Acton Institute Powerblog

The Power of Individual Giving

Share this article:
Join the Discussion:

It’s the beginning of tax season. Since I’m still in school, I typically have to get my returns done early so that I can include them as part of financial aid applications. This year I used H&R Block’s TaxCut software so that I could get the returns done quickly and smoothly.

One of the options that the software gives you when you are done is the option to compare your return with the national average for your income bracket. Here are some interesting results of that comparison, drawn from the 2005 tax data (the latest for which they had numbers):

Average salary/wages for my bracket: $65,453
Charitable contributions: $2,835

That means that in that income bracket the average deduction for charitable donations was 4.35%.

For 2005, individual private giving to charitable causes reached almost $200 billion (PDF), and made up the vast majority of the total $260 billion in giving reported to the IRS. “Religion” has historically been the single highest sector for allocation, topping $93 billion in 2005.

Also in 2005, Barna reported some findings on charitable giving trends, noting that the average for American household giving was 3% and that 9% “born again” Christian adults tithed in 2004.

Jordan J. Ballor Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is a senior research fellow and director of publishing at the Acton Institute for the Study of Religion & Liberty. He is also a postdoctoral researcher in theology and economics at the VU University Amsterdam as part of the "What Good Markets Are Good For" project. He is author of Get Your Hands Dirty: Essays on Christian Social Thought (and Action) (Wipf & Stock, 2013), Covenant, Causality, and Law: A Study in the Theology of Wolfgang Musculus (Vandenhoeck & Ruprecht, 2012) and Ecumenical Babel: Confusing Economic Ideology and the Church's Social Witness (Christian's Library Press, 2010), as well as editor of numerous works, including Abraham Kuyper Collected Works in Public Theology. Jordan is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary.

Comments