Some thoughts on the validity of estimates of charitable giving

There is but a single source of widely-accepted estimates of charitable giving in the United States, and that isGiving USA, an annual publication of the AAFRC Trust for Philanthropy. This paper examines the validity of those estimates and raises questions that imply a need for further research in this area.Despite the improvements in the quality of the estimates over the years, there remain conceptual, empirical and procedural problems of which all users of the numbers should be aware. The conceptual problems are largely a matter of definition, and it is argued that grants by private foundations should be excluded from the total because foundations themselves are charitable recipients of funds from the rest of society and their inclusion results in double-counting. The empirical problems arise from defects in much of the data from the tax files that are used as sources of information for making the final estimates; some of those defects are spelled out in detail. The procedural problems stem from the lack of comprehensive information about the amounts of charitable giving from individual donors; in making its estimates,Giving USA relies primarily on an econometric equation, some of the variables in which are questionable.