The Wealth Gap in Philanthropy
As wealth has become much more concentrated among the rich, it appears that the kinds of charities wealthier people prefer are seeing disproportional growth. A report this summer from Indiana University found that, last year, donations to education and arts-and-culture causes grew more than for nearly any other category, with a researcher noting that those categories typically include organizations and institutions supported by wealthy donors.
According to National Philanthropic Trust, meanwhile, the average size of donor-advised funds is nearly $300,000, suggesting that they’re disproportionately popular among the rich. The Chronicle of Philanthropy found that the Red Cross, Goodwill Industries International and the Salvation Army all saw their donations fall last year, along with United Way—which Stacy Palmer, editor of the Chronicle of Philanthropy, said might have something to do with those organizations’ dependence on middle-class donors.
