January 26, 2006 | Read Time: 1 minute
New statistics released by the Internal Revenue Service show that deductions claimed for charitable contributions rose from $140.6-billion in 2002 to an estimated $145.7-billion in 2003, an increase of 3.6 percent.
The increase marks the second straight year that charitable deductions rose, after falling from 2000 to 2001 as the stock market slumped and some people cut back on giving. Deductions rose by 0.1 percent from 2001 to 2002; declined by 1 percent from 2000 to 2001; increased by 11.8 percent from 1999 to 2000; and went up by 15.2 percent from 1998 to 1999.
Last year, the IRS released preliminary figures that showed a decline of less than 1 percent in the total amount written off for charitable deductions from 2002 to 2003 (The Chronicle, July 21, 2005).
The revenue service updates its numbers as it continues to analyze data on taxpayers.
The revised statistics show that the average contribution claimed on donors’ tax returns rose from $3,480 in 2002 to $3,772 in 2003. The government’s preliminary figures had shown a smaller increase.
The adjusted figures show that the percentage of returns that included write-offs for donations decreased from 31.5 percent in 2002 to 30 percent in 2003. In 2001, 30.6 percent of individual returns included write-offs for donations.
The IRS published the revised information in its Statistics of Income Bulletin for fall 2005. The report is online at http://www.irs.gov. Copies may be purchased for $39 from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, Pa. 15250-7954.
