The graph below reveals the percent of before-tax income given to charity by class (separated into fifths):
There is a positive correlation between income and absolute giving (the higher their income, the more money they donate), but a negative correlation between income and relative giving (as incomes go down, households donate a higher and higher percentage of their income).
From Chris Uggen’s weblog via.
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Lisa Wade is a professor of sociology at Occidental College. You can follow her on Twitter and Facebook.
Comments 11
thoughtcounts Z — June 5, 2009
I'd love to see what types of charities households in different divisions (quintiles, whatever) tend to donate to. In particular, I wonder how charitable giving to one's religion differs -- if practices like tithing being more or less common explain some of this difference. But other interesting trends might pop out, too.
Shinobi — June 5, 2009
I think it might also be interesting to look at this trend over time, as well as the dataset as a whole. I think it would be interesting to segment by donation % of total income, and see what the average income came out to be, I wonder if there are variations within the quintiles that could allow us to draw some insights into donation patterns as well.
George — June 5, 2009
Let's not think the upper income people are too stingy. There is a positive correlation between income and both relative and absolute taxation. Taxation is a bit like charity, except you get thrown in jail if you don't pay it.
I'm too poor to worry about it, but I think if I gave 40% of my income to the government (which will mostly be used for various social programs ) I might not be particularly inclined to give that much additional money to charity.
Hank — June 5, 2009
George, I think if you were giving 40% of your income to the government, you would be making enough money that giving a little to charity really wouldn't hurt that much. Unless, of course, you just really need that new boat.
AR — June 5, 2009
Why is before-tax income used, instead of after-tax, which is to say, actual, income?
Frank — June 5, 2009
To me this graph shows a minimum bound on giving.
That is, even lower classes buy a few candy bars for the schools or a box of girl scout cookies or throw money into the church collection box.
There's still a negative correlation, certainly, but not as pronounced as implied by the lowest quintile's data point.
Also, as someone else implied, with all the social programs tax revenues fund, I would imagine many in the highest quintile consider a good portion of my highest quintile taxes to be effective donations.
Frank — June 5, 2009
More about the tax thing:
In fact, looking at the graphed data there seem to be two step downs, the 4th and 5th quintile give at ~2%, while the 2nd and 3rd quintiles give at around 2.5%, and the lowest quintile gives at a higher rate (again, I acknowledge that this is crude data, and thus to find any real results beyond what's given)
I note that the first two (and the two largest) bumps in marginal tax rates (10-15% and 15-25% of income) happens at $16,700 and $67,900 of income, exactly where those two "steps" occur.
Clearly not definitive of anything, but interesting to consider.
Dubi — June 5, 2009
I'm with AR (and Frank) - I think this graph is deceptive, and the trend will we eliminated if we look at actual income, after tax.
Former George — June 5, 2009
I'd like to point out, that the George who commented above is not me. I have a new name now, ever since George Harrison besmirched mine on the orange juice post, so there. I am the George who changed their name from Jenna in the comments. I notice that Original Will has the same impersonation/to common a name problem, too.
Signed,
Formerly "George"
Jamie — June 6, 2009
interpreting a correlation from this data may not be fruitful. A confidence band around these estimates might show little differences among groups.
From my perspective, an interesting conclusion is that giving takes place across all levels. Additionally, we seem to have a baseline level of giving around 2%.
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