Perhaps everyone, especially the wealthiest among us, can use a good strategy for giving so that more money goes where it's needed most.
Perhaps everyone, especially the wealthiest among us, can use a good strategy for giving so that more money goes where it’s needed most.

A strategy for giving

In the emergency room and on the battlefield, it’s easy to appreciate the wisdom of a triage system: Those with the greatest need are helped first. But few of us, particularly the wealthy, apply that same type of thinking when it comes to making donations to charities.

December marks the height of the charity season, when Americans give the bulk of roughly $290 billion donated annually by individuals. Various studies have pointed to an overall increase in charitable giving in recent years, although new tax laws might adversely affect that trend.

Due to the higher standard deduction, fewer Americans will itemize donations and that could lead to the unintended consequence of less money going to charity. Notably, however, the group least affected by the new tax rules is the one that makes the largest contributions: wealthy individuals earning over $200,000 a year.

So which causes do these affluent folks support, and how do they make their gifting decisions?

The U.S. Trust study, published by Bank of America and Indiana University, reveals several troubling answers. First, roughly half of wealthy donors don’t have a strategy for giving. They are guided by relationships with organizations such as colleges, churches and foundations and by their own past patterns of giving. That’s understandable but hardly the definition of a triage system.

Second, nearly half of wealthy people, 46 percent, make no contributions whatsoever to “basic needs” such as food and shelter. Even more concerning is that among the 54 percent who did, the amount given represented only 19 percent of the total. In other words, although a majority of rich people see human need as important, they fail to give it the majority of their charity budget.

Statistics show that the poorer you are, the more you give, proportionately, to basic needs. Why is that? Is it because poorer people more clearly recognize the plight of those even less fortunate?

Maybe it’s because wealthy Americans believe that government is doing enough to aid the hungry and homeless. Perhaps some among the affluent are suspicious of the poor, believing that they game the system and don’t take enough responsibility for their plight.

Such thinking only obfuscates the bottom line: Despite an improving economy and a drop in unemployment, roughly 40 million Americans live in poverty. The latest figures from the U.S. Census Bureau also show that child poverty remains alarmingly high, due in part to the number of single-parent homes coupled with the fact that women continue to earn less, on average, than men.

Although poverty figures differ depending on the metrics, there is general agreement that the U.S. has far more poverty than most developed countries such as Canada and in the U.K. How wealthy must we, as a nation, become before this stops?

As I write this at my office in California, I’m also overwhelmed by the fact that more than 14,500 of my neighbors to the north have lost their homes and businesses in the Butte County wildfire. And that’s just the latest in a swath of disasters from Puerto Rico to Florida, the Carolinas, Texas, and California that have left many people in need.

The U.S. Trust survey says just 1 percent of charitable donations by the wealthy goes to disaster relief efforts.

So I wonder, is this the best time to write a check to help the school band get new uniforms? For the super rich, does your alma mater really need another building with your name on it?

There are many good causes, no doubt about that, and it would be foolish to cut them out of our charity budgets. But perhaps everyone, especially the wealthiest among us, can make a strategic adjustment so that more money goes where it’s needed most.

As Orwell might have framed it in this season of giving, all charities are equal, but some are more equal than others.

The viewpoints expressed above are those of the author and do not necessarily reflect those of The Independent.

How to submit an article, guest opinion piece, or letter to the editor to The Independent

Do you have something to say? Want your voice to be heard by thousands of readers? Send The Independent your letter to the editor or guest opinion piece. All submissions will be considered for publication by our editorial staff. If your letter or editorial is accepted, it will run on suindependent.com, and we’ll promote it through all of our social media channels. We may even decide to include it in our monthly print edition. Just follow our simple submission guidelines and make your voice heard:

—Submissions should be between 300 and 1,500 words.

—Submissions must be sent to editor@infowest.com as a .doc, .docx, .txt, or .rtf file.

—The subject line of the email containing your submission should read “Letter to the editor.”

