Public concerns about economic inequality are large and growing, and they have been shown to affect people’s charitable giving and volunteering. While empirical literature addresses this issue, it provides little evidence on the mechanisms that might explain this relationship. Numerous hypotheses from different disciplines have been proposed, with the social disintegration hypothesis, the conflict hypothesis, the relative power hypothesis, and the inequality aversion hypothesis among the most commonly suggested ones. In this study, we apply mediation analysis to survey data from Austria and Germany (N=1691) to assess which of these mechanisms explain the relationship. Our results support the social disintegration hypothesis and the inequality aversion hypothesis: Individuals that completely agree that income inequality is too high have about a 1 percentage point lower probability to give to charity (volunteer) due to the indirect relationship through generalized social trust, and about a 8 (7) percentage points higher probability to give to charity (volunteer) due to the indirect relationship through impure altruism, when compared to those that completely disagree that income inequality is too high. In addition, our results reveal an unexpected differential role of the conflict hypothesis, which shows a negative relationship for charitable giving but not volunteering.