Coutts Million Dollar Donors Report 2014 RUSSIA FINDINGS

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Philanthropy is fast taking root in the lives of wealthy Russian individuals and families, as well as in the culture of corporations. Number of million dollar donations 30% gifted by individuals 20% gifted by foundations 50% gifted by corporations 1. Introduction The number and value of million dollar donations identified in 2013 soared, with significant increases on the 2012 figures. However, this is in part the result of the inclusion of donations from corporations and corporate foundations for the first time. The increase in the number and value of million dollar donations in 2013 is in part the result of the fact that 2012 s figures did not include corporate philanthropy, which accounted for 63 donations in 2013, totalling $381.83m. However, this is not the only factor as there was also a significant rise in the value of individual donations in 2013 compared to the previous year. In addition, the increase in donations captured in this report may be due to more willingness among donors to be open about such gifts (although the total is influenced by one or two very large gifts). Still, given the lack of data and information publicly available about donations in Russia, it is likely that the number and scale of donations of one million dollars or more continues to be much higher than we report. The source and distribution of donations in 2013 continued to be concentrated in Moscow and the Central region of the country, although less intensely than in 2012. Strikingly, nine donations of one million dollars or more were made to organisations outside Russia, including the USA, Israel, Germany and the UK. Foundations, human services and the government were the main recipients, with almost a quarter of the number of donations and a third of the value going to foundations. Religious and overseas organisations also featured heavily as destinations for mega-gifts. 2. Number and total The inclusion of donations by corporations and corporate foundations swelled the number and overall value of million dollar donations identified in 2013. $1.01bn total value of donations worth $1m+ 126 total number of donations of $1m+ Some 126 charitable donations worth a million dollars or more were identified in Russia in 2013, with a total value of $1.01bn a dramatic rise from 2012, when only 35 such donations were founded by the research, totalling $239m. Page 1 of 5

There were increases in both the number and value of million dollar donations from individuals and foundations. The rise in individual contributions was the most significant, ballooning from $214m in 2012 to $555m in 2013. The rise in the overall total also resulted from the fact that data on corporations and corporate foundations was gathered for the first time. 3. Average size The average size of million dollar donations rose in 2013, influenced by one or two very large gifts. The average (mean) million dollar donation of $8m was larger in 2013 compared to 2012 s figure of $6.8m. The median (the middle value when all are placed in ascending order) was $2.7m, while the mode (the number that occurs most frequently) was $1m. MEAN MEDIAN MODE $8m $2.7m $1m in 2013 in 2013 in 2013 $6.8m $2.6m $1m in 2012 in 2012 in 2012 4. Value Three gifts of $100m or more were identified in 2013. One of these was a pledge for $100m for a healthcare programme. This donation will be phased over a number of years, meaning that the full benefit was not received in 2013. Broken down, 44% of donations were worth $1-$2m, 37% were in the $2-$10m range and 19% were worth $10m or more. 44% 55 gifts of up to $2m 37% 47 gifts of between $2m and $9.9m 17% 21 gifts of between $10 and $99m 2% 3 gifts of over $100m 5. Source Individual donors gave over half the total value of million dollar donations in 2013. Corporations gave exactly half the number of million dollar donations (63), but only 38% of their value. This situation was almost reversed in the case of individuals, who gave only 30% of the number of donations, but more than half (55%) of their total value. The least significant Page 2 of 5

player was the foundation sector, which made only 25 (20%) of million dollar gifts, comprising 7% of the total dollar value. This may be explained by the fact that foundations tend to spend their budgets over a longer period and therefore give smaller amounts within a single year. In terms of frequency, most million dollar donors made only a single gift, but one foundation made 12 such donations, one individual made six and one company seven. 1 Foundations Individuals Corporations $72.5m $555.2m $381.8m 7% of total value in 2013 55% of total value in 2013 38% of total value in 2013 6. Location Around half of million dollar donations came from the Central region. Almost half the million dollar donations were made by donors in the Central region (which includes, but is not restricted to, Moscow). These gifts also accounted for over half of the total value (53.4%). This regional concentration was evident among all donor types corporate, foundation and individual but was most marked among individual and foundation donations (15 of the 25 donations by foundations, for example, were made out of the Central region). Corporate donations, the most numerous category, were more widely spread, with nine from the Far East, eight from the Volga and seven from the Siberian region. Corporations and their foundations are mostly based outside Moscow because they are oil, gas or steel companies, or working in other heavy industries, and they tend to support the regions they work in. 7. Recipients Half of recipients were located in Moscow and the Central region. As with the source of donations, the main concentration of beneficiary organisations was in the Central region, including Moscow (49%). By contrast, only nine Siberian organisations received million dollar donations, although these accounted for 15% of the total value. Of those, three donations given to Siberian organisations by individual donors were worth a total of $83m. Interestingly, nine donations were given to the USA, Israel, Germany and the UK, making overseas the second largest category. The majority of recipients (82) received a single million dollar donation, with four given four such gifts and 12 other organisations receiving two or three. 98 total recipients in 2013 1 In contrast to the other regions in the report, Russia reported relatively few million dollar donations from corporate foundations only two in 2013. Whilst in other regions such donations were classified under corporations, for Russia it was deemed more appropriate to classify these two particular donations under foundations, given that the sources of their funding were individuals and shareholders associated with the corporation rather than coming solely from the corporation itself. Page 3 of 5

