Giving: A Luxury Or A Need?
Yesterday The Agitator asked how donors might be sizing up their financial situation these days, given that some surveys indicate increasing optimism about the economy. Is the glass half-empty, or half-full?
Here’s an article from the Washington Post that looks more anecdotally at the current spending attitudes of the top 20% of U.S. households in terms of income. The average income for these households is $150,000.
The gist of the article is that any recovery won’t really take off until these households open their wallets and pocketbooks. Why? Because the 20% of high income HHs make 40% of all consumer expenditures. And high end retailers don’t yet see them back in the marketplace.
The article notes that those with high incomes tend to have their wealth tied up in real estate and equities, and until these assets look like they are rebounding with some sustainability, spending psyches of the wealthy will remain cautious.
That might suggest that "rank & file" donations will show faster recovery than major gifts.
Says the CEO of Nieman Marcus: "The affluent customer does not really need anything. She has always shopped for want." Indeed, the retail categories that have help up best during the recession have been those involving needs, versus wants.
So what about it? For donors — major donors in particular — is giving a "want" or a "need?"
Tom
Behavioral Science Q & A
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