Why do the Rich Give (and why they stop) - Part I

By now, many of you have probably read the Bank of America 2008 Study of High Net-Worth Philanthropy. Here's the lead

Wealthy Donors Cite Loss of Emotional Connection as Leading Reason for Discontinuation of Giving to a Charitable Organization

Nearly 60% of wealthy households who stopped giving to a charitable organization attributed their change in philanthropic behavior to "no longer feeling connected to the organization," according to initial findings released today from a new survey initiated by Bank of America.

This was a study of 700 givers with income greater than $200,000 and/or net worth of at least $1 million!

As I have often said, it's all about the emotional connection! Donors are motivated by what makes them feel good and surprisingly for all the naming opportunities, this study noted that only 5% were motivated by public recognition.

What did drive the giving? 81.2% said they wanted to give back and 66.9% wanted to make an immediate impact on the work around them. However, 46% believe that their philanthropy has a greater impact on their own personal fulfillment than on those who receive the gifts.

In the Wall Street Journal online commentary, Robert Frank guessed that these donors know that problems are so complex that only a Bill Gates or Warren Buffet might make a discernable impact.

He quoted Robert Carr, the voice mail tycoon, who was profiled on 60 Minutes about saving the Gorongosa national park in Mozambique and said: "I wanted to give back. But you know this project has done a lot more for me than I'll ever do for it. Coming to Africa and spending time here, learning from their culture which is rich and beautiful, is a blessing."

So what is our challenge? To be sure that our major stakeholders viscerally feel that connection to us, and, if intellectually they feel they are not making a significant difference, we can nourish their soul by the good they are providing our mission.