Recipients Number Value,% Central (including Moscow) 49 51.5% Siberian 9 9.2% Southern 2 2.0% Volga 3 3.1% North Western 5 5.1% West 1 1.0% Urals 5 5.1% Overseas 9 7.7% North Caucuses 1 1.0% Far East 7 7.1% All regions 7 7.1% Total 98 8. Distribution Foundations, government and human services attracted the highest number and share of million dollar donations. The main beneficiaries were foundations (29 donations), government (25) and human services (24). Of those gifts given to government, 23 came from corporations including one large donation of $100m for governmental causes and one each from an individual and a foundation. Overseas organisations received nine gifts and came fourth in terms of the total value of gifts. Higher education (11 donations) and culture (10) came next in line according to the total value given, although they received a slightly larger number of gifts than the overseas sub-sector. The number of donations made to foundations means that the benefits of a significant amount of the gifted money this year are likely to be felt in years to come rather than immediately. Foundations tend to distribute gifts over time and can often spread these among a large number of smaller beneficiaries. Total $1.01bn 126 donations of $1m+ Foundations $317m 29 donations of $1m+ Government $246m 25 donations of $1m+ Human services $155m 24 donations of $1m+ Page 4 of 5

Overseas 2 $135m 9 donations of $1m+ Religion $63.8m 6 donations of $1m+ Higher education $45.3m 11 donations of $1m+ Arts, Culture & Humanities $18.9m 9 donations of $1m+ Health $14.6m 6 donations of $1m+ Education (not universities) $12m 5 donations of $1m+ Public & societal benefit $1m 1 donations of $1m+ International 3 $0.8m 1 donation of $1m+ Disclaimer The information in this document is produced by Coutts Institute and does not constitute financial research nor does it specify Coutts products and services. You may use this information for your own personal reference, but the information herein may also be reproduced, stored, distributed, or transmitted to any other person or incorporated in any way into another document or other material, provided Coutts copyright and co-authorship in relation to such information are clearly recognised at all times. This document may reference civil society organisations, including private foundations, charitable organisations and social enterprises. Organisations noted on this website are not endorsed by Coutts and the content of this website does not constitute recommendations for funding or investment. Any risks associated with supporting or investing in organisations noted on this website are the individual s own. Coutts does not receive a commission or payment in any form from any organisation noted on this website. Nothing in this document constitutes investment, legal, financial, accounting or tax advice and does not confirm that a representation or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation to you. Philanthropists should seek independent tax and legal advice regarding tax and legal effectiveness of their philanthropy. This document may contain links, addresses or hyperlinks to other websites that are not operated or monitored by Coutts. Should you activate such links, you enter such websites at your own risk. Coutts has not reviewed such websites and does not accept any liability for their content, the offered products or services or any other offers. The views and opinions expressed in these websites are those of the website authors and are not necessarily shared by Coutts. Although the information in this document has been obtained from sources believed to be reliable, Coutts and its affiliates do not guarantee its accuracy, completeness or fairness. To the extent permitted by law and any applicable regulation, neither Coutts nor its affiliates accept responsibility for any direct, indirect or consequential loss suffered by you or any other person as a result of your or their acting, or deciding not to act, in reliance upon such information, opinions and analysis. 2 Overseas refers to organisations headquartered outside Russia. 3 International refers to organisations based in Russia that operate primarily outside the country. Page 5 of 5