Average Charitable Donations by Income Level

Charitable giving is a component of the U.S. economy and a reflection of personal values. This article explores the landscape of charitable donations by examining how giving behaviors correlate with income levels, based on publicly available data from the Internal Revenue Service (IRS).

Understanding the Data on Charitable Giving

The most detailed information on charitable giving comes from the IRS, which compiles data from taxpayers who itemize deductions on Schedule A of Form 1040. To be included in this data, a donation must be made to a qualified charitable organization recognized under Internal Revenue Code Section 501(c)(3). These organizations are typically religious, educational, scientific, or literary in purpose.

This reliance on tax data creates a limitation, as it does not capture all charitable giving. Donations from individuals who take the standard deduction are not reported to the IRS and are not included in these statistics. Consequently, the official figures represent only a portion of the total generosity, primarily reflecting the habits of those with financial situations that make itemizing deductions advantageous.

The data is defined by what the IRS considers a deductible contribution of money or property. For cash contributions, a rule allows for a deduction of up to 60% of a taxpayer’s Adjusted Gross Income (AGI) through 2025, reverting to 50% in subsequent years. For property, the limits can be more complex, often capped at 30% or 50% of AGI depending on the type of asset and the recipient organization.

Average Donations by Income Bracket

Analysis of giving patterns across income levels reveals trends in both the dollar amounts and the proportion of income donated. Data from itemized returns shows a correlation between higher income and larger average donations. As a household’s Adjusted Gross Income (AGI) rises, so does the total amount they contribute.

When viewed as a percentage of income, taxpayers in the lowest income brackets who itemize donate a high percentage of their AGI. This is often attributed to a strong commitment to specific causes, such as religious organizations, that compels giving despite limited means. The percentage then dips for middle-income brackets before rising again for the highest earners.

For instance, taxpayers with an AGI under $15,000 have reported donations representing a substantial portion of their income. As income moves into the $50,000 to $100,000 range, the average donation as a percentage of AGI decreases. For those with AGIs exceeding $200,000, and especially over $1 million, the percentage of income donated increases sharply. These high-income households give the largest dollar amounts and contribute a greater share of their earnings than middle-income groups.

The Impact of the Standard Deduction

Tax policy affects the data collected on charitable giving. The Tax Cuts and Jobs Act (TCJA) of 2017 nearly doubled the standard deduction. For the 2025 tax year, this amount is projected to be $15,000 for single filers and $30,000 for married couples filing jointly, a change that impacted charitable donation reporting.

The higher standard deduction made it less financially advantageous for many households to itemize. A taxpayer itemizes if their combined deductible expenses exceed the standard deduction amount. With the higher threshold, fewer taxpayers surpassed this level, and one study estimated this shift caused 23 million households to switch from itemizing in 2018 alone.

As a result, the charitable contributions of households that switched to the standard deduction are no longer reported on tax returns. This makes the IRS data less representative of the nation’s overall giving than it was before 2018. Though these households may continue to donate, their contributions are not part of the statistical record.

Common Giving Methods by Wealth Level

The methods used for charitable contributions vary with financial capacity. For most lower- and middle-income donors, contributions are made using cash, checks, or credit card payments directly to a nonprofit organization.

As income increases, giving strategies become more sophisticated to maximize impact and tax efficiency. A common method for high-income donors is contributing appreciated assets, like stocks or mutual funds held for over a year. Donating the security directly allows the donor to deduct its full fair market value and avoid paying capital gains tax, which provides a larger gift to the charity and a greater tax benefit compared to selling the stock and donating the cash.

Affluent individuals and retirees may use specialized giving vehicles. Donor-Advised Funds (DAFs) act like charitable investment accounts where individuals contribute assets, receive an immediate tax deduction, and recommend grants over time. Another vehicle for retirees over age 70 ½ is the Qualified Charitable Distribution (QCD), which allows a donation of up to $108,000 for 2025 directly from an IRA to satisfy a Required Minimum Distribution (RMD) without the funds being counted as taxable income.