The Wealthy are Cheap

Middle income Americans who earn $50,000 to $100,000 a year are two to six times more generous in their share of investment assets that they give to charity than those Americans who make more that $10 million a year.The least generous of all working age Americans in 2003 were among the young and prosperous taxpayers age 35 and under who made more than $10 million and the tax payers making   $500,0000 to $1 million.

On average these two groups made charitable gifts equal to 0.4 percent of their assets, while people the same age who made $50,000 to $100,000 gave gifts equal to more than 2.5 percent of the investment assets.

The IRS data was analyzed by NewTithing Group, a San Francisco – based  philanthropic research organization.

Should we spend more time with the middle class for major gifts than we do now?  Maybe so.

2 comments

  1. well – the percentage is lower but then you consider 1% of 10 million is $10,000 compared to 2% of $50,000 – $1000 -: ) then you add to the the individual cost of trying to get a donation – when you focus on a larger pot of money – you actually spend less money getting that dollar$$ which means you keep more – not only is that one of the biggest grip with people giving a donation (how much $$ actually goes to help) but its also very disconcerting to the NPO which does want it to ge to the right place and not spend so much actually getting the dollar…

    after that is said and done – i really do beleive in getting the doation from middle class area (upper and lower) why? because it gives a chance to connect with people about you concern… while its costing you the npo money to do it – they are getting it back (through the smaller donation) and they are reaching the community – telling a story – allowing people to not only hear but allowing them to do some thing about it… this is very important to any NPO that wants to survive!!! getting people involved…

    p.s. – i do not want to make this statment be a excuse for paid cold calling some NPO do with firms…i do not agree with this tatic – donations at that level should be with people with a story to tell (volunteers – or – participants)

  2. I agree with you to a point. /but the very wealthy are worth an effort. if you can get them to sponcer a given project that requires recurring gifts.

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