Wealth & Generosity by State A Report by NewTithing Group, September/October 2006

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1 Wealth & Generosity by State A Report by NewTithing Group, September/October 2006 Wealth & Generosity by State concludes that total individual philanthropy in America would rise $27.5 billion annually (14.83%), if affluent income tax filers 1 in the majority of U.S. states gave as generously as do their peers in the five most charitable states. By donating as generously as The Most Charitable Five, thirteen states would increase their individual giving by over 20% a year. The study defines generosity by depicting gifts as a proportion of investment assets. The study estimates asset levels at year-end -- after living expenses -- and thus reflects differences in cost-of-living amongst states. This formula also provides a meaningful gauge of generosity amongst the affluent because investment asset levels account for surplus income. Based on an analysis of six tax-years, , the study focuses on the charitable giving capacity of affluent filers because on average, more modestly situated filers donate a higher proportion of investment asset wealth to charity. Overall, generous states ranked low in wealth, while wealthy states ranked low in generosity. Specifically, none of the most generous ten states, those with wealthy filers donating the highest proportion of investment assets to charity, ranked within the top quarter for aggregate wealth. Utah, for example, had the most generous wealthy filers, who donated 1.63% of a relatively modest $31.29 billion in aggregate investment asset wealth 2, followed by Oklahoma (1.05%), Nebraska (1.04%.), Minnesota (0.90%), Georgia (0.88%), Wyoming (0.86%), South Carolina (0.85%), Colorado (0.822%), Mississippi (0.821%), and North Carolina (0.81%). Conversely, none of the wealthiest ten states, measured by the aggregate assets of affluent filers, ranked within the top third of U.S. states for generosity. The largest number of affluent tax filers, for example, reside in California, who rank 22nd in generosity and hold an estimated $1.04 trillion in aggregate investment assets, followed by affluent filers in New York ($794 billion), Florida ($533 billion), Texas ($465 billion), and Illinois ($331 billion). The next five wealthiest states, concludes the study, are New Jersey ($291 bill.), Pennsylvania ($280 bill.), Massachusetts ($266 bill.), Ohio ($189 bill.), and Connecticut ($187 bill.). If affluent income tax filers in the five wealthiest states (California, New York, Florida, Texas, and Illinois) gave as generously as do their well-off peers in the The Charitable Five, individual giving in the U.S. would increase $13 billion a year. Wealthy Californians and New Yorkers alone would account for $6.6 billion of the increase in philanthropy, which alone would boost U.S. individual giving by nearly 4%. Wealthy filers in Georgia displayed the most generosity with the most wealth, donating 0.88% of $157 billion in aggregate investment asset wealth, putting them fifth in generosity and fourteenth in aggregate assets. Wealthy filers in Minnesota also displayed philanthropic clout relative to asset wealth, donating 0.90% of $99 billion, ranking fourth in generosity and twentieth in aggregate assets. Many of the states in The Generous Ten came either from the South, the Western Mountain region, or the Midwest. Five southern states made The Most Generous Ten, Oklahoma (#2), Georgia (#5), South Carolina (#7), Mississippi (#9), and North Carolina (#10). In the West, three Mountain states made the top fifteen, Utah (#1), Wyoming (#6) and Colorado (#8). In the Midwest, two states earned this distinction, Nebraska (#3) and Minnesota (#4). In

2 contrast, none of the New England states made even the top half of the list for generosity. NewTithing Group s overall rankings of Wealth & Generosity by State appear at where donors can also explore tax savings and donation strategies through PrudentPal Charitable Giving Planner. Founded and chaired by philanthropist and retired money manager Claude Rosenberg, NewTithing Group is a non-profit private operating foundation and 501(c)3 committed to educating the public on how to determine the maximum affordable donation levels. 1 Income tax filers earning $200,000 or more in adjusted gross income. 2 Investment assets does not include the value of personal homes, real estate, pensions, or trusts.

3 Affluent Tax Filer Giving Commenter: : Sources: [1954] Number of Affluent Tax Filers by State- Utah - NewTithing Group- Wealth & Generosity by State- September/ October 2006 Report - newtithing.data360.org; [1955] Number of Affluent Tax Filers by State- Oklahoma - Ne

4 Relative Giving by % of AGI and % of Investment Assets by Affluent Filers Commenter: : Sources: [2130] Investment Assets per Affluent Filer by State- Utah - NewTithing Group- Wealth & Generosity by State- September/ October 2006 Report - newtithing.data360.org; [2131] Investment Assets per Affluent Filer by State- Oklahoma - NewTithing Group- Wealth & Generosity by State- September/

5 Aggregate Investment Assets, Current Giving and Potential Additional Giving by Affluent Tax Filers Commenter: : 11/28/2006 4:31 PM: Giving capacity of affluent filers is set as the average percentage of investment assets donated each year by the affluent tax filers in the five most generous states (Utah, Oklahoma, Nebraska, M... Sources: [2470] Total Aggregate Investment Assets of Affluent Filers- California - NewTithing Group- Wealth & Generosity by State- September/ October 2006 Report - newtithing.data360.org; [2471] Total Aggregate Investment Assets