Recent research shows some unexpected links between income and giving.
Here are the highlights:
- Charitable giving plays an even larger role in the economy than is suggested by some $260 billion in annual contributions. Each dollar of giving appears to create $19 of extra national income, according to a book released this past weekend.
- Demand for nonprofit services gets proportionately bigger, not smaller, as a locality’s income rises, a Federal Reserve economist finds.
- The philanthropy of the wealthy may not hinge on tax incentives to the degree many believe. In one new survey, a majority of wealthy givers say they would contribute the same amount if the estate tax were abolished. Ditto, they said, if they could no longer deduct the value of gifts from their taxable income.