Charitable Causes Do Not Sway Most Wealthy Investors
Wealthy investors have myriad reasons for choosing their investment products, but charity does not play much influence, a Spectrem study shows.
In an August survey of more than 1,000 investors, only 31 percent said a company’s support of a charitable cause influences the decision to invest in that company. For some, the percentage is much less, such as men, of which only 24 percent agree, or those with $5 million in net worth not including primary residence, of which only 22 percent look at charitable causes as an investment reason.
There are segments among wealthy investors that are interested in charitable causes. Almost half (48 percent) of investors under the age of 40 look at charitable efforts for investment decisions, and almost 40 percent (39.5 percent) of business owners do so.
While a portion of investors do consider charitable causes when making investments, almost none of them buy products from companies based primarily on their support of a charitable cause. Only 7 percent of investors make purchases based on charitable contributions. That number drops all the way to 3 percent of investors with a net worth over $5 million.
Ten percent of females do shop with charitable causes in mind, and 16 percent of investors under the age of 40 do so. Less than 5 percent of investors over the age of 60 have charity in mind when making purchases.
When a disaster occurs as a result of an act of nature, charitable groups like the Red Cross often ask for donations that can be made by simply dialing a phone number and offering a credit card. But only 8.5 percent of wealthy investors make it a practice to donate in that way. Investors under the age of 40 report the highest usage, with 16 percent saying they contribute over the phone, while 13 percent of corporate executives report doing so.
Least likely to make a contribution via a cellphone is the extremely wealthy. Only 4.5 percent of investors with a net worth of over 5 million said they would make a donation in that manner.