So say their donation records at least. According to the Congressional Budget Office (CBO) and Indiana University, the types of charitable contributions people make vary greatly depending on their income. They broke down the charitable giving into 7 categories:
- Religious
- Education
- Arts
- Basic Needs (think homeless shelter/soup kitchen)
- Health Organizations
- Combined Purpose
- Other
If you break down the percentages of what people donate based on income, the differences are fairly interesting. Look at religious giving. Those making between $0-$200k per year allocate more than half of their donates, and in some cases 2/3, towards religious organizations. Those making more than $200k devote less than 1/4 of their donations to religious organizations.
The arts are just as notable. The middle class uses 2% or less of their donation allocation for the arts. But those making $200k or more put forth 15%. There are similar discrepancies in donations for basic needs as well.
And what of the amount of their income people donate? Are the rich really donating as much as they say they are? They’re certainly putting forth a greater percentage than the poor and middle class. You can view the chart in the link at the bottom of the page, but the percentage of ones income that is donated increases with the amount of income they have. Those making more than $500k per year donate considerably more than the rest of the population. For those keeping score that less than the “1%”.
Of course it’s great that the rich are donating their money. Also great that the poor and middle class donate too. But I wonder how much of a rich person’s donation is actually out of love. Because they also get some nice tax advantages. And the richer you are the more likely you are to be in the public eye. It’s almost expected for public figures to donate money. Then there’s winners remorse, feeling guilty because you’ve got it good and other don’t. So how much of it is truly selfless love, and how much is something else?
I’m sure the board of the United Way doesn’t care one bit. But I don’t think any more highly of a rich man who shares his steak than a poor man who will split a loaf of bread.
Read: Which Americans Are Most Generous, and to Whom (Economix)
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
