Research Summary

Business Women of Achievement Are Independent Philanthropists

Center for Women’s Business Research  ·  November 12, 1999

Members of women’s business group are substantial givers

The study, sponsored by Merrill Lynch, is based on a survey of members of The Committee of 200 (C200), an organization of business women who own companies with revenues in excess of $15 million or manage divisions of U.S. corporations that generate a minimum of $100 million annually.

“These women of achievement are generous,” noted Lois E. Haber, CLU, ChFC, NFWBO Chair and President & CEO of Delaware Valley Financial Services, Berwyn, Pa. “Over half of those surveyed donate $25,000 or more annually to charitable organizations; it is impressive that 19% donate $100,000 or more.” In addition to their substantial monetary contributions, a strong majority of the survey participants say that they are very involved in volunteering their time to charitable activities.

Linda K. Paresky, Chair Emerita of the C200 Foundation, observed that “these savvy women, who have demonstrated business acumen, are motivated to give to organizations that support issues that they are passionate about. In addition, the survey shows that these business women expect the organizations that they support financially to be well run.” Eighty-six percent (86%) said that each factor was very or extremely important. (more)

“As the NFWBO research has found, business women of achievement have very clear intentions about how much and to whom they are giving,” said Doris Meister, Chairman and CEO, Merrill Lynch Trust Company. “In Merrill Lynch’s experience, however, these women aren’t always clear about how they should give-how to implement philanthropic strategies that can help them achieve multiple objectives such as maximizing gifts while helping their families.”

“The research also has some interesting lessons for philanthropic organizations; for example, many of these women say they are put off by the way they are asked to give,” Meister added. Forty-two percent (42%) say the way they are asked to give is a moderate or significant barrier.

When asked if they think they are taken as seriously by philanthropic organizations as men of comparable net worth, 60% of those surveyed said yes. “However,” said C200's Paresky, “one out of every four think they are not taken as seriously, information that should be noteworthy to the fundraising community.”

The business women surveyed support a wide variety of causes. More than half (56%) say that education-related groups are among the top three types of organizations that they support; 42% listed women-related groups and 41% listed the arts among their top three charitable causes. Organizations they support to a lesser extent include health-related causes, religious organizations, youth-related groups, social/human service concerns, local community service groups, political organizations, and environmental issues.

Members of The Committee of 200 are not concerned with garnering recognition for their philanthropy. In fact, 40% prefer not to be recognized at all for a “significant” contribution; 21% said it depends on which organization or charity is the recipient of the contribution; and 19% say they would like to be recognized merely in a listing with other contributors. This sentiment does not change with the level of giving.

The survey results were announced today at a conference co-hosted by The Committee of 200 and the Simmons Graduate School of Management in Boston, “Philanthropy Transformed: The Powerful New Voice of Women.” Merrill Lynch also sponsored the conference.

Other survey highlights include:

A 54% majority of the businesswomen surveyed say they do not seek advice or counsel from anyone before making their philanthropic decisions; 21% consult their spouse; 10% discuss giving decisions with other family members; 9% talk to their accountant or CPA; 9% talk to a financial planner or consultant.

Two-thirds (66%) of C200 members say that they are motivated to make financial contributions to organizations based on their support for a particular issue or cause; 40% are motivated by a desire to give back to the community and to make a better future. 6 charts follow.

C200 Members Contribute Generously to Charitable Organizations C200 Members are in Driver’s Seat With Respect to Giving Decisions Philanthropic Decisions Influenced by Passion and Good Management Lack of Time and the Way One is Asked Are Barriers to Giving C200 Memebers Support Many Causes Personal Recognition Not Important to Business Women of Achievement

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The Executive Report, “Philanthropy Among Business Women of Achievement: A Summary of Key Findings,” is available for $50. (Discounts are available for NAWBO members, The Committee of 200 members, and NFWBO corporate partners.)

The National Foundation for Women Business Owners (NFWBO) is a nonprofit research and leadership development institute. NFWBO is recognized as the premier source of information and intelligence on women business owners and their enterprises by corporations, policy makers, financial institutions and the media. Up-to-date intelligence about women business owners and their enterprises worldwide is documented in NFWBO’s original research and analysis. The Foundation is affiliated with the National Association of Women Business Owners (NAWBO).

The Merrill Lynch Private Client Group serves more than four million households, small- to mid-sized businesses and regional financial institutions using a planning-based financial-service approach. Among the many services available to Merrill Lynch clients are brokerage, personal credit, insurance, home financing and trust services, as well as retirement and group-employee-benefit services and business financing. Merrill Lynch clients are served by more than 14,400 Financial Consultants in more than 700 offices in the U.S. As of midyear, investors had entrusted Merrill Lynch with more than $1.5 trillion in account assets.

The Committee of 200 is the international organization of preeminent businesswomen dedicated to recognizing and promoting entrepreneurship and business leadership among women of this generation and the next. The Committee of 200 Foundation was established in 1986 to support and encourage women and entrepreneurship.

The Simmons Graduate School of Management educates women for positions of power and leadership. It is the only graduate business school in the world designed specifically for women. Simmons College, founded in 1899, was the first women’s college in the nation to provide both a liberal arts education and career preparation.

Study Methodology: A telephone survey was conducted among the nearly 400 members of The Committee of 200 from late June through mid July, 1999. An additional 28 high net worth minority women were also included in the survey population. One hundred and eighty-four (184) interviews were completed, for a 43% response rate. As the study population was focused on the membership of The Committee of 200, an organization of leading women business owners and executives with higher than average levels of net worth, these women are not representative of the full spectrum of women business owners or executives. The sampling error for a sample size of 184 is approximately 7.1% at the 95% level of confidence. This means that, 95 times out of 100, the survey results will be within 7.1% of true population values.

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