Private Philanthropy plays vital role in reducing inequality

The vital role of private philanthropy in reducing inequality and improving the lives of vulnerable and needy communities has come sharply into focus with the release of the Oxfam International report Working for the Few: Political capture and economic inequality, presented during the recent World Economic Forum in Davos, Switzerland.

While the report indicated some of the most glaring inequalities across the globe today, Nedbank Private Wealth’s Giving Report II shows that South Africa’s high-net-worth individuals contributed R8 billion in cash to philanthropic causes, R5,1 billion in goods and services and 7,9 million hours of their time in 2012.

'Although the Oxfam report highlights some of the biggest discrepancies between the world’s haves and have-nots, it is important to realise that the vast majority of the 300000 or so high-net-worth individuals in South Africa are doing their bit to make a difference,' says Noxolo Hlongwane, philanthropy specialist at Nedbank Private Wealth.

'As we battle to make inroads into inequality in South Africa, the voluntary efforts and contributions of the country’s wealthiest individuals are significant and demonstrate commitment to bettering and bringing more fairness to our society,' Hlongwane continues.

The Giving Report II, commissioned by Nedbank Private Wealth and published in October last year, is the followup study to the Giving Report 2010 and it shows that 91% of South Africa’s high-net-worth individuals contributed cash, time and goods and services to worthy causes in 2012.

Their reasons for giving vary from caring about the cause they support and wanting to make a difference in and giving back to their communities, to family traditions, with religious beliefs a much stronger influence than in the previous study. Social and community development causes such as hospices, children’s homes and old-age homes were among the most supported causes.

Economic inequality has been identified as a risk to human progress by the World Economic Forum. Widening income disparities has been ranked as the second greatest worldwide risk in the coming 12 to 18 months, as it impacts on the social stability of countries and threatens security globally.

Some of the highlights in Oxfam's presentation of its analysis on inequality in Davos include:

•Almost half of the world’s wealth is now owned by just one percent of the population.

•The wealth of the one percent richest people in the world amounts to $110 trillion. That’s 65 times the total wealth of the bottom half of the world’s population.

•The bottom half of the world’s population owns the same as the richest 85 people in the world.

'Without a concerted effort to tackle inequality, the cascade of privilege and of disadvantage will continue down the generations,' says Winnie Byanyima, Executive Director of Oxfam International.

Nedbank salutes the high-net-worth individuals who are addressing the inequalities in South Africa. May they be an inspiration to one and all.