Study: 33.3% of Georgia Taxpayers Report Charitable Contributions, Above U.S. Average
Monday, December 4th, 2023
Giving Season—which kicks off with Giving Tuesday and runs through December 31st—is when 30% of all annual nonprofit giving takes place. It is also when the nation’s most charitable cities are most active. Looking at the most recent IRS data available, researchers identified the locations that give the most.
These are the key takeaways from the report for Georgia:
-
Americans donate more than $215 billion to charitable causes each year.
-
Nationally, more than half of charitable contributions are made by the top 1% of earners. And ultra-high earners—those who bring in more than $10 million annually—donate nearly $60 billion per year in total.
-
In Georgia, 33.3% of taxpayers report charitable contributions, compared to 32.9% of taxpayers nationally.
-
The average amount contributed by Georgia donors is $4,503.
-
Overall, Georgia ranked 25th in the analysis.
With Thanksgiving and the winter holidays around the corner, nonprofits and charitable organizations are readying themselves for “Giving Season” — one of the busiest times of year for charities in the U.S.
The season kicks off with “Giving Tuesday”¹ and runs through December 31. According to Network for Good, 30% of all annual nonprofit giving² takes place during this time. No matter the mission, issue area, or geographic focus, Giving Season represents one of the prime occasions to support nonprofit organizations. It is also when the nation’s most charitable cities — those that have the highest percentage of taxpayers donating to charity — are most active.
While charitable organizations can raise funds through grants, events, and earned income, individual donations are a critical component of most nonprofits’ revenue mix. According to individual tax return data from the IRS, Americans donate more than $215 billion to charitable causes each year — with a disproportionate amount coming from certain segments of the population.
The largest share of total contributions comes from the country’s highest earners. Ultra-high earners — who bring in more than $10 million annually — donate nearly $60 billion per year in total. This figure represents more than a quarter of all contributions, despite the cohort representing less than 0.02% of all tax returns. Collectively, more than half of all charitable contributions are made by the top 1% of earners.
Charitable giving also varies widely by geography in the U.S. Many of the states with the greatest share of donors are found in the Northeast, which includes states where earning levels are relatively high. In Maryland and New Jersey, more than 40% of tax filers report charitable contributions, with residents of Connecticut and Massachusetts reporting donations on 39.6% and 39.1% of returns, respectively.
Another standout is Utah, where 39.9% of tax returns include donations, and where the average donation of $7,041 was the second-highest among all states. Utahns’ generosity is likely tied to the state’s highly religious Latter-day Saints population.
Interestingly, some states have relatively low levels of charitable activity but higher contributions among those who do donate. Wyoming has the nation’s largest average donation at $7,995 despite ranking 45th by share of returns with charitable contributions. Similarly, Arkansas — notably home to the Walton family — has the third-largest average contribution at $6,021 but ranks 42nd by share of contributions.
Charitable Giving by Metropolitan Area
At the local level, rates of charitable giving are also well correlated with income levels.
While 32.9% of taxpayers report charitable donations nationally, that rate exceeds 40% in affluent metropolitan areas such as Washington, D.C., Boston, and San Francisco. However, 2 of the top 3 metropolitan areas overall for rates of charitable giving are located in Utah: Provo-Orem (48.6%) and Logan (45.2%).
On the other end of the spectrum, large metro areas such as Miami (26.8%), Fresno, California (27.4%), and Las Vegas (27.6%) have the lowest proportion of tax returns with charitable contributions.
For the full report visit upgradedpoints.com