Study: The Wealthy Got 'Nervous,' Donated Less During Recession While Lower- and Middle-Income Americans Gave More
According to a new study, between 2006 and 2012, Americans with higher incomes became less charitable while lower- and middle-income Americans donated more.
The report released Monday by The Chronicle of Philanthropy titled "The Income - Inequality Divide Hits Generosity," found that those who made an annual salary of at least $200,000 "reduced the share of income they gave to charity by 4.6 percent from 2006-2012."
Americans who made less than $100,000, on the other hand, donated 4.5 percent more of their income from 2006 through 2012.
"The wealthiest aren't being persuaded to up their share of giving in the same kind of way the poor are," Stacy Palmer, editor of The Chronicle of Philanthropy, told The New York Times. "It makes it clear that the competition for dollars is really intense."
In an interview with Forbes, Palmer explained that the recession threw the wealthy off guard, making them "nervous and cautious" with their money. Therefore, less money was donated to hospitals, cultural facilities and universities.
Those with less income, on the contrary, felt pity during the recession, Palmer suggested. They tend to donate to social service organizations.
"Lower and middle-income people know people who lost their jobs or are homeless, and they worry that they themselves are a day away from losing their jobs," Palmer said. "They're very sensitive to the needs of other people and recognize that these years have been hard."
For example, in Jacksonville, Florida, 8.7 percent more of lower- and middle-income Americans' income was donated toward helping public schools, according to The Times.
"People felt so strongly about the campaign for the schools that people gave as much as they could at different income levels," Palmer said.
According to a summary of the report, wealthier Americans still donated more money in terms of literal numbers.
"The total amount they gave increased by $4.6-billion, to hit $77.5-billion in 2012, using inflation-adjusted dollars," the summary said.
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Follow Scharon Harding on Twitter: @ScharHar.
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