* Research based on the latest available data on record as of June 2000. Projections on Possible Affordable Donations (‘newtithe”) are applicable to calendar yr. 2000. 1  AGI reported to the IRS includes income from investment assets, salary and wages, and reported capital gains. Our table does not include the over 62 million tax filers with AGI below $25,000 because our estimates suggest that they are already donating about as much as they can afford. 2  Reported Salary is derived from year-end 1997; conservatively estimated since it excludes 9.7% income growth between start-of-year 1998 and end-of-year 1999. (Table B-25, Economic Report of the President, 2000). 3 Investment Assets include estimated year-end 1999 value of securities, real estate, and private investments based on 1997 IRS income data, then adjusted for changes in asset values by year-end 1999. To ensure conservative estimates, our research omitted values such as: personal housing and related possessions, IRAs, 401(k)s, life insurance cash values, stock options, government savings bonds, etc... 4  Discretionary Funds are composed of reported salary, investment and other income, minus living expenses and taxes; plus assumed current-year capital gains or losses (for which we have assumed an historical annualized total return of 9.29% for common stocks, 0% for fixed income securities, and 3% for other assets). 5  Actual Donations are a weighted average of itemized donations reported to the IRS and Independent Sector’s estimate of donations made by non-itemizers. 6  Total Affordable Donations (“newtithe”) for year 2000 are calculated using NewTithing Group’s affordability models, based on estimated Investment Assets and Discretionary Funds. Suggestions of donation levels strive to account for the respective needs of each taxpayer group: For the groups represented by the four lowest levels of income, the donation suggestions assume that individuals need their investment assets to grow as much as is realistically possible. For the next two higher levels, the suggestions emphasize more moderate asset growth. Finally, at the top wealth level, suggested donations are recommended, for illustrative purposes only, so as to maintain asset wealth roughly even with inflation. 7 Tax Savings charitable donations of either cash or appreciated securities made to qualifying charities are tax-deductible. Newtithing Group assumes, from a tax savings standpoint, that filers in each tax bracket donate the most advantageous proportion of cash to appreciated securities, so that tax savings increase the amount of affordable donations. 8 True Cost of Affordable Donations estimates how much a donor would be out-of-pocket after tax savings. For example, this table estimates that average donors of AGI $75,000-99,999 who donate $2,100 would only be out-of-pocket $1,060.

Contact:  Tim Stone, Executive Vice President, NewTithing Group, T:  415-274-2754