Before I reply, let me first say how wonderful it is that you have become more charitable!
Now let's look at the actual facts, because there are always going to be anecdotes of people who are exceptional.
Studies over the past few decades have consistently found that
lower-income individuals tend to give a higher percentage of their income to charity than the wealthy. SURPRISE! I asked ChatGPT to give me a breakdown of the research:
By Income Bracket (Percent of Income Donated)
- Poor (lowest 20%): Give around 3% to 5% of their income on average.
- Middle class: Give about 2% to 3%.
- Rich (top 20%): Give around 1.3% to 2.1%, though this varies widely depending on the study.
- Ultra rich (top 1%): Give less than 1% on average — although some give very large sums in absolute terms (e.g., Bill Gates), they often give a smaller percentage of their wealth.
Key Findings from Major Studies
- The Chronicle of Philanthropy (2012): People earning $50,000–$75,000 gave an average of 7.6% of their income, while those earning $100,000 or more gave just 4.2%.
- UC Berkeley & Indiana University studies: Found that lower-income Americans donate more generously relative to their income, often motivated by empathy, community solidarity, and religious commitments.
- Harvard Business School: People with lower income were more likely to help a stranger or give to a cause, even though they had less disposable income.
Why Might the Poor Give More (Proportionally)?
- Empathy and identification with need: They understand financial hardship firsthand.
- Community reliance: Stronger communal or religious ties often encourage mutual aid.
- Trust in direct impact: They may believe their donations make a more immediate difference.
- Less hoarding behavior: The wealthy are often more focused on wealth preservation, tax strategy, or legacy-building.