US Trust Report Shows Who Is Most Likely To Give To Political Causes

Tom Burroughes

14 October 2016

As the clock ticks down towards the Nov 8 Presidential elections, a report by US Trust finds that high net worth senior US citizens aged 70 or more and wealthy LGBT individuals are more likely to contribute funds to political campaigns than other members of the population.

Preliminary figures issued by US Trust to Family Wealth Report, ahead of publication of full details on Oct 25, shows one out of four wealthy donors gave financially to a political candidate, campaign or committee last year or plan to do so during the 2016 election season. Among this group, donors over the age of 70 and LGBT individuals were more likely to give to a political candidate or campaign.

When looking at such giving both by political party and political ideology: Democrats were more likely to give than Republicans ; and Liberals were more likely than Conservatives and Moderates .

Those who gave financially to a political candidate or campaign reported doing so because the view it as a chance to exercise their voice ; hope to influence the outcome of elections , and believe the candidate can make a difference – African Americans more so than individuals of other races.

The main reasons why 76 per cent of wealthy donors have not and don’t plan to make political contributions during this election season include: Feeling such contributions would have little to no impact when compared to corporate contributions and contributions from Political Action Committees ; believing such contributions won’t make a difference ; and not having a particular candidate they would endorse .

The report, called the 2016 US Trust Study of High Net Worth Philanthropy, is a study of giving and volunteering trends, behaviors, attitudes and priorities among wealthy American households.
Since 2006, this study has been written and researched with the Indiana University Lilly Family School of Philanthropy.

The sixth in this series of biennial studies is based on a survey of more than 1,500 US households with a net worth of $1 million or more and/or an annual household income of $200,000 or more.

Among preliminary findings were that 63 per cent of wealthy donors gave to “basic needs” organizations last year - making it the charitable subsector supported by the largest percentage of high net worth households. Additional causes supported by the greatest percentages of wealthy donors included Religion , Education , the Environment and Health .

Brace for impact
When asked what they believe has the greatest potential for positive impact on society, wealthy donors cited charitable giving and volunteering above all else. The next largest percentage of respondents believe voting for a political candidate who shares their ideals on topics important to them may have the greatest impact – this was cited by twice as many Democrats as Republicans . Other interesting findings on the topic of impact include:

-- In an era of massive philanthropic commitments from the likes of Bill and Melinda Gates, Warren Buffet, Mark Zuckerberg and Priscilla Chan and others, twice as many wealthy donors believe that smaller donations from many donors have a greater likelihood of changing the world than do larger donations from the wealthiest Americans ; however most respondents are unsure which will have a greater impact ; and

Impact investing has some impact on philanthropy. This study found that, among the 33 per cent of wealthy donors who participate in impact investing, three out of five approach it as something they do in addition to their existing charitable giving, whereas 34 per cent do so in place of at least some of their charitable giving. And just 5 per cent of wealthy donors participate in impact investing in place of all of their charitable giving.

Among the wealthy, volunteering with a non-profit organization has a strong correlation with giving to that organization. A large majority of these individuals give financially to at least some of the organizations with which they volunteer, while half give to most, if not all, of the organizations where they volunteer.
In 2015, 50 per cent of wealthy individuals volunteered their time and talents to charitable organizations they care about .
Among wealthy individuals who currently volunteer, 90 per cent say they plan to do so as much or more over the next three years – with younger individuals and baby boomers being the most inclined to maintain or increase their level of volunteerism. Also promising, among those who did not volunteer last year, 39 per cent% plan to do so during the coming years.

When asked what factor would most influence their plans to volunteer, wealthy individuals cited: Having the time to do so ; the needs of the organization where they volunteer ; whether or not they feel their volunteer efforts are making a difference ; and whether or not they enjoy their volunteer experience .