CGNA: Noncash Opportunities, Aggregate Markets and Property Types, Part 2
Summary
As we get into the substance of the book we begin to explore the bread thanks to the potential of non cash assets in all forms.
This article is an excerpt from Charitable Gifts of Noncash Assets, a comprehensive guide to illiquid giving by Bryan Clontz, ed. Ryan Raffin. Published by the American College of Financial Services for the Chartered Advisor in Philanthropy Program (CAP), with generous funding from Leon L. Levy. For a free digital copy, click here, and to order a bound copy from Amazon, click here.
Total Charitable Contributions (Cash and Noncash, From All Sources Including Individuals, Corporations, and Bequests) in the United States, from 2003 to 20149
Note that the contribution amounts largely track overall U.S. economic performance in the years, before, during, and after the 2008 economic downturn. By 2014, the contribution amounts had returned to pre-recession levels.
Individual Noncash Charitable Contributions: All Returns with Itemized Donations, by Donation Types, Form 8283, Tax Years 2003 to 2013
The following table below breaks down noncash charitable deductions by asset type from 2003 to 2013. Dollar amounts in billions. All information derived from statistics and tables available from the Internal Revenue Service’s Statistics of Income at https://www.irs.gov/uac/tax-stats.
In analysis of noncash contributions, the IRS notes the following trends:
“Over the years, taxpayer donations of corporate stock have consistently represented the highest amounts of donations. Clothing has accounted for the second largest share of donations in nearly every year since 2006; the sole exception was 2007 when taxpayers reported slightly larger noncash contributions for real estate, land, and easements. However, while the amount of clothing donations has remained consistent since 2006, the amounts deducted for corporate stock and real estate, land, and easements declined significantly between 2007 and 2009. Donations of corporate stock have almost recovered since that time, but donations of real estate, land, and easements have remained relatively low. In 2007, taxpayers reported $23.7 billion in corporate stock donations, and, together, the declines in 2008 and 2009 represented a 59.0-percent decrease since 2007. For 2010, stock donations rose 37.3 percent, followed by increases for 2011 (19.5 percent), 2012 (5.1 percent), and 2013 (17.7 percent).” 10
Asset type |
2013 |
2012 |
2011 |
2010 |
2009 |
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
Total charitable deductions |
178.953 |
179.059 |
160.337 |
158.188 |
148.595 |
161.870 |
174.504 |
173.018 |
172.025 |
156.200 |
139.666 |
Stock, mutual funds, other investments |
23.916 |
22.358 |
18.663 |
17.770 |
11.465 |
15.697 |
27.708 |
26.450 |
19.761 |
17.605 |
15.786 |
Real estate & easements |
12.167 |
4.509 |
3.918 |
5.456 |
5.044 |
7.218 |
12.907 |
8.256 |
12.674 |
9.459 |
20.956 |
Art and collectibles |
1.271 |
1.380 |
0.999 |
1.275 |
0.984 |
1.511 |
1.260 |
1.304 |
1.461 |
1.212 |
0.866 |
Subtotal |
37.354 |
28.247 |
23.580 |
24.501 |
17.493 |
24.426 |
41.875 |
36.010 |
33.896 |
28.276 |
37.608 |
% of all deductions |
20.87 |
15.78 |
14.71 |
15.49 |
11.77 |
15.09 |
24.00 |
20.81 |
19.70 |
18.10 |
26.93 |
Food |
0.217 |
0.371 |
0.110 |
0.101 |
.091 |
.121 |
0.101 |
0.100 |
0.111 |
0.104 |
0.079 |
Clothing |
9.867 |
9.381 |
9.050 |
8.327 |
7.608 |
7.940 |
7.759 |
6.298 |
7.085 |
6.349 |
5.831 |
Electronics |
0.409 |
0.422 |
0.408 |
0.457 |
0.365 |
0.432 |
0.372 |
0.445 |
0.475 |
0.478 |
0.376 |
Household items |
4.223 |
3.737 |
3.626 |
3.264 |
3.226 |
3.141 |
3.921 |
3.847 |
3.860 |
3.466 |
3.224 |
Cars & other vehicles |
0.395 |
0.468 |
0.505 |
0.400 |
0.387 |
0.613 |
0.727 |
0.594 |
0.622 |
2.672 |
2.476 |
Other donations |
3.719 |
4.289 |
3.576 |
2.313 |
1.779 |
2.686 |
3.907 |
3.017 |
2.964 |
2.178 |
1.477 |
Total noncash deductions |
56.098 |
46.915 |
40.856 |
39.362 |
30.951 |
39.359 |
58.663 |
50.310 |
49.012 |
43.523 |
51.073 |
% of all deductions |
31.35 |
26.20 |
25.48 |
24.88 |
20.83 |
24.32 |
33.62 |
29.08 |
28.49 |
27.86 |
36.57 |
Comparing the total charitable contributions over this period to total deductions and specific noncash deduction amounts provides valuable insight. Consider the total charitable deductions and overall contribution numbers in the following data breakdown:
Asset type |
2013 |
2012 |
2011 |
2010 |
2009 |
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
Total charitable contributions |
334.50 |
329.32 |
298.45 |
288.16 |
274.78 |
299.61 |
311.06 |
296.09 |
292.43 |
260.26 |
237.45 |
Total charitable deductions |
178.953 |
179.059 |
160.337 |
158.188 |
148.595 |
161.870 |
174.504 |
173.018 |
172.025 |
156.200 |
139.666 |
% of donations deducted |
53.50 |
54.37 |
53.72 |
54.90 |
54.08 |
54.03 |
56.10 |
58.43 |
58.83 |
60.02 |
58.82 |
Investments, real estate, art, & collectibles subtotal |
37.354 |
28.247 |
23.580 |
24.501 |
17.493 |
24.426 |
41.875 |
36.010 |
33.896 |
28.276 |
37.608 |
% of all deductions |
20.87 |
15.78 |
14.71 |
15.49 |
11.77 |
15.09 |
24.00 |
20.81 |
19.70 |
18.10 |
26.93 |
% of all contributions |
11.17 |
8.58 |
7.90 |
8.50 |
6.37 |
8.15 |
13.46 |
12.16 |
11.59 |
10.86 |
15.84 |
Total noncash deductions |
56.098 |
46.915 |
40.856 |
39.362 |
30.951 |
39.359 |
58.663 |
50.310 |
49.012 |
43.523 |
51.073 |
% of all deductions |
31.35 |
26.20 |
25.48 |
24.88 |
20.83 |
24.32 |
33.62 |
29.08 |
28.49 |
27.86 |
36.57 |
% of all contributions |
16.77 |
14.25 |
13.69 |
13.66 |
11.26 |
13.14 |
18.86 |
16.99 |
16.76 |
16.72 |
21.51 |
Source: Liddell, P. and Wilson, J., “Individual Noncash Contributions, 2012,” IRS Statistics of Income Bulletin, Spring 2015, 3, https://www.irs.gov/pub/irs-soi/soi-a-innc-id1507. pdf.
- 9. McKeever, B. (October 9, 2015), “The Nonprofit Sector in Brief 2015: Public Charities, Giving, and Volunteering,” Urban Institute, http://www.urban.org/research/publication/ nonprofit-sector-brief-2015-public-charities-giving-and-volunteering.
- 10. Liddell, P. and Wilson, J., “Individual Noncash Contributions, 2013,” IRS Statistics of Income Bulletin Summer 2016, 3,https://www.irs.gov/pub/irs-soi/soi-a-innc-id1611.pdf.
Add comment
Comments