Recent findings provide those responsible for charitable giving with new insights on how to position their fund raising efforts based on the rationale affluent investors use for deciding whether or not a cash donation will be made to a specific charitable organization.
Rhinebeck, NY – April 2, 2012 – Phoenix Marketing International (Phoenix), one of the fastest growing research companies in the U.S., announced today findings from its monthly study among affluent individual investors age 21+ with $100K+ in investable assets, exclusive of 401(k) or similar employer-managed retirement plans.
Affluent investors participating in the March 2012 monthly Phoenix brand health and advertising performance study reported that they typically donate less than $2.5K in cash each year to one or more charitable organizations. The amount of annual cash donations does of course increase among higher income households, but not exponentially. Phoenix research shows that one-third of U.S. households with annual income in excess of $150K donate at least $5K annually and about one-in-six donate over $10K.
In addition to offering a fresh perspective on charitable giving among the affluent, the Phoenix study also provides insight on investors' rationale for making charitable donations and their criteria used to decide whether or not a cash donation will be made to a specific charitable organization. "Affluent investors are certainly altruistic, as the most frequent reasons given for making cash donations were to help other people in need and because they believe in an organization's mission," stated Cait Robbins who is the Phoenix analyst responsible for the monthly U.S. study. Other cited reasons for donating funds include "support of a good cause, to fulfill a religious obligation, or simply because it is the right thing to do," adds Robbins.
With so many charitable organizations in need, especially during recent years of budgetary challenges among non-profit organizations, the Phoenix study provides those responsible for charitable giving with new insights on how to position their fund raising efforts. For example, about one-in-four donors expect transparency with how their money will be used and, more specifically, information on the relative share of their donation that will be allocated to benefactors versus the organization's administration. In addition, donors seek detailed knowledge of the services provided by a charity and for whom. "Overall, a connection must exist between the organization and affluent investor such that the mission is perceived as important by the donor, that they in turn believe in the organization, and investors see their cash going to a worthy and legitimate cause," explains Robbins.
The Phoenix study polls 2,100+ affluent individual investors each month about their impression and consideration of numerous financial services brands including mutual fund companies, full-service and discount brokerages, insurance companies, and banks that sell investment services and products. A partial list of tracked brands includes AIM Investments, American Century Investments, American Funds, Ameriprise Financial, Bank of America, BlackRock, Charles Schwab, Edward Jones, E*Trade, Fidelity, Franklin Templeton, Genworth Financial, ING DIRECT (Shareholder), iShares, Janus, and John Hancock.
Other companies for which Phoenix has multi-year history on brand health and advertising performance include Merrill Lynch, MetLife, Morgan Stanley Smith Barney, Oppenheimer, Prudential Financial, Putnam, Raymond James, Riversource, Scottrade, T. Rowe Price, TD Ameritrade, TIAA-Cref, UBS, USAA, Vanguard, Wachovia, Wells Fargo Bank, and Wells Fargo Advisors.
Research Analyst, Syndicated Research