Charitable giving gets a boost from wealthy donors

A new study from U.S. Trust reveals that a record 98.4% of wealthy households donated to charity last year.
SEP 14, 2014
Whether the result of frothy investment values, tax management or a general sense of philanthropy, the trend toward charitable giving among the rich has never been so prevalent. The results of a study released Tuesday by U.S. Trust show that 98.4% of wealthy households donated to charity last year and that the average donation was $65,580, a 28% increase from 2011 when 95.4% of wealthy households donated to charity. The upshot from what is the best year for giving since the first U.S. Trust Study of High Net Worth Philanthropy in 2006 is that 85% of the donors plan to give as much or more to charity over the next three-to-five years. "This year's study, more than ever, tells us that when wealthy donors are intentional about and engaged in their giving — when they find that meaningful intersection between their ideas and ideals — they give more, are more impactful and more personally fulfilled," said Claire Costello, national philanthropic practice executive for U.S. Trust. PLANNER NOT SURPRISED Tyson Jon Ray, founding partner of FORM Wealth Management Group, is not at all surprised by the findings. In his financial planning practice, philanthropy is a never-ending theme. “We spend a lot of time talking to clients about their mission, their legacy and their charity,” he said. “I've been amazed at how many people haven't thought about giving from their investment portfolio.” Mr. Ray, winner of this year's InvestmentNews Global Community Impact award, wrote a book last year about how financial advisers can change the world by helping clients change the world, “Your World Impact: As a Financial Advisor.” He recalls years ago hearing his grandmother explain that she doesn't give to charity because that's already taken care of through the taxes she paid, but says that attitude is fading fast among the generations that have followed. “The non-profit world is starting to resurface and become more meaningful,” he said, referencing a client who recently donated $100,000 to help renovate a local church. Beyond just money, the U.S. Trust research found that the wealthy are also giving more of their time, with 75% of respondents volunteering with at least one non-profit organization. Among those who volunteered in 2013, 59% volunteered more than 100 hours, and 34% volunteered more than 200 hours. VOLUNTEERISM STRONG The study found that volunteerism has an increasingly strong connection to giving levels. Wealthy donors who volunteered in 2013 gave 73% more on average than those who did not volunteer ($76,572 compared to $44,137). The study also found that giving among wealthy donors who volunteer increased 23% from 2009 ($62,302) to 2013 ($76,572), on average. In terms of where the money and time is going, 85% of the donors gave to education. Education also received the largest share of dollars (27%) among all charitable subsectors — more than giving to religious, environmental, arts, basic needs and international causes combined. Wealthy households cited the following as their top motivators for giving: believing that their gift can make a difference (74%), personal satisfaction (73%), supporting the same causes annually (66%), giving back to the community (63%), and serving on a nonprofit organization's board or volunteering for a nonprofit (62%). Only 34% of donors cited tax advantages among their chief motivators for giving.

Latest News

Judge OKs more than $90 million in settlement money for GWG investors
Judge OKs more than $90 million in settlement money for GWG investors

Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.

Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs
Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs

Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.

Retirement uncertainty cuts across generations: Transamerica
Retirement uncertainty cuts across generations: Transamerica

National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.

Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future
Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future

While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.

Raymond James continues recruitment run with UBS, Morgan Stanley teams
Raymond James continues recruitment run with UBS, Morgan Stanley teams

A father-son pair has joined the firm's independent arm in Utah, while a quartet of planning advisors strengthen its employee channel in Louisiana.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave