The study looked at tax returns for people with reported earnings of $50,000 or more from the year 2008 – the most recent year for which data was available. The report found that for people earning between $50,000 and $75,000, an average of 7.6 percent of discretionary income was donated to charity. For those earning $200,000 or more, just 4.2 percent of discretionary income was donated.
Turns out lower giving among the rich likely has much more to do with where they live and who they live near.
As this accompanying article from the journal notes, when the rich are highly concentrated in wealthy enclaves, they’re less likely to give as compared with the rich living in more economically diverse neighborhoods. The report found that in neighborhoods where more than 40 percent of taxpayers reported earning $200,000 or more, the average giving was just 2.8 percent of discretionary income.
In other words, concentration of wealth is also isolation from the less fortunate.