"The overall growth in 2000 was driven in part by giving in New England states, where the average amount itemized jumped more than $470 per return, reaching $3,391 in 2000. This 16 percent increase is the largest seen in the study for the period from 1999 to 2000," according to Leo P. Arnoult, CFRE, chair of the AAFRC Trust for Philanthropy. "Tax payers in Pacific states reported the second-highest level of increase, with growth of 10 percent in the average amount claimed per return with itemized gifts. The other seven regions showed increases ranging from 2 to 5 percent from 1999 to 2000."
The large increase in New England raises the region to near the national average in itemized contributions for 2000; in 1999, New England had the lowest average amount among all regions. The growth in the Pacific states lifted that area to the third-highest region in reported giving for 2000; it had been just above the national average in 1999.
The regional analysis of giving, conducted by the Center on Philanthropy at Indiana University, examines nine measures of giving in each state, including average amount claimed in charitable gifts, itemized gifts as a share of estimated income by income group, percentage of tax returns with itemized deductions for charitable gifts, and giving by very high income tax filers.
"This type of analysis can help us identify areas where more public attention to giving and volunteering can strengthen the community," said John J. Glier, who chairs the American Association of Fundraising Counsel, whose members formed the AAFRC Trust for Philanthropy in order to offer research and education about philanthropy. "This regional study also highlights areas where giving is already strong, such as some Southern states and in Utah."
Giving USA Update #3 for 2002 finds that itemized deductions as a share of estimated income considerably exceed national averages in Utah and in six Southern states: Alabama, Arkansas, Mississippi, Oklahoma, South Carolina, and Tennessee. This is based on charitable deductions compared to income, using six different income levels.
Commenting on the findings, Patrick M. Rooney, director of research at the Center on Philanthropy notes, "Itemized contributions represent some but not all of charitable giving. Not included are contributions by tax payers who claim the standard deduction and gifts made by itemizers but not included in their tax returns. The study does not represent all contributions from individuals in the United States in 2000, but comparing these same types of figures year-to-year lets us see patterns of growth and change."
Over the past five years, itemized charitable gifts increased by 84 percent in New England, the highest rate of growth seen in the period. In the Pacific region, itemized gifts grew by 76 percent in the same time span. Most regions saw growth over five years of 49 to 65 percent. The slowest rate of growth was seen in the East South Central region which includes Alabama, Tennessee, Mississippi, and Kentucky. While growth in this region was slower than elsewhere, it is also the region with an already-high average amount claimed in contributions.
"We know a number of factors affect contributions," says Eugene R. Tempel, Ed.D., CFRE, executive director of the Center on Philanthropy. "Among these are religious affiliation and the extent of a person’s connections to others in the community. Charitable giving is one measure of social capital. It is encouraging to see continued growth in the amount claimed on tax returns in 2000, even as the high stock values of the late 1990s started to level out."
Giving USA Update #3 is available from the AAFRC Trust for Philanthropy, 1-888-544-8464 or http://www.aafrc.org/giving/. Individual copies of the Update are $35 plus shipping and handling.