Study: Affluent Increasing Charitable Giving
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA report from BMO Private Bank says about a quarter of affluent Hoosiers are increasing their charitable giving this holiday season. The study suggests, on average, high-net worth individuals will donate more than $4,800 to charity this season.
December 11, 2014
News Release
Indianapolis, Ind. — Many affluent Indiana residents plan to boost their holiday donations and spending this year compared to years past, according to the results of a study released today by BMO Private Bank. The study is part of BMO Private Bank's second annual Changing Face of Wealth series, which examines trends among high-net-worth individuals (those with investible assets of $1 million or more).
Philanthropy continues to play an important role this holiday season among the affluent in the state, with survey results revealing that:
–On average, high-net-worth Indiana residents will give $4,875 to charities this holiday season, with 25 percent donating more than in 2013 and only 3 percent of respondents planning to give less. The rest plan to donate about the same amount.
–Seventy-eight percent will make cash donations, 65 percent will give clothes, 43 percent will donate household goods and 53 percent will give canned food or gift baskets.
–Fifty percent plan to volunteer.
“It's encouraging to see the state's affluent are stepping up this holiday season and donating to worthy causes in order to help the less fortunate,” said Chad Cassinelli, Managing Director, BMO Private Bank, Indiana. “As we spend time with family and friends during this time of year, it’s important to share some holiday cheer with charities that help make our community a better place to live for all.”
Holiday Spending to Surpass $5,500 Among Affluent Indiana Residents
The study also found that high-net-worth individuals in Indiana are planning to spend, on average, $5,514 this holiday season on the following:
–Gifts $3,428
–Trips/Travel $1,554
–Entertainment $368
Nearly half (45 percent) of respondents indicated they intend to spend more than they did in the years prior to the 2008 recession, and 8 percent indicate plan to spend less.
The study also found that affluent Hoosiers plan on buying an average of ten gifts, spending an average of $512 per gift—making them among the most generous of high-net-worth Americans.
Key National Results:
–High-net-worth Americans will give an average of $12,394 to charities this year. Of this amount, an average of $3,631 will be given over the holiday season, with 28 percent donating more than in 2013, five percent giving less and the rest donating about the same amount.
–Affluent Americans plan to spend an average of $10,525 on gifts, travel and entertainment during the holidays; $4,459 will go towards gifts and $3,385 will be spent on travel.
–Forty-three percent indicated they intend to spend more than they did in the years prior to the 2008 recession, and just 9 percent indicate they plan to spend less.
–High-net-worth Americans plan to buy gifts for an average of 16 people, with 42 percent reporting plans to buy gifts for ten or more people and plan to spend at least $100 per gift.
Survey results cited here are from online interviews with a sample of 493 Americans 18 years of age and older who have at least $1 million in investible assets. Surveys were conducted between October 15 and October 28, 2014.
About BMO Private Bank, a part of BMO Financial Group
BMO Private Bank offers a comprehensive range of wealth management services that include investment advisory, trust, banking and financial planning to meet the financial needs of high-net-worth clients. Through integrated teams of experienced financial professionals, BMO Private Bank helps its clients realize their financial and lifestyle goals with solutions that are custom tailored and delivered with the highest level of personalized service.
BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location.
Source: BMO Financial Group