Motivations for Giving
Why do you make gifts to charity? According to the 2014 U.S. Trust® Study of High Net Worth Philanthropy, the overwhelming percentage of respondents said it was because they believe that their gifts can make a difference (73.5%) or for personal satisfaction (73.1%). The study asked high net worth donors – defined as those with household incomes greater than $200,000 annually or net worth of more than $1 million (excluding the value of their homes) – a variety of questions on their giving habits.
Not all gifts come from donors who are high net worth, of course. In fact, many generous individuals fall below those thresholds. But the motivation is probably the same for most donors. Not surprisingly, only about one-third (34.4%) listed tax benefits as a motivation. While income tax charitable deductions are available for gifts to charity, millions of people who don’t itemize their deductions – and who therefore receive no tax benefit – give to charity every year.
High net worth individuals, like many other donors, give primarily by cash or check (78.8%), although 20.7% report that they have or plan to make gifts of stock or mutual fund shares. Nearly half of respondents report that they either currently have a will with charitable provisions (36.8%) or plan to establish one within the next three years (6.6%).
Director of Institutional Advancement
The materials contained on this website are intended only to show some ways by which you can make a charitable gift or bequest and thereby minimize federal tax liabilities, as authorized by the Internal Revenue Code. All examples are of a general nature only and should not be applied to your specific situation without first consulting your attorney or other advisers.