LAS VEGAS – Nevadans with a net worth of more than $1 million make up only 0.2 percent of the state’s population but account for more than 27 percent of its reported charitable contributions, according to a report from The Private Bank by Nevada State Bank.
The third in the bank’s series of monthly reports prepared in conjunction with local market research firm Applied Analysis focused on charitable giving by Nevadans with a household net worth of at least $1 million.
Russell Price, executive vice president of The Private Bank by Nevada State Bank, said the issue is not only important around the holidays.
“Philanthropy is a value shared by The Private Bank and its customers year round,” Price said. “That being the case, we’re keeping a particularly close eye on how Washington lawmakers deal with the fiscal cliff. Limiting or even eliminating tax deductions could have significant impacts on households with a high net worth, which contribute an average of nearly $140,000 each year to charities. These dollars fund some of the most critical social services in the state. Preserving the ability for wealthy families to support causes they are passionate about is critical to our state’s future.”
Applied Analysis’ Jeremy Aguero was the lead analyst on the research effort. He found that wealthy Nevadans tend to be more charitable than their counterparts across the country, though most of their contributions leave the state. Of the $3.4 billion in large donations Nevadans donated to all charities last year, Aguero said about $900 million of that total went to organizations within the state.
“Oftentimes, people suggest that Nevadans are less generous when it comes to charitable giving, but this certainly cannot be said about the high net worth segment of the population,” he said. “Nevada’s high net worth households actually contribute more than their counterparts in other states.”
Key findings from this month’s report include:
- Citing the latest Internal Revenue Service statistics for Nevada, the report found that 1.8 percent of total income in the state was written off for charitable contributions. This represents an average charitable contribution per tax return of $957. Nevadans with incomes greater than $1 million deducted 3.0 percent for charitable contributions. Aguero said the average annual contribution from Nevada’s high net worth households was “a very significant” $138,320.
- Nationally, between 2000 and 2010, more than $359.3 billion was given in publicly announced large donations to charities. Of these donations, $1.07 billion (0.3 percent) was received by organizations in Nevada.
- Higher education is the leading beneficiary of charitable donations in Nevada, as it is nationwide. From 2000 to 2010, higher education received 44.3 percent ($1.5 billion) of all charitable donations in Nevada, compared to 27.5 percent ($90.7 billion) of all charitable donations nationally. After higher education, Nevadans gave 13.3 percent of their gifts to causes focused on the arts, culture, and the humanities ($455.5 million), 10.2 percent to human services ($348.2 million), 7.3 percent to health ($249.3 million), and 25.0 percent to all other categories ($854.9 million).
The Private Bank publishes the “High Net Worth Report” monthly. Briefings are available on Nevada State Bank’s website at www.nsbank.com/HNWreport or by contacting The Private Bank directly at 702.855.4812.
About The Private Bank by Nevada State Bank
The Private Bank by Nevada State Bank provides a full range of personalized financial services, including deposit and lending services, wealth planning and investment management. The Private Bank by Nevada State Banks serves high net worth and high-income clients. The Private Bank by Nevada State Bank is an unincorporated division of Nevada State Bank that provides specialized banking services to significant net-worth clients. Nevada State Bank is a full-service retail bank that has been chartered by the state of Nevada and is insured by the FDIC.
About Nevada State Bank
Nevada State Bank, with assets of more than $4.1 billion, is the largest state-chartered bank in Nevada. A full-service bank with 52 branches statewide, Nevada State Bank offers a complete range of consumer, private and business banking services. It is a subsidiary of Salt Lake City-based Zions Bancorporation (Nasdaq: ZION), one of the nation’s premier financial services companies. With affiliates in 10 Western and Southwestern states, 136-year-old Zions Bancorporation has assets of $51.3 billion. For more information on Nevada State Bank, call 702.383.0009 or access www.nsbank.com.