Rich Is Out, Saving Is In

Whoa...The number of High Net worth Individuals (HNIs) has gone down by 15%, falling to 8.6 million globally. This is the 2008 number, reported by Merrill Lynch and a French company, Capgemini.

The numbers are even worse among ultra-HNIs, those people with assets of $30 million or more. The number of those individuals has fallen by 25%. According the report, the HNI group has lost two years of growth and is back to the levels of 2005.

North America lost the most millionaires--19% in the number of people who have assets of at least $1 million, excluding their primary residence.

At the same time, for most of us, buying decreased and the savings rate increased. Even though our income increased about 0.5%, consumption decreased by about 0.1%. Our personal savings rate increased to 5.7% in April, the highest in 14 years.

What are the implications for philanthropy and charitable giving? It won't be good, but it may be that the middle class, or merely "well off," will be able to do more, while the largest philanthropists are likely to keep giving, albeit at lower levels. According to Giving USA, charitable giving in 2008 was down substantially, but it could have been worse. The pullback in charitable contributions has not reached the levels of the Great Depression, and probably won't.

What is the outlook for your organization? Are things getting worse or better?