Donating Time Can be Just as Valuable to Charities

At first glance, $3.3 billion in charitable donations is an impressive number. That’s the amount that 54 of America’s ultra-wealthy donated in 2010. But according to the Chronicle of Philanthropy, this is the smallest sum since it began tracking the country’s biggest donors in 2000.
The Chronicle speculates fears of a double-dip recession and uncertainty over the federal estate tax (which has since been resolved) are chiefly to blame. But the good news is that with the economy on the rebound, the wealthy are once again putting their money where their pledges are.
But it’s not just money they donate. They are also giving of their time. According to our research, 37% of households with a net worth of $25 million, not including primary residence, gave up to 50 hours of their time. Sixteen percent gave up to 200 hours, while 15% gave more.
Households with a net worth between $5 million and $25 million gave an average of 70 hours a year to charitable causes. While almost a third gave less than 40 hours of their time, 29% gave between 41 and 50 hours, and 21% gave between 101 hours and 500 hours. At this wealth level, the youngest investors ages 55 and under, were the most likely to give more of their time (only 19% gave less than 40 hours, as opposed to 63% of older investors).
Millionaire households with a net worth between $1 million and $5 million, not including primary residence, give an average of 137 hours. Twenty-nine percent give less than 40 hours, while 30% give between 41 and 50 hours. Nineteen percent give between 101 and 500 hours. At this wealth level, younger investors are most likely to give 50 hours or less of their time, probably because they are still working, while the oldest and wealthiest investors, ages 66 and up, with more time (and money) on their hands, are most likely to give between 101 and 500 hours.
Non-profit organizations, hit hard by the recession, are just as in need of volunteers as they are of donations. How much time a year do you give to charitable causes? To what cause do you volunteer. Let us know.