New study shows poor give greater percent of income to charity
The less you have the more likely you are to give; that's what new research from the McClatchy group shows, backing up this long-held belief with hard data. According to the group's research, the poorest Americans give above their capacity, donating more in comparison than the most well off upper fifth of society. Not only does this group of low-income Americans give more of their income to charity, but double the percentage of income that the richest individuals in the study do.This report confirms the opinion I formed during years of collecting canned goods as a Boy Scout. While walking through neighborhoods on chilly fall mornings, it was quite obvious that families who themselves would be considered in need by many, donated bags of canned goods bursting at the seams. While there were also some full bags in the more "well to do" areas of town, the generosity that flowed from low and lower-middle class homes was hard not to notice, even for a 13-year-old.
Anecdotal evidence suggests that poor people give a greater percentage of their income because they know someone or have personally been in a situation of need in the past. These smaller donors play an important role in charitable giving by supporting others through formal and informal donations, supporting causes and individuals in need that might otherwise go un-noticed.
While you won't see these donor's names etched in stone like their fellow givers who can afford to donate millions, the memories of thank you's and touched lives will continue to reward our most generous donors.
Want to give back today? Get in touch with a local charity or find a cause to support using CharityNavigator.
Reader Comments (Page 1 of 1)
5-28-2009 @ 7:13AM
Jason said...
While the points in the article are certainly valid, there may be another explanation for this phenomenom. The wealthy may have become wealthy by practicing frugal lifestyles and tight money management. While the less wealthy may be managing their money poorly. This could explain why the wealthy are less likely to donate.
Reply
5-28-2009 @ 12:58AM
Jason said...
While the points in the article are certainly valid, there may be another explanation for this phenomenom. The wealthy may have become wealthy by practicing frugal lifestyles and tight money management. While the less wealthy may be managing their money poorly. This could explain why the wealthy are less likely to donate.
Reply
5-28-2009 @ 7:13AM
Lamont Cranston said...
More likely that they they inherited their wealth, or they live on the exploitation of others, or they have fat Uncle Sam contracts.
5-28-2009 @ 7:13AM
Matthew said...
Another thought is the wealthy are greedier and unwilling to part with money because they are too stingy. They aren't willing to give away what they think defines them as human beings.
Yes, it's true they may have better money management skills but greed is a bigger factor in why they won't (don't) give their money away.
Reply
5-28-2009 @ 10:20AM
Henry said...
Great lesson for us all to hear! We should be more generous with what we've been given. I heard it said once that if you don't share what you have when you're poor, being rich won't change that. We think when we get more money that we will start giving more money, but the opposite is true. Thanks!
Henry
Reply
5-30-2009 @ 10:49AM
Henry said...
Also, I think we should be very aware how we donate our time and money. Sometimes it's used unfairly or there is a better cause available.
Http://www.geothermalexperts.net
Reply
5-28-2009 @ 10:20AM
Arlen Owens said...
Wow, I had the exact same experience as a Boy Scout Leader! People with less gave more, people in the nicest neighborhoods gave little or nothing! My interpretation was that people on the bottom have to share to survive, rely on neighbors and friends, and have real compassion for those in need. Those who are successful, feel they have done it on their own (deservedly or not) and do not have to rely on others so much!
Many of of my most successful colleagues feel that no one should ever get any help at all, they disdain charity, and actually HATE those who are on the bottom! Coming from a poor background, I found that attitude amazing! What I find in the "least financially endowed" folks can only be described as good old American survivalism... acceptance of their lot, fierce frugality, ingenuity, and a constant effort to improve their lot! The poor are so much tougher and more resilient than the rich!
Reply
5-28-2009 @ 10:21AM
Matt said...
Lamont - you're clearly someone who has no money. Poor people always think that rich people MUST have inherited their wealth because there's no way they could have earned it by working harder and smarter than everybody else.
The truth about millionaires in the US is that 90% of them are first generation rich. That means that 9 out of every 10 millionaires made their own money.
Now, that doesn't excuse the miserly behavior of many rich people. I've noticed myself that some of the most generous people are bartenders and waitresses - people who work REALLY hard for their money.
Just goes to show that Jesus was right - it's harder for a rich person to enter heaven than it is for a camel to pass through the eye of a needle.
Reply
5-28-2009 @ 5:33PM
Brian said...
Matt, I couldn't have said it better myself. I don't know why people like to generalize the wealthy or executives of companies into a bunch of heartless greedy people that don't care nor give.
I do know that there in fact exists those types of people, but to generalize anecdotal evidence such as that, to make the rest guilty by association is short-sighted, misinformed, and an illogical assumption.
Sure there are some executives that cut themselves bonuses while their employees are hung out to dry (as the media portrays), but there are MANY executives and owners of companies who don't take pay checks for long stretches of time to ensure that their employees get paid first.
I am by no means ultra-wealthy, but I make a decent living with what I do. I have not donated to charity much as of late, but I have used much of my money to help close friends of mine who are currently struggling. That isn't tracked as "donating to charity" so does that define me as being "less human"?
5-28-2009 @ 7:07PM
Susan said...
Perhaps the rich have a bazillion dollars taken from their check each month in the form of outrageously high taxes to support entitlement programs. Consequently, they reduce the additional money to be paid out via donations, in order to save or invest. That means "give" it to companies to use as capital for innovation, which then creates jobs.
Or perhaps the wealthy are better connected than others in different socioeconomic classes, such that their contributions will never be seen by the door-to-door can food collector.
Reply