Wealthy giving less as middle class gives more

Who knew that the wealthy are giving less as the middle class gives more. Using IRS data for an article As Wealthy Give Smaller Share of Income to Charity, Middle Class Digs Deeper  Alex Daniels presents some surprising insights on Philanthropy.com.

This seems to be a different  form of inequality  and a challenge to the trickle down theories.

He writes as follows….As the recession lifted, poor and middle class Americans dug deeper into their wallets to give to charity, even though they were earning less. At the same time, according to a new Chronicle analysis of tax data, wealthy Americans earned more, but the portion of the income they gave to charity declined.

Using the IRS data, The Chronicle was able to track gifts to charity at the state, county, metropolitan-area, and ZIP code levels. The data were for gifts to charity among taxpayers who itemize deductions on their tax forms. It captured $180-billion that was given to charity in 2012, or about 80 percent of the total amount given to charity as tabulated by “Giving USA.”

The Chronicle study found that Americans give, on average, about 3 percent of their income to charity, a figure that has not budged significantly for decades. However, that figure belies big differences in giving patterns between the rich and the poor.

The wealthiest Americans—those who earned $200,000 or more—reduced the share of income they gave to charity by 4.6 percent from 2006 to 2012. Meanwhile, Americans who earned less than $100,000 chipped in 4.5 percent more of their income during the same time period. Middle- and lower-income Americans increased the share of income they donated to charity, even as they earned less, on average, than they did six years earlier.

Read the full article for many other surprises  As Wealthy Give Smaller Share of Income to Charity, Middle Class Digs Deeper