Charitable Donations of the Wealthy
According to Spectrem Group’s study of investors with a net worth of at least $25 Million Plus (Not Including Primary Residence), 85 percent make charitable donations annually, and 47 percent donate at least $10,000 per year. Twelve percent give at least $100,000 annually to charitable organizations.
Eighteen percent of investors aged 56-65 give at least $100,000 per year, according to Spectrem’s 2014 $25 Million Plus Investor report.
Charitable contributions are tax-deductible, and 34 percent of investors said they are increasing their charitable contributions in order to decrease their overall tax bill.
Being able to travel the world is one of the perks of great wealth, and most of the $25 Million Plus investors spend on travel every year. But 28 percent say that a portion of their travel every year is for charitable or humanitarian purposes. That includes 46 percent of investors aged between 56 and 65, and 37 percent of investors with a net worth of at least $125 million.
Overall, the most charitable contributions by the $25 Million Plus investors went to religious organizations, with 25 percent of funds being earmarked for that purpose. Twenty-two percent went to charitable contributions for schools (including colleges), and 13 percent went to social service organizations.
Eleven percent of all charitable contributions went to hospitals or health care organizations, and 8 percent went to arts and humanities groups. Five percent each went to disaster relief or environmental organizations.
There are a great many charitable organizations looking for financial assistance, and 74 percent of the $25 Million Plus investors say they make their charitable donations based on causes in which they are most passionate about. Forty-seven percent said they do not change their charitable contributions annually, maintaining the same charitable relationships year to year.
Fourteen percent of the wealthiest investors say they would donate to causes in the third world that promote economic stability and benefit start-up businesses in that part of the world.
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