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Abstract
Charitable giving in North Carolina has been on the upswing for nearly ten years, but the economic downturn is affecting individuals' ability and willingness to give. Using tax returns stripped of personal identifiers, the report examines charitable giving by North Carolina tax payers and those in the Research Triangle. Overall, charitable giving by North Carolinians is higher than the national average both in terms of dollars given and the share of gross adjusted income given. Yet, despite its relatively high levels of income, Triangle residents give less to charity than the average Tar Heel. Even among high-income earners (those with adjusted gross income of $100,000 or more), Triangle residents give about the same amount in absolute dollars, on average, but about a half percentage point less than their statewide peers. Regional and county variations in giving suggest that fundraising appeals must be carefully targeted to be successful.
Introduction
Charitable giving in North Carolina has been on the rise for almost a decade, reflecting
the generosity of people in the Tar Heel state. These gifts support a variety of
church and nonprofit activities that help create the social, economic, and cultural
fabric of local communities. Such activities touch all our lives and include programs
for children, seniors, and youth; food banks and homeless shelters; museums and
symphonies; hospitals and home health care agencies; higher education; veterans
associations; environmental groups; and more.
Support for these programs comes, in part, from the contributions of individual
donors. Yet charitable giving is constantly in flux. It varies over time and from
place to place. It often follows economic trends and responds to cataclysmic events.
Indeed, distinct patterns of giving can be seen among the counties and regions of
North Carolina.
As the economy has softened in recent years, charitable giving in North Carolina
and across the nation has shown signs of stress. This trend is affecting the ability of
many nonprofits and charitable groups to do their work and fulfill their missions.
During this economic downturn, it is important to look at past trends and understand
the underlying patterns affecting charitable giving so individuals, nonprofits,
and public policymakers can plan strategically for the future.
This report, prepared by the Urban Institute’s Center on Nonprofits and Philanthropy
for North Carolina Gives, provides new insights into the magnitude and direction
of charitable giving in the Tar Heel state. The report has four main sections:
- an overview of charitable giving in the state,
- an in-depth view of charitable giving in the Research Triangle,
- conclusions, with implications for giving in the state, and
- an appendix that presents basic measures of giving for all counties in North
Carolina.
The analysis is based on Form 1040, 1040A, and 1040EZ tax returns filed with the
Internal Revenue Service, which have been stripped of information that would identify
a particular household or taxpayer. Because only individuals who itemize their
returns can claim a deduction for charitable contributions, the estimates reported in
this report understate the actual amount of giving in North Carolina. The analysis
uses the most recent data available, namely 2006, and the time series reflects all years
in which comparable county-level data are available.
(End of excerpt. The entire
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