Survey: 60% of ‘millionaires’ believe they must ‘give back’ to society

America’s millionaires recognize that with wealth comes responsibility to help America through its challenges, according to survey findings by PNC Wealth Management, a member of The PNC Financial Services Group Inc. (NYSE: PNC).

More than half of millionaires feel an obligation to “give back” and few are concerned with their ability to give, according to the eighth annual Wealth and Values Survey, entitled “Responsibility and Money: How the Wealthy View Their Role in Society.”

Despite the continued trials of the U.S. economy since 2008, the number of millionaires who believe “I have an obligation to give back to my community” has remained stable. This year, 59 percent agree or strongly agree, the same number as in 2008.

Meanwhile, the number of millionaires concerned about their ability to give to charities has declined to 11 percent from 20 percent in 2008, according to the survey of 555 millionaires.

The survey also revealed that 22 percent intend to cut back on the amount they give to charity, while 46 percent plan no change and 21 percent plan to increase their giving.
The survey asked about billionaire Warren Buffett’s call on wealthy individuals to pay more in taxes as well as give more to charitable causes. Nearly half, 49 percent, said they agreed with Buffett but did not believe they “are in the same league” as he is, while more than one-fifth (22 percent) agree that they are able to help in the way Buffett suggests.

In addition, 83 percent believe that “those who have attained the kind of financial position I have” should continue to invest in private business and industry as the most efficient engine of societal improvement. At the same time, 70 percent believe they bear a special responsibility in society to help the less fortunate and 64 percent believe they should give substantial sums to charities to improve society.

The survey also indicated a doubling in the number of those who donated between $25,000 and $999,000 to charity in 2010. This year’s survey showed 24 percent while in 2008 it was just 12 percent.

Other findings:

• “If I were in charge…”: There is little consensus among millionaires as to how to improve the nation’s economic health. Almost one-third (31 percent) say that the single best idea for a better economy is to “reduce taxes on individuals and businesses,” while 20 percent support raising taxes on wealthy individuals. Other suggestions include: reduce the costs of Social Security, Medicare and/or Medicaid (15 percent), reduce the defense budget (15 percent), provide new economic stimulus by the government (10 percent), or none of the above, 8 percent.
• Leave me alone: Sixty-four percent of millionaires say they “want to be left alone by politicians” to enjoy their earned wealth however they choose, and 80 percent view reinvestment as key to improving society.
• Government issues: Despite the divergent opinions on policy, millionaires are united in their perception of how the government is functioning: three-quarters (76 percent) feel that the U.S. government has serious flaws in how it’s working and just one percent say it’s functioning well.'However, 85 percent say the U.S. political system has serious flaws while 47 percent believe the U.S. financial system is flawed. 
• A taxing issue: If taxes increase, nearly four in 10 millionaires would change their investment strategy and one in four would reduce philanthropy. Thirteen percent would work less, seven percent would work harder, while 41 percent would not change anything. 
• I’m doing well, but will my kids?: Almost three quarters (71 percent) of millionaires believe they are “much better off compared to parents at this same age.” However, only 10 percent believe their children will be better off when they reach the same age.

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