How America Gives is an analysis of the giving patterns of Americans who earn $50,000 or more annually and who itemize charitable deductions on their income-tax returns. The itemized giving of these taxpayers represents nearly 80 percent of all individual charitable contributions and offers the best possible view into giving at local and regional levels.
The Chronicle analysis examines giving in states, metropolitan areas, and counties based on data aggregated from itemized tax returns filed through December 2015 into IRS Statistics of Income data. The key measure is the giving ratio: This is the total of a locality’s charitable contributions as a share of its total adjusted gross income. For instance, if itemizing taxpayers in a given area earned on average $100,000 and gave away $3,000, that area’s giving ratio would be 3 percent.
Within each state, metro area, or county, we also determine the giving ratio for people who itemize in each of four income groups: $50,000 to $74,999; $75,000 to $99,999; $100,000 to $199,999; and $200,000 and more.
To compare giving in metro regions across the country, we divided them into four groups based on population. We then established two benchmarks in each income group: The average giving ratio in its population group and the state’s giving ratio.
The Chronicle examines giving trends nationwide through exclusive analysis of Internal Revenue Service data. See charitable-donation figures from every state, metropolitan area, and county.
Using these benchmarks, we project an area’s “giving opportunity” — how much that community would donate to charity if all its income groups were giving at the benchmark levels. New York, for example, could see another $2 billion in giving.
We do not project the giving opportunity for any income groups that are giving at or beyond the benchmark average.
When projecting the giving opportunity for counties, we compare the county’s giving ratio against the state’s giving ratio.
Limits of the Data
We have consulted with tax experts to strengthen the study, but itemized data offer a less-than-perfect portrait of giving. People who give generously don’t necessarily itemize. For example, if they don’t own a home or they live in a state with no income tax or they don’t have high medical bills, they might not qualify to itemize.
Nor does our analysis take into account how varying costs of living or state and local taxes might affect giving. San Francisco taxpayers making $100,000 a year may have less discretionary income from which to make donations than their counterparts in Rome, Ga., for example.
Also, readers should know that the share of taxpayers who itemize can vary significantly. In states with low or no income tax, for instance, fewer individuals take deductions. That doesn’t necessarily mean their residents are stingier than peers in other states.
Generally, the proportion of itemizers increases as income level rises. Among taxpayers earning $50,000 to $70,000 in 2015, only about 40 percent took deductions. But 93 percent of taxpayers who made more than $200,000 a year filed an itemized return.
