Younger, Female and Less Wealthy Investors Are More Likely to Help Japan

Philanthropic feelings toward Japan are running higher among women investors and those who are younger and less wealthy. Online giving through an established charity is their method of choice.

Forty-eight percent of women with investable assets of $500,000 or more said they are likely to donate money to victims of the March 11 earthquake and tsunami in Japan, reports Spectrem Group in its latest research. Forty-four percent of men said they planned to donate to Japan.

“These findings are consistent with research that shows that women tend to be more giving than men. They will even give money to others to the detriment of their own retirement savings,” said Catherine McBreen, managing director of Spectrem, a market research firm specializing in affluent investors.

Investors with $500,000 to $1 million in investable assets are more likely to donate to Japan than investors with $1 million or more. Fifty percent of the less wealthy investors said they were likely to give, compared to 44 percent of millionaires.

Retired affluent investors were less inclined to help Japan. Forty percent said they planned to help, while 47 percent of the non-retired were planning to give.

Most of the affluent investors who planned to make a contribution preferred donating online through an established charity such as the Red Cross. Sixty-seven percent said they were likely to donate online, while 7 percent said they would donate using their mobile phone.

The rate of donations to Japan is slower than after last year’s earthquake in Haiti and after Hurricane Katrina in 2005, said the Chronicle of Philanthropy. Ten days after the disaster Americans had donated more than $136 million. Nearly two-thirds of the total went to one group, the American Red Cross, the chronicle said. Nine days after the Haiti earthquake donors have given more than $355 million and nine days after Katrina they had given more than $740 million.

The advocacy group ConsumerReports.org advises investors making donations to Japan to make sure they are giving to a legitimate charity.

“Scammers can setup fake charities by snatching up Web addresses that sound official and related to the disaster,” the consumer group warns.  “Beware of unsolicited emails and calls, which may come from scammers trying to sound like a well-known charity.”

ConsumerReports.org also recommends considering the following when donating to Japan:

• Some legitimate charities may not have a presence in Japan, so make sure that you give to a charity that is able to provide assistance.
• Monetary contributions are best because food and other goods may be difficult to collect and transport.
• When giving money remember that some organizations merely collect money on behalf of other charities and some spend little time on their charitable programs when compared to fund-raising or administrative costs.

The Center for International Disaster Assistance, part of the USAID office of Foreign Disaster Assistance, and the advocacy group Charity Navigator can also provide information.

Copyright 2011 by MillionaireCorner.com