Frequently Asked Questions

Here are some frequently asked questions to the Catalogue for Philanthropy about the Generosity Index, and their answers. If you cannot find what you are looking for, please email Anne Taylor.

1. What methodology is used in the creation of the Generosity Index?

Using published data of individual tax returns from the Internal Revenue Service, we compare the rank of each state's average adjusted gross income (AAGI) to the rank of each state's average itemized charitable deductions (AICD). The arithmetical differences between these two rankings are then themselves ranked, resulting in the Generosity Index rank.

Each year, the IRS makes available data from two years ago; thus the 2004 Generosity Index reflects IRS data from 2002.

We use IRS data because, although crude, it is telling and the best data available on a regular basis for understanding how charitable giving relates to income. In using this data, we accept the federal government's definitions of what charitable giving is, and that includes giving to religious groups, churches and many other institutions.

You may download the Excel file that we have created to formulate the Generosity Index (on our website). Please note that there are separate worksheets within the Excel file (you can click on the different sheets along the bottom), which reflect the data according to various income levels: $75K-$100K, $100K-$200K, $200K+ and All Returns.

For further information and examples of how the Index is compiled, please refer to Technical Notes on our website.

2. Do you provide analysis on the Generosity Index rankings?

We intentionally do not provide comment, analysis or interpretation of what the IRS has reported annually about the nation's personal income tax returns. We provide the relevant numbers on income and charitable deductions, and leave interpretation to others — in most cases, the media. We do not always agree with their interpretations, but we believe, on the basis of evidence, that all discussions of charitable giving are good, because they get people to think about philanthropy and in particular about their own charitable giving. We have found that this consideration increases giving, which is our purpose.

3. Your ranking doesn’t seem to take into account costs of living, which may be why so-called “wealthy states” such as Connecticut, California and Massachusetts rank lower in the Generosity Index.

Costs of living are difficult to take into account because there is no statewide data on costs of living -- that data is around metropolitan areas.

Furthermore, costs of living only kick in as a factor as you go down the income scale; at the upper reaches of income, costs of living are not an inhibiting factor, and the majority of charitable giving is done by those at the top of the income scales.

4. What is the Catalogue for Philanthropy?

We are a charitable organization sponsored by individual donors, foundations and corporations, whose support helps us to fulfil our mission: donor education. Through an annual Catalogue published each November, we provide support to small charities with operating budgets of $2 million or less. Each year, the Catalogue features 65-70 charities and provides evidence of their excellence. It is then mailed to wealthy individuals, encouraging them as potential donors to think creatively about their charitable giving.

We have Catalogues in Massachusetts, Washington DC and St Louis, with plans to start Catalogues in Los Angeles and Australia.