Charity is usually thought of as something for people who have more than enough to give. However, it doesn't seem like that is always the case.
Wealthy Americans are donating less to charity, while poorer Americans are donating more, according to a new report by The Chronicle of Philanthropy. The study found that Americans that earned at least $200,000 a year gave nearly 5 percent less (as a percentage of their income) to charity in 2012 than in 2006, whereas those who made less than $100,000 and $25,000 annually increased their donations during that same period by 5 percent and nearly 17 percent, respectively.
The Chronicle of Philanthropy arrived at the results by analyzing data from the Internal Revenue Service from Americans who itemized deductions, including charitable gifts in 2006 and 2012. The data measured giving relative to adjusted gross income and included about 80 percent of individual donations to charity in those years.
You'll notice that the time period during which this study takes place follows the recession's impact on charitable donations among Americans. The reason for the unexpected results of the study is because individuals with higher incomes tend to give proportionately less when economic times are tough, The Chronicle of Philanthropy's Editor Stacy Palmer told Forbes.
"The downturn was a shock to so many of them, and they've been nervous and cautious," she told Forbes.
On the other hand, losing a job or becoming homeless may be more relatable for those with middle to lower incomes, prompting people in those socioeconomic groups to give more during a recession, according to Palmer. Being religiously affiliated may also inspire them to give more.
However, in absolute terms of how much money richer Americans donated in 2006 and 2012, donations actually increased by $4.6 billion, or $77.5 billion when you adjust for inflation. Individuals who earned less than $100,000 gave $57.3 billion in 2012. Americans donated $180 billion to charity in total in 2012, according to the study.
The biggest declines in giving occurred with residents of the nation's largest cities, including Philadelphia, Buffalo, N.Y., Los Angeles, Minneapolis-St. Paul and Washington, D.C. Residents of Salt Lake City were the most philanthropic, giving away more than 5 percent of their incomes. This is probably due to the large Mormon population of that metropolis, which is encouraged to donate at least 10 percent of their incomes to charity. Although Las Vegas is known as Sin City, perhaps all of the money people are earning from gambling helped make residents more generous. This city had the biggest increase in charitable giving in 2012, giving more than 15 percent of their incomes to non-profits.
