The 2010 Study of High Net Worth Philanthropy, funded by Bank of America and Merrill Lynch and researched by the Center on Philanthropy affirms a lot about what we already know; but adds a few interesting new tidbits. You can find the entire 75-page study here.
Key Findings Regarding Giving High Net Worth Individuals:
· Despite economic downturn, high net worth individuals remain committed to charity.
· Most have some or a great deal of confidence in nonprofit organizations to solve problems.
· The average gift dropped significantly, with healthcare taking the biggest hit.
· Most important considerations that motivate giving:
o They believe their gift will make a difference (72%).
o They feel financially secure (71%).
o The organization is efficient in its use of their gifts (71%).
o Percent going to program v. admin (54%).
o Communication about impact of gift (34%).
· They expect professional competence:
o Sound business and operational practices (86.9 %)
o Acknowledgement of contributions (including receipts) (84.9 %)
o Spend appropriate amount on overhead (80.1%)
o Protection of personal information (80.1%)
o Full financial disclosure (61.7%)
· In response to need in last two years, more gave to basic need and operations.
· Use of private foundations or trusts increased by 21%
· More are volunteering.
· A majority use advisors in their philanthropic decisions.
· Most confer with their spouses/partners.
· The top 3 reasons they stop giving:
o Too frequent solicitation or inappropriate amount (59%).
o Another cause captured their interest (34%).
o Household circumstances changed (29%).
· Effect of tax policy on giving:
o 67% would decrease their charitable contributions if there were zero income tax. (Compared to 47% in 2007).
o 43% would increase the amount they leave to charity if the estate tax were repealed. (Compared to 36% in 2007).
The good news is that most believe nonprofits can get the job done. Let’s make sure we live up to their confidence.
Jim
No comments:
Post a Comment