Is Giving the New "Bling"?
"When rising consumption of luxuries produces declining enjoyment of vast wealth, giving it away might be the best revenge," says George F. Will in his recent Washington Post column, "A Lexus in Every Garage." "Positional goods and services are inherently minority enjoyments. These are enjoyments—"elite" education, "exclusive" vacations or properties—available only to persons with sufficient wealth to pursue the satisfaction of "positional competition."
However, the bridge between the "haves" and "have nots" is shrinking. What used to be considered luxury items only for the minority—Gucci, Armani, Tiffany, and Lexus to name a few—are now finding their way into the hands of a large majority. The previously unattainable is now attainable; there were 9.5 million millionaires worldwide at the end of 2006.
So, what is this reality doing to the value of goods, or at least the perceived value of owning such goods? Luxury items have usually been indicators of "position." But with luxury goods losing their luster because a majority of people can now afford them, giving might just become the new "bling." Instead of purchasing certain clothes, wristwatches, handbags, or automobiles to set themselves a part from others this holiday season, wealthy people might perceive greater relative value in giving their money away.
The lesson for nonprofits: The luxury item of choice just might be your nonprofit's cause. 9.5 million is a lot of potential donors, seeking causes to support with great sophistication. Because more than 65% of donors will go online to research causes before making a donation, your web site should be a clear, accurate reflection of your organization's mission and needs. Consumption this season could face some stiff competition from philanthropy.
"When rising consumption of luxuries produces declining enjoyment of vast wealth, giving it away might be the best revenge," says George F. Will in his recent Washington Post column, "A Lexus in Every Garage." "Positional goods and services are inherently minority enjoyments. These are enjoyments—"elite" education, "exclusive" vacations or properties—available only to persons with sufficient wealth to pursue the satisfaction of "positional competition."
However, the bridge between the "haves" and "have nots" is shrinking. What used to be considered luxury items only for the minority—Gucci, Armani, Tiffany, and Lexus to name a few—are now finding their way into the hands of a large majority. The previously unattainable is now attainable; there were 9.5 million millionaires worldwide at the end of 2006.
So, what is this reality doing to the value of goods, or at least the perceived value of owning such goods? Luxury items have usually been indicators of "position." But with luxury goods losing their luster because a majority of people can now afford them, giving might just become the new "bling." Instead of purchasing certain clothes, wristwatches, handbags, or automobiles to set themselves a part from others this holiday season, wealthy people might perceive greater relative value in giving their money away.
The lesson for nonprofits: The luxury item of choice just might be your nonprofit's cause. 9.5 million is a lot of potential donors, seeking causes to support with great sophistication. Because more than 65% of donors will go online to research causes before making a donation, your web site should be a clear, accurate reflection of your organization's mission and needs. Consumption this season could face some stiff competition from philanthropy.
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