TERRE HAUTE —
Terre Haute residents are among the most generous in the nation, according to a study published by the Chronicle of Philanthropy.
The city’s residents ranked 1,127th of 11,522 cities and towns surveyed by the Chronicle, placing Terre Haute in the nation’s top 10 percent of givers to charity.
“We see folks in the Wabash Valley and their generosity day in and day out,” said Troy Fears, executive director of United Way of the Wabash Valley.
The study is based on IRS data from people who itemized charitable donations on their 2008 tax returns. Because a large segment of the population does not itemize, the study is limited in its scope. The study also leaves off data for people earning less than $50,000, again excluding a large segment of the population.
Nevertheless, the data “show an important picture of giving,” according to the Chronicle, which published its findings this week. The donations making up the study total about $135 billion, approximately 63 percent of the total amount Americans donated in 2008, according to Giving USA, the Chronicle stated.
According to the study, which is available online at www.philanthropy.com, the median 2008 level of contribution in Terre Haute was $2,917 compared with $2,046 in Brazil (ranked 4,335th), $2,136 in Sullivan (ranked 5,249th) and $1,783 in Clinton (ranked 6,078th).
The median contribution in Carmel was $3,748 (ranked 126th) and $3,026 in Bloomington (ranked 449th).
When shown as a percentage of overall disposable income, Terre Haute’s residents were still among the most generous, giving 5 percent of median disposable income to charity. In Brazil the figure was 3.9 percent, Sullivan 3.8 percent, Clinton 3.3 percent, Carmel 4.6 percent and Bloomington 5.2 percent.
But there is little doubt the Chronicle’s study leaves out a lot of charitable giving. Bill Tennis, executive director of Goodwill Industries of the Wabash Valley, said the “vast majority” of those making donations to Goodwill in this area do not ask for a receipt, meaning they do not plan to report the donations on their taxes.
Fears also said he believes the majority of contributions to all charities in the Wabash Valley are likely not reported on tax returns.
Many people do not bother with itemizing charitable donations, said Michael Perkins, an enrolled agent at Larrison’s Tax Service in Terre Haute. Among Larrison’s clients, only about 5 percent or less itemize charitable giving, he said.
Still, among those included in the study, some interesting conclusions emerged:
n The study showed middle-income Americans give a higher share of their discretionary income to charity than wealthier Americans. Those earning between $50,000 and $75,000 donated an average of 7.6 percent of their discretionary income to charity compared to an average of 4.2 percent for people making $100,000 or more, the study found.
Goodwill’s Tennis said his years of observation would seem to bear that out.
“The low and middle income people are our more frequent donors,” Tennis said.
n The study included religious contributions, such as donations to churches. This helped Utah, Idaho and southern “Bible belt” states make up the entire top nine most generous states by percent donated, the Chronicle reported.
Indiana ranked 22nd among the states with a median contribution level of $2,451. Illinois ranked 30th with a median contribution figure of $2,371.
n The study also found that the percentage of disposable income donated is higher for wealthy Americans who live in closer proximity to poorer ones. For wealthy people living in exclusively wealthy areas, the percentages donated were significantly smaller, the study found.
Reporter Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.
News
Related Photos
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Making it count: Goodwill donor Maxine Pearman fills out the paperwork needed in order to be able to deduct the fair market value of donated items from her tax return. Goodwill employee Jeffrey Dunning is at right. (Tribune-Star/Jim Avelis)
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Tribune-Star/Jim Avelis Records: Goodwill will give out a receipt so donors can deduct a fair market value for donated items from their taxes.
Discussion
Study recognizes Terre Haute’s charitable side
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