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.
A few takeaways
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.
Share this Post
If you enjoyed this content and would like to receive updates via email, please subscribe.
Leave a Comment
Published November 12, 2015
Topics: Giving Trends