High Net Worth in da House
The Center on Philanthropy at Indiana University completed a study in October 2006 of high net worth giving in the United States, sponsored by Bank of America. According to the study "High Net-Worth households, those with incomes of greater than $200,000 or assets in excess of $1,000,000, represent 3.1 percent of the total households in the United States." Despite their small numbers, the members of these households make two-thirds of all charitable contributions in the country.
More importantly for nonprofit theatres, 10.8% of all HNW households (including households that did not give) made donations to arts organizations. By comparison, only 2% of all households (including non-givers, and HNW households) gave to arts organizations.
But wait! There's more! Of the households that did contribute to charity (givers only) 70.1% of HNW households gave to the arts, and only 8% of total households (givers only) contributed to the arts. What does it all mean? Read the report...
If you're pressed for time, I'll give you my take: we already know that our major donors carry the weight of our theatres on their backs. What's more important to note, is those people are also more likely to support the arts altogether, ergo, soliciting even non-major donations from high net worth households will be more fruitful than trying to increase the number donations from every household on your mailing list. Statistically you're five times more likely to receive a gift from a HNW household on your list than from the list as a whole. It certainly changes my thinking about the structure of annual campaigns and how I might spend my postage line.
More importantly for nonprofit theatres, 10.8% of all HNW households (including households that did not give) made donations to arts organizations. By comparison, only 2% of all households (including non-givers, and HNW households) gave to arts organizations.
But wait! There's more! Of the households that did contribute to charity (givers only) 70.1% of HNW households gave to the arts, and only 8% of total households (givers only) contributed to the arts. What does it all mean? Read the report...
If you're pressed for time, I'll give you my take: we already know that our major donors carry the weight of our theatres on their backs. What's more important to note, is those people are also more likely to support the arts altogether, ergo, soliciting even non-major donations from high net worth households will be more fruitful than trying to increase the number donations from every household on your mailing list. Statistically you're five times more likely to receive a gift from a HNW household on your list than from the list as a whole. It certainly changes my thinking about the structure of annual campaigns and how I might spend my postage line.
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