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New national philanthropy study reveals Austin … improving?

August 21, 2012

From The Chronicle of Philanthropy

The Chronicle of Philanthropy released its “How America Gives” study yesterday, a look at which areas of the country give the most to charity.

This new study is similar to the previous study that ranked Austin #48 among the 50 most populous metropolitan areas using 1997 data — the study I Live Here, I Give Here uses to measure Austin’s generosity.

For the 2012 study, which uses 2008 IRS data, there’s good news and bad news.

THE GOOD NEWS

The new study ranks Austin #32 among the top 50 largest cities, using IRS data from 2008. That is an improvement among the top 50 largest cities. But let’s look at more data…

THE BAD NEWS

According to the previous study, Austin as a city (rather than a metro area) gave 5.8% of its discretionary income. That’s income after cost of living expenses, based on 1997 IRS data.

According to the new study, Austin as a city gave 4.2% of its discretionary income in 2008, down from the 5.8% in 1997.

See the table I made from these sets of data below.

Austin, TOWN

Austin, City

2008

IRS Tax Records

1997

IRS Tax Records

Total contributions

$790.8 million

Median Contribution

$2,800

Average charitable donation

$3,913

Median discretionary income

$66,248

Average discretionary income

$67,879

Median percent of discretionary income given

4.2%

Average donation as a percent of discretionary income

5.8%

FOR PERCENTAGE OF DISCRETIONARY INCOME

FOR PERCENTAGE OF DISCRETIONARY INCOME

Rank among 50 most populous METRO AREAS

32

Rank among 50 largest CITIES

48

ALL U.S. percent of income given

4.7%

6.4%

 

Of course, there’s a caveat: These are not precise apples-to-apples comparisons, and the data collected for both studies has its limitations. You can read the details of how the Chronicle of Philanthropy performed the study here.

THE BIG QUESTIONS

Can you say our work to engage more people in local philanthropy is failing? Were we better at fundraising in 1997 than we were in 2008?

In fact, the percentage of discretionary income given across the United States between those two dates went down, too: from 6.4% in 1997 to 4.7% in 2008.

What’s going on? You can get some insight about the study from an AP story today.

We’ll have more information and local input about this study in our GivingCity Austin Fall 2012 issue, due out in November. In the meantime, there’s lots to think about.

 

 

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