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Wealthy Giving Less

Wealthy Giving Less

The new tax hikes that were enforced led to the wealthy giving less to charities last year. Data taken by Blackbaud, a company that tracks the monthly numbers for more than 3,100 non-profits, stated that charitable giving only grew by 2% compared to 4% in 2011. They claim that charitable giving amounted to $304 billion in 2012.

Steve MacLaughlin, co-author of the Blackbaud report and director of Blackbaud’s Idea Lab claims that natural disasters and cautious giving were to blame for the decrease in charitable giving. The two major disasters in Haiti and Japan in 2010 and 2011 boosted international giving. Superstorm Sandy in 2012 helped to boost giving at the end of 2012.

MacLaughlin stated that smaller non-profit organizations with less than $1 million in contributions saw an increase of about 7% last year compared to larger non-profits who only saw an increase of 0.3%.

Faith-based groups and education account for nearly half of all charitable giving in America. International affairs, healthcare, and human services organizations were those that saw the least in charitable giving.

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For information on how your charitable donation can be a deduction on your taxes, contact the tax experts of Gonzalez & Arrambide, Inc. at 956-447-9009.