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Wealthy giving less to charity; Utah tops states

By WTOP Staff

DAVID CRARY
AP National Writer

NEW YORK (AP) — Even as the income gap widens, the wealthiest Americans are giving a smaller share of their income to charity, while poor and middle-income people are donating a larger share, according to an extensive analysis of IRS data conducted by the Chronicle of Philanthropy.

The Chronicle, a leading source of news coverage of the nonprofit world, said in a report being released Monday that Americans who earned $200,000 or more reduced the share of their income they gave to charity by 4.6 percent from 2006 to 2012. Those earning less than $100,000 donated 4.5 percent more of their income, the report said.

The Chronicle’s analysis was based on tax returns filed by Americans who itemize their deductions, including their charitable gifts. Rankings were compiled for states and metropolitan areas based on the ratio of contributions to adjusted gross income.

According to the report, changes in giving patterns were most pronounced in major cities, where the percentage of income that residents donated dropped markedly between 2006 and 2012. In Philadelphia and Buffalo, New York, the share of income given to charity fell by more than 10 percent; there was a 9 percent drop in Los Angeles, Minneapolis-St. Paul and Washington, D.C.

Tami Phillips of the Midnight Mission, a Los Angeles charity serving homeless people, credited gifts from low- and moderate-income people, for helping sustain its programs during the recession.

“It hits closer to home,” said Phillips. “Any day, they too could become homeless.”

The Chronicle’s editor, Stacy Palmer, noted that wealthy donors, overall, were more oriented toward support of the arts and higher education than lower-income donors, and less oriented toward support of social-service charities.

At the state level, residents of Utah were the nation’s most generous, donating $65.60 to charity for every $1,000 they earned. One factor is Utah’s large presence of Mormons, whose church practices call for them to give at least 10 percent of their income to charity.

Mississippi, Alabama and Tennessee — also with high proportions of loyal churchgoers — were next in the rankings.

At the bottom of the list was New Hampshire, where residents gave $17.40 for every $1,000 they earned. Its neighbors, Maine and Vermont, were the next lowest.

Palmer suggested that the low rankings for northern New England stemmed in part from low rates of church attendance, but also from residents’ “independent streak” and a tradition of self-reliance.

Nevada was the state with the fastest-growing rate of donations as a share of income, jumping nearly 13 percent from 2006 to 2012. Its major metropolis, Las Vegas, was the fastest-growing city in terms of generosity, rising 21 places since 2006 in a ranking of the country’s 50 largest urban areas.

North Dakota experienced the biggest decline in giving. Residents reduced the share of income they donated by nearly 16 percent, contributing $24 for every $1,000 earned on average. The Chronicle said that dip could have serious implications, given the increasing demand for social services as newcomers stream in to take advantage of the state’s oil boom.

Among the 50 largest cities, Salt Lake City had the most generous residents, giving away 5.4 percent of their incomes. It was followed by Memphis, Tennessee; Birmingham, Alabama; Atlanta, and Nashville, Tennessee.

In sixth place was Jacksonville, Florida — which trailed only Las Vegas for the biggest growth rate in giving between 2006 and 2012.

The report detailed how Jacksonville donors had rallied behind a campaign to improve the region’s public schools via a Quality Education for All fund launched in 2005 with a goal of raising $50 million. The effort has borne fruit, with Duval County’s graduation rate rising from 53.5 percent in 2008 to 72 percent in 2013, and a new campaign is underway focusing on 37 of the district’s historically lowest-performing schools.

The cities where residents gave the smallest share of their income to charity were Hartford, Connecticut; Providence, Rhode Island, and San Jose, California.

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Online:

http://philanthropy.com/section/How-America-Gives/621/

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Follow David Crary on Twitter at http://twitter.com/CraryAP

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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