which they feel personally or emotionally connected, whereas men tend to think more with their wallets than their hearts, considering first and foremost the business impact of their donations. Moreover, the study notes, women tend to prefer donating to medical and community-based charities, whereas men favor supporting the arts, cultural groups, and political organizations. Men also tend to be somewhat more generous than women, the study says.

To discover whether financial advisers agree with this assessment, Wealth Manager did some informal polling of its own. We uncovered a variety of opinions not just about gender differences but also about why people give money to charity in the first place.

Nancy Langdon Jones, owner of NLJones in Upland, Calif., for example, tends to agree with HNW's conclusions that men and women have different views about philanthropy. About eight years ago, two of Jones's clients-urged by their tax accountant to consider donating to charity-visited Children's Hospital Los Angeles. As part of the tour, the couple, then in their early 70s, visited the Neonatal Intensive Care Unit, where they saw premature babies small enough to fit in the palms of their hands. "All the woman could see was that these babies needed help," says Jones. "She decided immediately that she wanted to give to the hospital. For her husband, it was more of a business decision. He wanted to know what the hospital was researching and what the tax implications of his donation would be."

As it turned out, the husband became as big a fan of the hospital as his wife was. The couple made an initial contribution, through a charitable remainder trust, of $100,000 of highly appreciated stock and have gradually increased their gift to more than $1 million, says Jones. They receive a 7 percent annual return from the trust, which the husband in particular appreciates. The wife volunteers as a candy striper at the hospital.

Stephen Hample, owner of Financial Planning Associates in Bozeman, Mont., however, argues that men and women both prefer to make gifts from the heart. Hample says that one of his male clients chose to make a sizable contribution to the American Red Cross, primarily because the Red Cross had helped him when he was in a POW camp in Japan during World War II.

Kathleen Day, a financial adviser in Miami, also finds that men and women both tend to focus on the emotional rewards that come with helping others. And she encourages clients to view philanthropy as a way to pass on a tradition of giving to their male and female children and grandchildren. In fact, about six months ago, Day changed the name of her firm from Kathleen Day & Associates to The Enrichment Group to reflect its focus on life planning, which includes helping clients give back to the community. Day helps clients set up donor-advised funds with as little as $5,000. Two of Day's clients, an elderly couple, plan to meet every Thanksgiving with their grandchildren, now 6 and 8 years old, to talk about what charities the family should donate money to. Among the possibilities: Ronald McDonald House Charities, Make-A-Wish Foundation, and the National Children's Leukemia Foundation. "They are very excited about it," she says. "It's a way to keep your family really close."

David Strege, principal of Syverson, Strege, Sandager & Co. in West Des Moines, Iowa, is another adviser who encourages all his clients-male and female-to pass on a philosophical legacy of giving to their children and grandchildren. With its Philanthropy in Lieu of Taxes (PILOT) program, his firm aims to increase the awareness of both men and women about the benefits of charitable giving. "Money is worthless until you turn it into something you enjoy or something that is a benefit to society," he says.

Not all advisers are so idealistic, however. George Weinstock, owner of Atrium Advisory Group in Paramus, N.J., says that some of his clients have set up private foundations primarily to boost their own egos and immortalize themselves-as well as to save paying taxes. In fact, Weinstock concludes that taxes are generally the driving force behind charitable giving for both men and women. After all, without proper estate planning, taxes can eat up 70 to 90 percent of an inheritance, says Weinstock. "There would be little charitable giving without the tax issue. Most people feel better giving the money to charities than to the government."

Jennifer Nelson is a researcher at Wealth Manager.