Gross Domestic Philanthropy: An international analysis of GDP, tax and giving
Out of 24 countries representing 75% of the world’s GDP, the U.S. has ranked #1 in generosity. A recent paper published by Charities Aid Foundation — Gross Domestic Philanthropy: An international analysis of GDP, tax and giving –– looked at data provided by the selected countries to determine whether a correlation existed between GDP growth and tax rates, and amounts given for charitable purposes by individuals within their countries.
Aiming to update findings previously published by CAF in 2006 around international comparisons of charitable giving, the paper provides an analysis of the relationship between GDP, tax and giving within the 24 participating countries and will hopefully stimulate further discussion and a better understanding of this important issue.
Some of the key findings to be noted:
- The top four countries in terms of charitable giving by individuals as a percentage of GDP are the United States of America, New Zealand, Canada and the United Kingdom.
- Generosity is not restricted to the Western economies analysed, showing that giving can be a global phenomenon.
- Two of the BRICS countries (Russia and India) appear in the Top 10 of countries analysed, indicating the potential of transitional economies to be future leaders in providing charitable resources.
- There is no significant correlation between levels of taxation and government spending and the amount given to charity across all taxes looked at, with the exception of employer social security charges.
- There is a correlation between charitable giving and other aspects of giving such as volunteering time and helping a stranger – backing up other data sources, which have shown that those who volunteer their time are more likely to give monetarily to charity.
To learn more about trends in philanthropic giving access the full report here.
