High Net Worth Donors: Why They're Not Giving More
May 2010

It’s the economy. They don’t believe in our cause. Too many other nonprofit organizations are approaching them for funding. We cite many different explanations for why high net worth (HNW) donors who can give much more, don’t. But is there any truth to these claims? Knowing why a donor does or does not give can help nonprofit organizations develop a more efficient major giving program.

A recent report, which is said to be the largest of its kind to date, sought to get at the reality of what prevents the wealthy from higher levels of giving. The findings were based on an in-depth study of 500 HNW individuals in the U.S. and UK, and their attitudes and approaches toward philanthropy.

Some of the salient points in the report include:

• Even among high levels of wealth, the subjective sense of financial security is the first barrier to giving;
• The absence of specific values and motivators (religious, familial legacy, and/or societal reasons) actually inhibit higher-levels of giving among the wealthy;
• Efficiency of a nonprofit organization matters to HNW donors, and will become more important; and
• Despite the recent decrease in donations, 49% of high-level donors are planning to give the same amount as last year, and 26% were planning to give more in support of charitable causes during this economic downturn.

For the full report, click here.

Schultz & Williams is a national consulting firm based in Philadelphia providing management, fundraising and marketing consulting for nonprofit organizations, along with full-service direct marketing, database and creative/production services.