Survey Finds Giving in Silicon Valley Is Strong, but Not Among Wealthy

Silicon Valley is proving to be fertile ground for philanthropy, but not among the wealthiest households, according to the findings of a new survey.

Commissioned by the Community Foundation Silicon Valley, in San Jose, the study found that more than 8 in 10 households in the area give to charity. Those who reported contributing money to non-profit groups gave, on average, 2.1 per cent of their income.

Those numbers are on a par with the rest of the country. According to the 1996 report Giving and Volunteering in the United States, commissioned by the non-profit coalition Independent Sector, 69 per cent of households reported making charitable contributions and reported giving, on average, 2.2 per cent of their income.

Another recent study paid for by Community Foundation Silicon Valley found that corporate giving is also strong in the area, although much of the philanthropy is in the form of product donations (The Chronicle, July 30). Taken together, the studies suggest that Silicon Valley may not deserve its reputation for being stingy when it comes to charitable giving.

Not all of the news was good for charities. Among the wealthiest individuals, many of whom have made their fortunes in high-technology businesses, giving is low. Of those making $100,000 or more, about a third reported giving away less than $1,000 annually. What’s more, although 47 per cent of the wealthiest households have made plans for their estates, only 11 per cent said they had named a charity in their will.

Donors were also less than generous in giving away stock. About a quarter of those surveyed reported receiving stock as part of their pay, but only 3 per cent said they had given shares to charity.

“We do have a strong pattern of giving, but we also have pockets of real stinginess,” said Peter Hero, president of Community Foundation Silicon Valley.

The Silicon Valley study also found that many residents have misgivings about charities’ business acumen. More than half of the households surveyed said that they would give more to charity if they thought non-profit groups were better managed.

The study of individual giving, conducted by Field Research Institute, surveyed 734 randomly chosen adults. An additional group of 160 households with assets exceeding $1-million — excluding the value of their homes — was also surveyed. Silicon Valley was defined as all of Santa Clara County, as well as parts of three other northern California counties.

For a free copy of “Giving Back, The Silicon Valley Way,” contact Community Foundation Silicon Valley, 111 West St. John Street, Suite 230, San Jose, Cal. 95113; (408) 278-0270; e-mail inquiries@cfsv.org. The report is also available on the community foundation’s Web site at http://www.cfsv.org/finrpt/finrpt8.htm.