Generous Cedar Valley: Cedar Falls Ranks High in Study of National, State Generosity

Cedar Falls ranks 1126th among 11,522 cities nationwide in charitable contributions, according to a new study by The Chronicle of Philanthropy.

Residents as whole contributed $20.9 million to charity in a year.

The six-month-long study of data and on-the-ground reporting, “How America Gives,” ranked the generosity of the 50 states and every zip code in America.

The data for Cedar Falls shows a median contribution of $3,147 and median discretionary income of $62,023. The percent of income given was 5.1 percent.

The least wealthy Cedar Falls residents gave away the highest percentage of their income. By income level, here’s how Cedar Falls residents gave:

• $50,000 - $99,999: Percent of income given: 5.7 percent; Average contribution: $2339; Average discretionary income: $41,088; Number of tax returns: 2797.

• $100,000 - $199,999: Percent of income given: 4.9 percent; Average contribution: $4028; Average discretionary income: $82,673; Number of tax returns: 1930.

• $200,000 and up: percent of income given: 4 percent; average contribution: $11,567; average discretionary income: $290,822; number of tax returns: 573.

Total contributions in Iowa were $1 billion, with a median contribution of $2,190 or 3.9 percent of people's incomes. While Cedar Falls is above the national average, Iowa as a whole falls below national averages, which are a median contribution of $2,564 or 4.7 percent of people's incomes.

The study found that giving often depends on politics and policies. In Iowa, for example, individuals and businesses contributing to community foundation endowments can use 25 percent of the gift to offset state taxes. The combination of the credit and the federal charitable tax deduction means that someone in the highest tax bracket would pay just 40 cents for every donated dollar. Still, Iowa ranked 33rd in 51 states and territories.

Among the major findings of the study:

• The most generous residents are in the Deep South. The stingiest are in New England states.
• Residents in middle-class neighborhoods give a higher percentage of their discretionary income annually than do residents in affluent neighborhoods.
• Nonprofits and charities are pressured as government budgets shrink, and more individuals nationwide are digging deeper into their own pockets to help their neighbors.
• Utah is the most generous state, while New Hampshire is the stingiest.
• Salt Lake City tops the cities list – largely a sign of the power of Mormon tithing rules.
• Providence, RI, is rock bottom – likely a result of high unemployment and dwindling industry.
• Rich people who live in wealthy, relatively homogeneous enclaves (think Newton, MA) give a smaller share of their incomes to charity than rich people who live in diverse communities (Cambridge, MA).
• People who live in politically conservative, "red states" are more generous than those in liberal or "blue states."

The study is based on exact dollar amounts released by the Internal Revenue Service showing the value of charitable deductions claimed by American taxpayers.