Study on Charity

"A new study shows that middle-class Americans give a larger share of their income to charity than the wealthy.

The study, conducted by the Chronicle of Philanthropy using tax-deduction data from the Internal Revenue Service, showed that households earning between $50,000 and $75,000 year give an average of 7.6 percent of their discretionary income to charity.

That compares to 4.2 percent for people who make $100,000 or more. In some of the wealthiest neighborhoods, with a large share of people making $200,000 or more a year, the average giving rate was 2.8 percent.

Religion is the big factor here. “Regions of the country that are deeply religious are more generous than those that are not,” the Chronicle said.

Red states give much more than blue states. The eight states where residents gave the highest share of their income to charity went for John McCain in 2008, according to the Chronicle. The seven-lowest ranking states supported Barack Obama.

The study will no doubt prompt controversy from both sides of the political aisle, with liberals saying the wealthy don’t give (and therefore should be taxed more), while conservatives will say they give more than left-leaning states.

The study also feeds into the new thread of research that argues that the wealthy are meaner and more selfish than the non-rich. The Chronicle of Philanthropy study suggests that wealthy people who live in mixed-income areas give more and are more empathetic than those who live in exclusively wealthy enclaves.

There is one important fact that is missing from all of these studies. High-income earners still account for the largest share of giving. In 2006 taxpayers with incomes over $100,000 made more than half of all donations, according to The Economist.

Of course, they also make the lion’s share of the country’s income.

But when it comes to looking for the big money in philanthropy, the wealthy and high-earners should still be the largest target group for charities."

The rich give less of their income than the middle class. Red States give more than blue. Religion is a major factor.

You need to stop moving the goal posts.

When I point out religious states tend to have higher teen pregnancy rates and unwanted pregnancies, higher divorce and crime rates you will narrowly define what constitutes a “true Christian.”

When a study like this come out you will broaden it’s definition to fit your purpose.

[quote]Sloth wrote:<<< The rich give less of their income than the middle class. Red States give more than blue. Religion is a major factor. >>>[/quote]I’m pretty sure you have me back on ignore again, but of course this is no surprise.

What is the definition of a charity in this study? I would say ignoring legitimate operating costs, more than 90% of the money you are donating to an organization should directly benefit people with less fortunate than you to be considered a charity. Here are some examples that do not count which I am sure are a huge percentage of these “charities”

  • Schools / Scholarships for any non-state school (Harvard)
  • Religious organizations (The mormon Church)
  • Political / Lobbyist related donations (Political party / Family Research Council)
  • Front groups (Too many probably fit in this category)

[quote]therajraj wrote:

When a study like this come out you will broaden it’s definition to fit your purpose.[/quote]

Oh, right, because I wrote the study and the article…

[quote]sufiandy wrote:
What is the definition of a charity in this study? I would say ignoring legitimate operating costs, more than 90% of the money you are donating to an organization should directly benefit people with less fortunate than you to be considered a charity. Here are some examples that do not count which I am sure are a huge percentage of these “charities”

  • Schools / Scholarships for any non-state school (Harvard)
  • Religious organizations (The mormon Church)
  • Political / Lobbyist related donations (Political party / Family Research Council)
  • Front groups (Too many probably fit in this category)[/quote]

http://philanthropy.com/section/How-America-Gives/621/

$200000 x 0.028 = $5600

$75000 x 0.076 = $5700

Looks pretty equal to me.

Ignoring the legitimate charities issue this is simply a case of supply and demand. Statistically the red states have the largest percentage of uneducated/poor so there is a higher demand for charity services there.