Did you know that charitable giving increases at this time of year? Indeed, about 40 percent of all charitable donations in the U.S. are made in December. For many charities, end-of-year fundraising is the difference between a successful year and financial hard times. But who is doing the giving? Many think that the majority of all charitable donations are made by the ultra wealthy (think Bill Gates and Sam Walton), big foundations, or prosperous companies trying to increase their tax deductions. In reality, of the more than $300 billion that Americans give to charities every year, only 15% comes from foundation grants and 6% from corporations. The rest – nearly 80 cents of every dollar — is given by individuals. Yet, it’s not primarily by the people you’d most expect.
Who does give to charity? If you think that social class would be a straightforward predictor of charitable generosity, think again. Yes, it does stand to reason that the more wealthy a person is, the more they have to give and the less risky it is to give away some of that wealth. By the same token, the poorer a person is, the less they have to give and the more precarious it is to give some of that away. Therefore, logic dictates that the mega rich should be giving far more to charities than those nearest to the poverty line. Likewise, one would think that people living in the most affluent and liberal states would be more likely to give to charity than those in conservative and poorer states. However, the reality about charitable giving – in the U.S. and abroad – would probably surprise most people. It’s not what you’d expect.
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