The Lutheran Community Foundation

The 2008 Bank of America Study of High Net Worth Philanthropy offers new insights into the philanthropy of wealthy donors.  Conducted by the Center on Philanthropy at Indiana University for Bank of America, the 2008 research follows an initial landmark study published through this partnership in 2006. 

The study randomly surveyed over 20,000 households in high net worth neighborhoods across the country.  High net worth in this study includes households with income greater than $200,000 and/or net worth (excluding primary residence) of at least $1,000,000.

Here are some of the findings:

• 98.2% of high net worth individuals give to charity annually.
• 52% of those surveyed relied on their financial advisor to establish gifts in 2007.  Financial advisors had the biggest influence over a donor's decision to use a giving tool like a charitable remainder trust, charitable gift annuity or donor advised fund.  This is a marked increase over the 2006 study, suggesting more financial advisors may be including charitable giving as part of their business.
• Only 5.4% of High Net Worth individuals consider themselves experts on charitable giving and therefore need advice when making giving decisions.
• 20% currently have a donor advised fund and another 20% said they would consider one in the next three years.  Donor advised funds continue to increase in popularity as people learn more about the benefits.  LCF offers a wide range of donor advised fund options.
• 93% rate sound business and operational practices as the most important factor when choosing charities to support.  LCF has earned the Charity Navigator 4-star rating for sound fiscal management for 3 years running.
• 95.9% teach their children about philanthropy and more than 40% allow them to make grant decisions for their donor advised fund or foundation.  Average child age is 34.  Donors who involve their children in their giving give, on average, three times more than those who don't.
• 80.5% say their children learned about giving through their religious activities.
• Most expect no change in their giving if there were no charitable deductions or if the estate tax were repealed.

A copy of the full study is available on Bank of America's website.

To learn more about incorporating charitable planning into your business, contact an LCF Charitable Gift Planner today at 800-365-4172 or via email.