
Michaela Neumayr & Astrid Pennerstorfer, WU Vienna University of Economics and Business.
What amount of donations can you expect from people when fundraising for your organization? Who are the people who do not donate any money at all, and who are those who donate substantial amounts? Basically, charitable donations are considered to strongly vary across income classes, and fundraisers know that the amounts of individuals’ donations increase with their financial resources. But what proportion of income can you expect to be donated by people of different income groups? Which income groups are more ‘generous’, those with higher or lower incomes?
Such questions have been discussed in scholarly research since the 1990s and answers to these questions are surprisingly diverse and even contradictory. In the debate concerning the “charitable giving profile” all kinds of shapes have been proposed. Some argue that it follows a U-shaped curve, with individuals at both ends of the income distribution donating the highest proportions of their income. For the US, for instance, those below an annual income of 10,000 USD donate about 4.6% of their income, while those with an income higher than 150,000 USD give 2.2%, and those in the middle 1.4%. Other studies do not find that lower-income groups are more generous, but rather describe the charitable-giving profile as a flat curve with an upward slope for higher-income groups. Yet other studies doubt the upwards swing on the right-hand side and instead find higher relative donation levels for lower income groups. We could go on with an account of yet other assumed shapes of previous studies, but we stop at this point to tell you about our study.
Continue reading “How much of their income do people usually donate to charity?”


