The holiday season is synonymous with spending money – but it’s more than just buying gifts. On Giving Tuesday alone, which lands on December 1 this year, hundreds of millions of dollars will be raised for charitable causes. However, this is just a fraction of what Americans donate throughout the year.
In a recent study, financial technology company SmartAsset dug into IRS data to find the places where residents were giving the most money for charitable causes and organizations. The study measured how much people donate as a percentage of their net income and the proportion of people in a given county who make charitable donations. According to the analysis, Yavapai County ranked among the most charitable in Arizona.
For a look at how the top counties in Arizona stacked up, check out the table below:
|Rank||County||Contributions as Percentage of Income||Percentage of Returns Itemizing Charitable Contributions||Most Generous Places Index|
|1||Maricopa County, AZ||1.73%||10.96%||40.14|
|2||Yavapai County, AZ||1.43%||9.53%||34.41|
|3||Pima County, AZ||1.25%||8.07%||29.39|
|4||Coconino County, AZ||1.26%||7.90%||29.04|
|5||Gila County, AZ||1.16%||7.72%||27.90|
|6||Graham County, AZ||1.55%||5.78%||25.47|
|7||Pinal County, AZ||0.82%||6.52%||22.47|
|8||Navajo County, AZ||1.21%||5.13%||21.49|
|9||Mohave County, AZ||0.82%||6.14%||21.49|
|10||Cochise County, AZ||0.90%||4.76%||18.43|
The study takes into account charitable contributions as a percentage of net income and the proportion of taxpayers that made a charitable contribution of any amount in any given county.
To find the most generous places, we looked at two factors in each county: how much money people donate as a percentage of their net income, and the proportion of people who made charitable donations.
To determine the amount of money that people donate as a percentage of their income, we first calculated the net income of all people in each county. To do this, we looked at tax return data and accounted for federal, state and local taxes paid. We also accounted for deductible entries, including mortgage interest, mortgage points and mortgage insurance payments. We then divided each county’s total charitable donations by its total net income to see how much money county residents are donating relative to their income.
Next, we measured the total number of individual tax returns that show charitable contributions and divided that by the total number of individual tax returns in each county. This gave us the proportion of people in each county who make charitable donations.
We then indexed and equally weighted the two factors to yield our Most Generous Places Index.
For more information on the study, including the methodology and infographic, check here: https://smartasset.com/