November 2007 No. 50Table of Contents2008 IN legislature off and running |
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The relatively few households with annual income of $1+ Million contribute 20% of charitable gifts in the USA, and the vast majority of Americans with less than $100,000 household income give 36%. But to what causes do these various income groups contribute? The Indiana University Center on Philanthropy tackled that question and through a complex analysis came up with this giving pattern from 2005 census and giving reports:
| 2005 Giving by Amounts and Subsectors | |||||||||
| Household Income | Religion | UW et al Combined | Basic Needs | Health | Education | Arts | Other | Total Gifts | % of Total $$ |
| <100K | 66.7% | 8.6% | 10.4% | 3.4% | 3.0% | 1.1% | 6.8% | $89.92B | 35.6% |
| 100 - 200K | 57.3% | 10.9% | 12.4% | 5.6% | 5.7% | 2.2% | 5.0% | $19.88B | 7.9% |
| 200K - 1M | 23.0% | 11.1% | 5.8% | 5.3% | 31.9% | 14.8% | 8.1% | $91.48B | 36.2% |
| 1M+ | 16.9% | 4.02% | 3.8% | 25.3% | 25.2% | 15.4% | 9.5% | $51.27B | 20.3% |
| % of Total $$ | 40.0% | 8.75% | 7.5% | 8.7% | 18.2% | 9.1% | 7.8% | $252.55B | 100% |
You’ll note that most giving for basic needs (food, shelter) comes from relatively lower-income Americans, while the most affluent focus on health (including hospitals/medical centers), education (collegiate), and the arts.
For the full report, see www.philanthropy.iupui.edu/
Research/giving_fundraising_research.aspx.
The General Assembly perfunctorily meets two weeks after the November elections for its “Organization Day,” to ratify new leadership assignments and other formalities. Not this year. Within hours on the 20th, it suspended rules and passed legislation to back up Governor Daniels’ emergency measures that softened the impact of this summer’s property tax crisis (HB 1010). It extended deadlines for counties to raise income taxes in order to offset lower-than-anticipated property tax revenue and for homeowners to apply for credits and exemptions.
Lawmakers also introduced property tax relief proposals – HB 1001 that includes the governor’s entire package of property tax reforms and 11 Senate bills that break the complex interrelated issues into separate pieces of legislation. House Speaker Bauer (D) said one massive bill allows Representatives facing re-election in 2008 to argue they had to go along with one bad idea in order to gain several other good ones. Senators argued that their discrete bills enabled a clearer focus on the several distinct aspects of the big property tax problem.
House committee hearings on the tax reform legislation begin next week (local times):
Senate committees will meet in Statehouse Rm 431:
Several powerful groups will likely lobby for revisions in the Governor’s plan and that proposed by a special bipartisan Tax and Financing Policy Commission chaired by Sen. President pro tem Long (R).
In short, the 2008 session will be lively.
Gaming taxes. Since 1989 when Indiana law legalized certain gaming activities, Hoosier Lottery profits and various taxes on other gambling put $9.6 Billion into the state’s treasury. Most of the wagering is at casinos, nearly $2.7B in FY 07; the lottery took in $816 Million, charity events $533M, and horse tracks $182M in FY 06. About $236M of that goes toward cutting auto excise taxes.
Experts say lottery revenues have proven to be fairly stable and could be expected to hold up during economic downturns, but casino tax income has yet to be proven as reliable. Indiana casinos attract visitors from surrounding states, bringing other spending as well. So far, these state budget benefits appear to be outweighing concerns about gaming addiction.
State Health Index. Indiana is not doing well on several important measures of health in a new nationwide ranking by WellPoint, the USA’s largest health benefits company. Indiana is 29th among the 50 states in maternal and prenatal care, 43rd in preventive care, 42nd in lifestyle factors, 37th in behavioral health, and 43rd in morbidity and mortality. To improve these standings, Indiana must focus on early prenatal care, low birthweight, physical activity levels, cigarette smoking, adult flu immunizations, diabetes, and heart disease.
Community Focus Funds. One-third of Indiana counties will get shares of a $13 Million program of long-term community development grants. They range from water and sewer projects to work on libraries, fire stations, and downtown revitalization. Check them out at www.in.gov/lgov/index.htm.
After 18 months of deliberations, the Panel on the Nonprofit Sector sent its recommendations to Congress on ethical conduct, accountability, and transparency for charities and foundations. It is a guide for nonprofit boards to evaluate and improve their own operations. United Way’s Brian Gallagher is a panel member, and Independent Sector’s CEO staffed it. The report can be downloaded at www.nonprofitpanel.org. Take a read!
Overall, charitable gifts from American businesses rose 4.8% from 2005 to 2006, the Committee Encouraging Corporate Philanthropy says. Its report—Giving in Numbers 2007— is based on a poll of 136 prominent companies—including 45 of the Fortune 100—that together give $11.2 Billion in corporate gifts. One-third increased their gifts by 10% or more because of their strong profits, improved measurement of pre-existing giving, corporate growth, the launch of new multi-year funding initiatives, and more accurate valuations of pro bono services. But 21% decreased their charity due to drops in non-cash gifts when their higher hurricane-related disaster relief concluded, corporate spin-offs, end of multi-year grants, and Medicare policy changes on pharmaceutical product donations. For more details, see www.corporatephilanthropy.org.
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