Most Americans plan to give generously over the holiday season, with wealthier individuals more likely to give than most, according to research from Spectrem Group.

Most Americans plan to give generously over the holiday season, with wealthier individuals more likely to give than most, according to research from Spectrem Group.

In a survey, over 80 per cent of millionaires said they plan to make charitable donations over the holidays, compared to 70 per cent of investors with a net worth (not including primary residence) of between $100,000 and $500,000. Many Americans with lower levels of wealth also plan to give this holiday: just under half of individuals with under $100,000 in assets plan to make donations.

Wealthier investors, unsurprisingly, plan to give more than their less-wealthy counterparts. For example, over a third of millionaires plan to make donations of $1,000 or more during the holiday. In contrast, only 5 per cent of investors with between $100,000 and $500,000 plan to give at that level. (Charitable donations generally refer to unplanned gifts, in contrast to philanthropy which is concerned with more significant and long-term giving.)

Meanwhile, Spectrem’s research highlighted that older, and particularly retired, investors are more inclined to give than younger investors. This is in spite of huge interest in philanthropy among the young and wealthy, as demonstrated by gatherings such as the Nexus Global Youth Summit in New York this September, which drew young philanthropists from all over the world with a net worth of some $100 billion (view here). 

Only recently, the destruction wrought by Hurricane Sandy underscored the importance of impromptu giving, focusing the world’s attention on relief and rebuilding efforts and encouraging individuals and businesses alike to dig deeply into their pockets. As examples from the financial services industry, JP Morgan Chase committed $5 million in grants to support charities focused on relief efforts, while UBS donated $1.2 million toward long-term relief and rebuilding efforts. Morgan Stanley offered to match employee contributions to the American Red Cross of up to $2.5 million, pledging a minimum donation of $1 million. The Bank of America Charitable Foundation pledged $1 million to support relief efforts, including $500,000 to the American Red Cross Hurricanes 2012 fund. One early estimate of infrastructure damage from the intelligence firm IHS put the cost at $20 billion.