The Vatican has published a new list of seven deadly sins. “The excessive accumulation of wealth by a few” was deemed to be a mortal sin alongside taking or dealing in drugs.

It has been recently widely reported that the Vatican has published a new list of seven deadly sins. “The excessive accumulation of wealth by a few” was deemed to be a mortal sin alongside taking or dealing in drugs, ruining the environment, carrying out morally debatable scientific experiments, or allowing genetic manipulations which alter DNA or compromise embryos. In seeking clarification from the Catholic Communications network WealthBriefing found that the Catholic Church has not, in fact, issued a new list of mortal sins. The story originated from an interview that Monsignor Gianfranco Girotti – not, as reported, the head of the Apostolic Penitentiary, but the regent or official - gave to the L'Osservatore Romano, the official Vatican newspaper, in which he was questioned about new forms of social sins in the age of globalisation. Whilst the sin of “excessive accumulation of wealth” is not a Vatican edict, nor official line from the Pope or the Catholic Church, the implications of this bold statement from a senior Catholic official are potentially huge for an industry built on creating and preserving wealth. Is amassing huge wealth really sinful and how does one define “excessive”? It was not possible to gain clarification from the Church around what is meant by “excessive” wealth and if one has already aquired it, what should be done about it. However, what is certain is that even without church edicts, many wealthy individuals today are as interested in giving their wealth away effectively as they were in creating it in the first place. With the assets of wealthy individuals rising at the fastest rate for seven years according to Merrill Lynch and the number of individuals with more than a $1million dollars to invest now almost at 10 million, concerns around the gap between rich and poor are unsurprising. Philanthropy has long been an imperative for wealthy individuals and in the UK and the US has occurred on a grand scale since Victorian times, but has recently achieved increased momentum. Barclays Wealth’s report into philanthropy conducted in autumn 2007 says that whereas those who inherit their wealth from long lineage are likely to feel they are looking after it for the next generation and less likely to give large sums away, those who generate wealth through liquidity events, as is increasingly the case, are more inclined towards philanthropy. One ultra high net worth individual is reported as saying: “If I see someone begging on the street, there but for the grace of God go I – one never knows when you might need a friendly hand, and if you can afford to do other people some kind of charitable act, then I think we’re all obliged to do so.” UK-based New Philanthropy Capital notes that rather than amassing wealth in their lifetime and bequeathing it when they die, there is a trend towards wealthy individuals giving money away during their lifetime: “Motivations are as diverse as the people that come to us. Some are passionate about a cause because of personal experience. Some have come from poor upbringings and want others to have more opportunities than they did,” says Harry Charlton from New Philanthropy Capital. “Today’s philanthropists are increasingly more businesslike about their giving. They see their donation as an investment in the future and want to understand how their money is making a difference.” Merrill Lynch CapGemini’s World Wealth Report 2007 also noted a growing trend towards philanthropy with the wealthy across the globe increasing the financial resources, time and thought that they devote to philanthropy. Whereas in the past, there was a tendency for charitable giving in Europe to go under the radar, recently a more high profile US style of giving has emerged which should encourage more philanthropic activity going forward. However, giving to charity is not, it would appear, driven by a fear of damnation. Barclays Wealth found that wealthy individuals' reasons for philanthropy were diverse, but driven by a combination of four factors. Whilst one motivation was to cleanse the conscience, a sense of responsbility, compassion and a direct link to a cause were all important drivers. Scorpio Partnership’s research amongst the ultra wealthy and family offices conducted in 2007 found that they gave because of their experience of a particular issue or for historic reasons. One respondent said: “Philanthropy is like a drug. The more I do the more I want to do.” Bishop Girotti would be comforted to know that the richer an individual is, the more likely they are to give their wealth to good causes. The Sunday Times Rich List 2007 reported that the top 30 philanthropists in the UK pledged or donated £1.2 billion to charities in the past year. According to the World Wealth Report 2007, 11 per cent of those with $1 million gave 7 per cent of their wealth to philanthropy, 17 per cent of those with $30 million plus gave even more– over 10 per cent of their wealth to good causes. According to Giving USA Foundation, less affluent individuals donate less than 1.5 per cent of their earnings each year. Whilst the proportions of those giving are still relatively small, there is one thing that might tip the balance. Money might not be the root of all evil, but according to Barclays Wealth the newly wealthy are apparently often “terrified” of letting their children have access or even know about their wealth due to its potential corrupting power. Perhaps the motivation to save their childrens’ souls, rather than their own, might save wealthy individuals from the sin of “excessive accumulation of wealth”.