Despite the economic challenges faced by the majority of South Africans during and after the Covid-19 pandemic, the high-net worth individuals (HNWI) retained many of their previous giving practices.
This is according to the 2022 Nedbank Private Wealth Giving Report, which was presented at Summer Place in Hyde Park, Johannesburg this week.
The report found that South Africans remained robust in their philanthropic spirit, and were always willing to give for a good cause.
At least 62% did not change their giving practices, 31% focused on responding to immediate needs, 7% increased consultation with recipients, while 6% gave more funding. Another 4% collaborated with other funders and the remaining 4% assumed more risk.
Marilize Lansdell, Nedbank managing executive for wealth management, highlighted that the size of the giving market increased in 2021, but there was a significant decline in the amount of volunteering.
However, Lansdell said this was understandable considering national lockdowns implemented by the government at the time.
“No less than 83% of the HNWIs surveyed for this latest report gave their money, time or skills during 2021, with approximately R4.2-billion in cash, R2.6-billion worth of goods and services, and a total of 3.2-million hours of physical volunteerism provided,” Lansdell shared.
She pointed out that more cash donations compared with physical volunteerism was experienced during the peak of the pandemic, saying this was due to strict restriction placed on people’s movement and social distancing.
Although this was the case, cash donations have reportedly declined by R2-billion from the last survey undertaken in 2018.
“It’s likely that this drop in the overall value of cash giving is a direct result of the economic challenges created by the pandemic, which resulted in declining income levels for many South Africans, including affluent individuals,” she said.
Hein Klee, head: international – Nedbank Private Wealth, who presented the report, said only 6% of the giving went towards assisting during the pandemic.
“One would’ve anticipated that the huge amount of giving money went to Covid-19 relief, and that’s actually not the case, which is a positive thing in a certain way, because the pattern of giving has continued and is not steered away,” said Klee.
“What [will be] interesting to find in the next report is to see what the money earmarked for Covid-19 relief was utilised for. Where is that being channeled into and what has changed.”
Questioned on what would need to change for them to give more, the participants pointed to increased income and more funding, according to Klee.
“Nothing needs to change and it depends on the needs, if there’s merit. My belief is that giving in South Africa is very sound and healthy, to the extent that we are giving for the reason of wanting to do good and not for necessarily gaining recognition and tax rewards.”
Gift of the Givers founder, Dr Imitiaz Soolman, applauded the results of the report, stating that South Africans rallied together during the peak of the pandemic, not for publicity but to offer help.
“Covid-19 was a defining factor in changing human thinking, when the life of a human being became more important than publicity, marketing, PR [public relations] or just being a number,” said Soolman.
“For the first time, the CEOs of the companies got involved and said: ‘Don’t worry about CSI [corporate social investment] division, I am the CEO of the company, what do you need and how much do you need? We need to save lives, we need to save our country.’ That was the defining moment.”
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