Study Finds That Financial Worries Have Sharp Effect on Giving by the Wealthy

Wealthy people who say they are worried about their financial future on average give about $1,200 less

to charity annually than those who do not share similar economic concerns, according to a study to be released this week by Independent Sector.

The study is based on interviews conducted in 2001 with 4,216 Americans before the economy and stock market declined sharply. The study’s results suggest that charities trying to raise money in today’s economy may have to work harder than they have in years to raise funds, said Gordon Green, Independent Sector’s vice president for research.

“There could be a dropoff in giving and volunteering if in fact more people are worried about money today,” Mr. Green said.

At every income level, people who said they were worried about money gave less to charity and volunteered fewer hours than did people without such concerns. But the difference was greatest among the wealthiest households.

For those with household incomes of $75,000 or more, people who were not worried about money gave about 50 percent more to charity ($3,630 on average) than those who expressed financial concerns ($2,440).

The giving patterns of people in low-income households were the least affected by whether they worried about money.

Those with incomes of less than $25,000 who did not have financial worries gave an average of $560 to charity. That was about one-third more than the average $430 donated by people who said they were worried about their financial situations.

Money concerns affected religious giving more than they did overall giving. Among households with the highest incomes, those who were not worried about money gave nearly 75 percent more to religious organizations ($1,890) than those who did have financial concerns ($1,100).

The difference in donations to secular groups was less significant. Those without money worries gave an average of $1,800 to secular organizations, about one-third more than the $1,360 donated by those with financial worries.

The pattern was similar for low-income households: Those not worried about finances gave nearly 50 percent more to religious groups than those who were concerned about money ($370 versus $250). Those not worried about money donated an average of $180 to secular groups, compared with $170 for those with financial concerns.

Copies of the report, “Giving in Tough Times,” can be obtained by calling Independent Sector’s publications office at (888) 860-8118. The cost is $15.95 for nonmembers, and $11.95 for Independent Sector member organizations.