—Attach your name to both the email and the document file (we don’t run anonymous letters).

—If you have a photo or image you’d like us to use and it’s in .jpg format, at least 1200 X 754 pixels large, and your intellectual property (you own the copyright), feel free to attach it as well, though we reserve the right to choose a different image.

—If you are on Twitter and would like a shout-out when your piece or letter is published, include that in your correspondence and we’ll give you a mention at the time of publication.

Articles related to “A strategy for giving”

Tips for a safe holiday season

Veterans’ charities that misled donors and tips to give wisely instead

Don’t get scammed by predatory businesses: BBB tips for after a fire

Click This Ad
Previous articleNine tips for mindful eating
Next articleLe Riots
Peter Funt
In print and on television, Peter Funt continues the Funt Family tradition of making people smile – while examining the human condition. After 15 years hosting the landmark TV series “Candid Camera,” Peter writes frequent op-eds for The Boston Globe and The Wall Street Journal as well as his weekly column distributed by the Cagle Cartoon Syndicate. His writing contains the same pointed social observations that have made “Candid Camera” so popular since its invention by Peter’s dad, Allen, back in 1947. His new book, "Cautiously Optimistic," takes America's temperature in six-dozen essays, guaranteed to make readers think and smile. It's available at Amazon.com and through CandidCamera.com. Peter is a frequent speaker before business groups and on college campuses, using the vast “Candid Camera” library to bring his points to life. His newest presentation for corporate audiences, “The Candid You,” draws upon decades of people-watching to identify factors that promote better communication and productivity. Details about Peter Funt’s speaking engagements are available at: www.CandidCamera.com. See http://www.youtube.com/watch?v=naYXOGIktsw for video. Peter hosted the newest versions of “Candid Camera” in recent years with Suzanne Somers and Dina Eastwood, with complete collections now available on DVD. Peter Funt actually made his first appearance on “Candid Camera” when he and the legendary series were each just three years old. Peter posed as a shoeshine boy who charged $10 per shoe! Since that time he has appeared in hundreds of “Candid Camera” sequences, hosted over 200 network episodes. In addition to his hidden-camera work, Peter Funt has produced and hosted TV specials on the Arts & Entertainment and Lifetime cable networks. He also spent five years as an editor and reporter with ABC News in New York. Earlier in his career, Peter wrote dozens of articles for The New York Times and TV Guide about television and film. He was editor and publisher of the television magazine On Cable. And he authored the book "Gotcha!" for Grosset & Dunlap on the lost art of practical joking. Peter’s essay on the evolution of television is included in “The Story of American Business,” published in 2009 by Harvard Business Press. Peter also follows in his father's footsteps as President of Laughter Therapy Foundation, a non-profit organization started by Allen Funt in 1982. Drawing from the Candid Camera library, Laughter Therapy sends special videos, at no charge, to critically ill people throughout the U.S. When Peter took over as host of the CBS specials, "Variety" wrote: "The latest new 'Candid Camera' specials seem to be getting funnier. Peter Funt is as personable as his dad..." Following Candid Camera's Battle of the Sexes special, "The Hollywood Reporter" observed: "This show is great fun. Peter Funt has a remarkably effective presence." Peter Funt received his degree in journalism from the University of Denver. In 2010 he returned to the Denver campus to be honored as a Master Scholar in Arts and Humanities. He is a past winner of the annual Silurian's Award for radio news reporting, for his ABC News coverage of racial disturbances in Asbury Park, NJ. Peter is founder of the Monterey County Young Journalists program in California, which provides hands-on training for high school students pursuing careers in news. He also inaugurated the Courtroom Journalism competition in Monterey County in conjunction with the Lyceum Organization, and conducts a similar statewide event for the Constitutional Rights Foundation in Los Angeles, as part of its Mock Trial program. Peter resides in Central California with his wife, Amy, and two children, Stephanie and Danny. His favorite pastimes are golf, baseball, tennis and people-watching.

LEAVE A REPLY

Please enter your comment!
Please enter your name here