6 Facts for Understanding High Net Worth Giving
A 2014 study by US Trust/Bank of America and the Indiana University Lilly School of business revealed 6 key facts related to high net worth givers:
- On the positive side, giving by high net worth households increased by 28.1 percent with an average gift of $68,580.
- On the other hand, giving as a percentage of income declined by 8.7 percent in 2011 to 7.8 percent in 2013.
- As wealth goes up so does giving: those with household wealth of $5 million or more gave on average $166,602, while those with household wealth of $1 million to $4,999,999, gave $24,955.
- More households—78.2 percent—were willing to make unrestricted gifts versus restricted gifts—20.1 percent.
- Giving vehicles to charity continued to climb—28 percent—compared to 23.4 percent in 2011.
- The vast majority of high net worth givers—82.5 percent—still give out of their personal income instead of using vehicles.
What do we make of these statistics? Here are 3 lessons:
- Giving among the high net worth as a percentage of income is still higher than the general population—7.8 percent to approximately 2 percent for the majority.
- The decline in giving as a percentage of income reflects the broader squeeze across the economy and the markets—there continues to be more uncertainty for all.
- As there is increased uncertainty, people are increasingly looking for creative ways to give including giving things like vehicles.