IBJNews

Wealthy Americans cut back on giving in 2009

Back to TopCommentsE-mailPrintBookmark and Share
On The Beat Industry News In Brief

Wealthy Americans scaled back their charitable contributions nearly 35 percent in 2009, a recently released study of wealthy households shows.

The Bank of America Merrill Lynch Study of High Net Worth Philanthropy for 2010 found that average charitable giving dropped from $83,034 in 2007 to $54,016 in 2009, after adjusting for inflation.

Wealthy philanthropists drew the purse strings tightest on health organizations, where the average gift dropped 63.7 percent, from $12,430 to $4,511.

The study, conducted every two years in partnership with the Center on Philanthropy at Indiana University, examines the habits of wealthy households, which account for about half of all charitable giving in the United States.

Researchers surveyed more than 800 randomly selected households where income was greater than $200,000 per year, or net worth, excluding the value of the primary residence, was at least $1 million. The average wealth of respondents was more than $10 million, and half of them had a net worth between $3 million and $20 million.

The decline in giving reflected wealthy people’s own financial situations. Although total charitable dollars fell, giving as a portion of income remained somewhat steady at 9 percent, compared with 11 percent in 2007.

Wealthy philanthropists appeared to adjust their priorities in response to the recession. The portion who gave to basic human needs rose from 75 percent in 2007 to 85 percent in 2009.

Some types of not-for-profits received bigger gifts on average. Arts, which are already supported to a greater degree by wealthy people, saw the average gift rise 11.6 percent, to $5,531. Gifts to international causes and the environment and animals grew as well.

Tax issues are a significant motivator, researchers found. About two-thirds, or 67 percent, of wealthy households reported that they would somewhat or dramatically decrease their contributions if they were to receive zero income-tax deductions. That was up from 47 percent in 2007.

If the estate tax were repealed, 43 percent of wealthy households would somewhat or dramatically increase the amount they leave to charity. That was up from 36 percent in 2007.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. Here are a few candidates for this new group, "ripped from the headlines." First up, that bizzaro State Senator Brent Waltz; secondly, the unethical Todd Huston, and his contractual arrangements scheme; Finally, but not least of all, the dishonorable Eric Turner. What sayeth you Greg Zoeller?

  2. Good day. I can't hide this great testimony that take place in my life I will love everyone to know it and be partaker that is why I always place it on answer, I am Mrs,Natalie Cuttaia by name, I live in Texas, United State Of America, I want to thank (Mr.Bruce Brandon) for his kindness upon my family life. I never knew that there is still nice lender like this on internet and earth here. Just some Months Back, I was in search for a loan of $100,000,00 as I was running out of money for feeding and rent. I was scammed $6,800 Dollars and I decided not to involve my self in such business again but a Friend of my introduced me to a loan firm due to my appearance and doings. And I told him that I am not interested of any loan deal anymore but he told me that there is still a nice lender who he will recommend me to, and I made a trial and I am most grateful lucky am I today, I was given a loan amount of $100,000.00usd, by this great Company (Bruce Brandon Loan Company) managed by (Mr.Bruce Brandon) If you are in need of a genuine or legit loan or financial assistance and you can be reliable and trusted of capable of paying back at the due time of the funds I will advice you to, contact him via: ( bruce.brandon071@gmail.com ) And you will be free from scams in the internet. All thanks to Mr.Bruce Brandon You are the one who remove me and my family out of poverty. The reason why i am doing this is that, i promise Mr.Bruce Brandon that if i truly got my loan, i will advertize his company and bring customers to his company. Contact him via ( bruce.brandon071@gmail.com )for the Loan you have been looking for..

  3. Hello, We are firm Organization formed to help people in needs of helps,such as financial help. So if you are going through financial difficulty or you are in any financial mess,and you need funds to start up your own business,or you need loan to settle your debt or pay off your bills,start a nice business, or you are finding it hard to obtain capital loan from local banks,contact us today via email mrsroseberrywilkinsfunds.usa@gmail.com So do not let these opportunity pass you by because Jesus is the same yesterday, today and forever more. Please these is for serious minded and God fearing People. Your Name: Loan Amount: Loan Duration: Valid Cell Phone Number: Thanks for your understanding to your contact as we Await Regards Management Email:mrsroseberrywilkinsfunds.usa@gmail.com

  4. The question is, where could they build a new stadium? It seems in the past year, all the prime spots have been spoken for with potential projects. Maybe in the industrial wasteland area a block past Lucas Oil? I think it needs to be close to the core, if a new stadium is built.

  5. Aldi is generally a great shopping experience. Still, I'm sure YOU wouldn't want to shop there, which I consider a positive.

ADVERTISEMENT