Feb 02, 2009

Recession Changing Behavior Among the Wealthy

The recession has affected everyone, rich and poor alike. While the rich still have money to fall back on, I imagine (believe me, I only imagine) that it can be as hard to see 25% cut off a million dollar portfolio as a $10,000 one. In the first case, you've just said goodbye to $250,000, while in the second case, you've lost a "mere" $2,500.

How the rich are responding was the subject of an interesting USA TODAY article by John Waggoner on February 2, 2009, called "Even the wealthy feel tapped out." The title pretty much conveys it all, and the article focuses on the various luxury businesses (cars, condos, champagne) affected by the downturn.

But there's a bright spot in here for nonprofits, I think. The article says that even though the wealthy can still afford, say, fancy cars, they may be less likely to buy them, or anything else that looks ostentatious, in a down economy. To do so might look "declasse."

That's a great opportunity for nonprofits to give those with money a better way to spend their cash. Gala dinner, anyone? Or how about an eco-tour sponsored by your organization?