Contact: Tim Stone, President
T: 415-274-2754       timstone@newtithing.org

IRS Data
Data on # of filers by state, adjusted gross income, and charitable contributions are based on the IRS Statistics of Income Bulletin, tax-years 1997-2004. Tax-year 2004 is the latest available data provided by the IRS.

Affluent Filers - Definition
“Affluent Filers” refers to income tax filers declaring $200,000 or more in adjusted gross income.

Investment Assets
NewTithing Group estimates the investment assets of average individual income tax filers based on IRS income data for tax-years 1999-2004 and market returns by asset category for each year. Includes stocks, fixed income securities, and private partnerships. Investment asset estimates for tax-free fixed income holdings were extrapolated from a three-year average of declared income for years 1999-2004 provided by the IRS Statistics of Income Division. To conservatively gauge giving capacity, NewTithing Group does not factor into investment assets the value of personal homes and possessions, nor certain holdings such as pensions, investment real estate, trusts, or farmland.

Giving Capacity of Affluent Filers
NewTithing Group has analyzed the increased giving capacity only of affluent income tax filers, i.e. those with $200,000 or more in adjusted gross income, because they give on average a lower proportion of their assets to charity (0.70%) than do less well off filers (1.17%), (those earning under $200,000 in adjusted gross income).

Total Individual U.S. Charitable Contributions
Based on estimates from Giving USA and the IRS Statistics of Income Bulletin for tax-years 1999-2004. Accounts for itemized and non-itemized charitable contributions to public charities.

Total Individual Charitable Contributions per State
Based on estimates from Giving USA and the IRS Statistics of Income Bulletin for tax-years 1999-2004. Accounts for itemized and non-itemized charitable contributions to public charities.

Charitable Contributions by Filers Earning $200,000 or more in AGI
Income tax filers with adjusted gross incomes of $200,000 or more generally report itemized deductions on their tax returns, including charitable donations. Consequently, the IRS data on such filers captures the majority of their charitable contributions.

Charitable Contributions by Filers Earning under $200,000 in AGI
Includes IRS data on itemized charitable contributions. Non-itemized contributions are not accounted for in these estimates.

Cost-of-Living Adjustments
Cost-of-living differences amongst states are generally reflected in the respective estimated asset levels held by average filers in each state. Depicting charitable gifts as a proportion of those asset levels thus provides a more level comparison of generosity amongst filers in different states.

State Budgets 2006/2007
From: “The Fiscal Survey of States,” June, 2006, The National Association of State Budget Officers. For D.C.: “The Citizens’ Budget: Fulfilling Commitments to Citizen Priorities,” Affordable Housing, Education, Health, Jobs, Libraries, Youth District of Columbia FY 2007 Budget and Financial Plan, Mayor Anthony A. Williams, March 21, 2006

Methodology for Estimating Investment Assets
NewTithing Group estimates the value of investment assets owned by average filers in each major adjusted gross income group. This capitalization method was pioneered by NewTithing Group’s chairman and founder, Claude Rosenberg, in his 1994 book, Wealthy and Wise: How You and America Can Get The Most Out of Your Giving. NewTithing Group arrives at these estimates by correlating data from the IRS Statistics of Income Bulletin with the year’s market performance in each asset category. For example, according to IRS data, in tax-year 2003, the average filer in the “$1 million to $1.5 million” adjusted gross income bracket declared (common stock) dividend income of $48,526. According to the Russell 3000 stock index, a broad proxy of U.S. stocks, average dividends in year-2003 yielded stock investors 2.32%. To estimate the year-2003 value of the stock portfolios of such tax filers, NewTithing Group asked, “What stock principal value is equivalent to dividends paying $48,526 at a 2.32% yield_” In other words, $48,526 was divided by 2.32%. In this way, NewTithing Group would estimate that by the end of tax-year 2003, the average filer in the $1 million to $1.5 million AGI group held common stocks worth $2,091,647. This method was repeated to determine asset values based on reported income on taxable and tax- exempt bonds, investment real estate, etc. These estimates are conservative because they do not count the value of a filer’s personal homes and possessions, retirement pensions, or trusts.

Newtithing Philosophy
NewTithing Group assumes that although admirable, the ancient custom of “tithing” determines individual giving levels based mainly on income, with little or no consideration for investment assets. “New-tithing” is a comprehensive budgeting approach that factors not only income and investment assets into giving decisions, but also the annual fluctuation of those assets, as well as anticipated expenditures, and tax savings from charitable gifts. Since it is designed to preserve a donor’s lifestyle, newtithing does not include as “investment assets” the value of donors’ personal homes, possessions, or retirement pensions. To follow is a definition of newtithing as a dictionary might describe it: