Bay Area Giving Across Income Levels: Who Donates and How Much?

Using the most recent IRS tax return data from 2021, we can analyze charitable giving patterns in the Bay Area, both overall and by income level.

Key highlights include:

• 44% of households that filed taxes reported making donations to charity.
• All measures of generosity increased in line with rising income levels
• The wealthiest households (those with incomes over $200,000) are the most generous:

o?? 72% donate to charity

o?? Average donation: $24,702

o?? Donations represent 3.2% of their total income on average

• In contrast, the lowest income households (those with incomes under $50,000) donate at much lower levels, with only 24% report giving to charity.
• 91% of all charitable giving in the Bay Area came from households earning $200,000 or more a year.

It's also worth examining the charitable giving characteristics of Bay Area households that do donate, as they provide insights into the generosity levels of different income groups relative to their total income.

While high-income groups are, unsurprisingly, the most generous in terms of amount and percentage of income donated, an interesting observation emerges: The generosity level of the lowest income households (measured as charitable donations as a percentage of income) exceeds that of households earning between $50,000 and $200,000 annually. On average, the lowest income households that donate give $571 per year, representing 2.8% of their total income.

As economic conditions in the Bay Area continue to evolve, it will be interesting to monitor how these giving patterns shift in the coming years. Understanding these trends can help both charitable organizations and policymakers in fostering a culture of giving across all income levels.