Enormous amount of literature in political science, sociology and economics argues that ethnic diversity and economic disparities hinder pro social attitudes and behaviors. Inspired by social identity and out-group threat theories this study tests if being surrounded by ethnic out-group will reduce charitable giving to that out-group among native Germans. This question is tackled by combining individual level data from Socio-Economic Panel with social indicators measured at the neighborhood level. Evidence that charitable giving to refugees among natives decreases in increasing immigrant share is reported. Importantly, this negative statistical association is driven by home-owners residing in the low home-ownership areas. Possible mechanisms underlying these results are discussed.