While older or retired individuals are the most likely to have the accumulated wealth to give, new and emerging groups have become increasingly active in charitable planning and giving.
While a majority of Millionaire Baby Boomers and seniors consider using their money to help others to be among their financial concerns, it is less of a priority this year, according to ongoing wealth level studies conducted by Millionaire Corner. Overall, nearly three-in-ten Millionaires (28 percent) state they are concerned about using their wealth for charitable giving, down from 34 percent in 2012.
Fifty-six percent of Baby Boomers and seniors (28 percent each) are committed to charitable giving. Across age groups, Millennials and the Gen Xers under 40 are the most likely to rank charitable giving as a priority (32 percent), but high unemployment amongst this demographic and the challenging job market may be impacting their wherewithal to give.
The recession, too, impacted charitable giving amongst affluent investors. A 2012 Millionaire Corner survey found that almost half of respondents said they have decreased charitable contributions over the course of the prolonged economic downturn.
But while older or retired individuals are the most likely to have the accumulated wealth to give, new and emerging groups have become increasingly active in charitable planning and giving, Financial Planning magazine reports.
Among these include:
· Women:.Women are more likely than men to donate time and money to non-profit organizations. The magazine notes that “because more women now earn more than before and are living longer than men, they often are more likely to be responsible for making the charitable giving decisions.”
· Individuals/couples without children: Often, this group, who may have never married or are divorced are currently giving or selecting charitable beneficiaries rather than leaving assets to siblings or nieces or nephews, FP finds.
· Individuals/couples with children: Some are taking their cue from Warren Buffet and Bill Gates and not bequeathing too much to their offspring for fear they may not be responsible with their inheritance or will lose the motivation to be productive members of society.
· Entrepreneurs: Many individuals who have started their own business feel compelled to give back to the community. Studies have shown that entrepreneurs donate up to three times more than inheritors of wealth.
· Younger individuals: FP notes that younger individuals have volunteered for years as high school and college students and are now in a position to donate money. Some will in turn get their children (or parents) involved, while others may inherit inherited money and will increase their charitable giving at that time.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.