How America Michigan Gives 2014

NOTE: A version of this posting also appears on Linkedin

Every few years, The Chronicle of Philanthropy uses IRS data to look at giving by American individual donors in its How America Gives feature.  The most recent of these appeared in the October 9, 2014 edition.   As in the past, we’ll borrow some of their data to look at giving here in Michigan as a whole as well as in three Michigan Metropolitan Statistical Areas (MSA).

About the data

Like all studies, How American Gives, has its strengths and its weaknesses.  The major weaknesses are probably these: 1) It only covers individual givers -- gifts by corporate and foundation donors are not included, 2) It only includes giving by taxpayers who itemize, and 3) Lag time -- the new study is based on 2012 data.   The major advantage of this particular study, however, is that it disaggregates its data as a result of which it is possible to look at giving by locality (state, metropolitan area, county or ZIP code) as well as by income level. 

The key piece of information reported in How America Gives is the “Giving Ratio” which is the proportion of reported charitable gifts to total Adjusted Gross Income (AGI).  Using a ratio removes community size and income from the equation.  That allows us to more clearly focus our attention on a key aspect of the local giving culture -- the relative willingness of people to forgo some amount of personal consumption or savings accumulation to, instead, support charitable activity. 

In the sections below, giving ratios are listed from high to low with communities  to the left of Michigan having giving ratios above the state average and those to the right having giving ratios below the statewide average. 

Metro Area

Overall, the Grand Rapids-Wyoming MSA had the highest giving ratio, exceeding the state average by 1.06% and the giving ratios of the other communities by somewhat larger margins.  

Grand Rapids-Wyoming 4.07; Michigan 3.01%; Lansing-East Lansing 2.92%; Detroit-Livonia-Warren 2.70

We generally don’t think of 1.06% as a big difference.  When converted to dollars and cents, however, this difference of 1.06% means that Grand Rapids-area itemizers gave $4.07 to charity per $100 in AGI in comparison to a statewide average of $3.01 per $100 in AGI. 

Metro Area and Income Level

At five of the six income levels considered, the Grand-Rapids- Wyoming MSA also had the highest giving ratio exceeding the statewide ratio as well as those of the other communities.  The one exception was the $25,000 to $50,000 range where the Detroit-Warren-Livonia MSA had the highest giving ratio.

Following the national pattern, Michigan giving ratios generally declined as income levels increased.  Interestingly, the gap between the Grand Rapids-Wyoming MSA  giving ratio and those of the other communities was widest at the lowest ($25,000 and below) and highest ($200,000 and above) income levels.  At the high end, the Grand Rapids-Wyoming giving ratio also bounced back up to 4.51% after being lower at intermediate income levels.

AGI of $25,000 and Below

Grand Rapids-Wyoming 9.82; Michigan 8.57%;   Detroit-Livonia-Warren 8.35; Lansing-East Lansing 7.86%

AGI of $25,000 to $50,000

Detroit-Livonia-Warren   4.88; Michigan   4.71%; Grand Rapids-Wyoming   4.63; Lansing-East Lansing   4.23%

AGI of $50,000 to $75,000

Grand Rapids-Wyoming 4.02; Detroit-Livonia-Warren 3.56; Michigan 3.63%;   Lansing-East Lansing 3.35%

AGI of $75,000 to $100,000

Grand Rapids-Wyoming 3.57; Michigan 3.08%;   Lansing-East Lansing 2.96%; Detroit-Livonia-Warren 2.89

AGI of $100,000 to $200,000

Grand Rapids-Wyoming 3.30; Michigan 2.63%; Lansing-East Lansing 2.61%; Detroit-Livonia-Warren 2.41

AGI of more than $200,000

Grand Rapids-Wyoming 4.51; Michigan 2.72%;   Lansing-East Lansing 2.57%; Detroit-Livonia-Warren 2.28

Where can I learn about giving in my area?

This is obviously not any kind of a comprehensive look at How America Gives data for Michigan.  Readers can, however, easily take a look at the data for themselves.  To do that, an interactive tool is available on the Chronicle website.   http://philanthropy.com/article/Interactive-Explore-How/149107/#search

What makes up the three MSAs highlighted here?

Grand Rapids-Wyoming MSA includes Barry, Kent, Montcalm and Ottawa counties.

Detroit-Warren-Livonia MSA includes Lapeer, Livingston, Macomb, Oakland, St. Clair and Wayne counties.

Lansing-East Lansing MSA includes Clinton, Eaton and Ingham counties.

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Michael J. Montgomery is a fundraising consultant with his own firm, Montgomery Consulting of Huntington Woods, MI.  He is also an adjunct faculty member teaching nonprofit management in the MPA program at Oakland University in Rochester, MI.   More information on him/his firm is available at: www.montgomeryconsultinginc.com