Press Release

New Report Reveals Trends in Charitable Contributions in the States

New Report Reveals Trends in Charitable Contributions in the States

Report Finds Strong Relationship between State Tax Rates
and Philanthropic Giving

Arlington, VA (Sept. 23, 2015)— An increase in a state’s personal income tax burden is associated with a decrease in the state’s rate of charitable giving, according to the new report, The Effect of State Taxes on Charitable Giving, released today by the American Legislative Exchange Council (ALEC). The report examines patterns of philanthropic contributions in the states over time and uses rigorous economic analyses to draw significant conclusions about charitable giving in the United States.

“Charitable giving is an important aspect of civil society that is often not taken into consideration in terms of economic policy and growth,” said Jonathan Williams, Vice President of the ALEC Center for State Fiscal Reform. “This report aims to start a conversation about what steps state policymakers can take to encourage tax competitiveness, economic opportunity and philanthropic donations.”

The report is written by Jonathan Williams, William Freeland, research analyst for the ALEC Center for State Fiscal Reform, and Ben Wilterdink, research manager for the ALEC Center for State Fiscal Reform. The report reveals that states with higher rates of economic growth grow total charitable giving at a faster rate than states with low rates of economic growth.

To download a copy of The Effect of State Tax Rates on Charitable Giving, visit http://www.alec.org/publications/2015charitablegiving/.