Trends in giving as a share of selected types of personal outlays
and as a share of disposable personal income, 1968–2008
(2007 is most recent data on expenditure types)

Giving as a of Disposable Personal Income Giving as a of Luxury Personal Expenditures Giving as a of Essential Personal Expenditures

19.9%

17.6%

16.4%

16.7%

17.1%

17.2% 17.6%

15.2%

14.6%

6.1%

2.4%

5.7%

2.1%

5.5%

2.0%

5.6%

2.0%

5.6%

1.9%

5.8%

1.9%

7.1%

2.2%

7.3%

2.2%

7.4%

2.2%

1968

1973

1978

1983

1988

1993

1998

2003

2008

 

Charitable giving by households is a form of personal consumption. Gifts can be made from income, wealth, or both. This graph examines giving as a share of disposable personal income—the income that remains after taxes are paid—and as a share of essential and luxury expenditures.

Charitable giving was 2. 4 percent of disposable (after-tax) personal income (DPI) in 1968. It fell to 1. 9 percent of DPI in 1988 and rose to 2. 2 percent (its current level) by 1998.

From disposable income, households must pay for shelter, food, clothing, utilities, and gasoline. Giving was just over 6 percent in 1968 of these essential expenditures and declined to 5. 6 percent by 1988. It rose to 7. 1 percent by 1998 and was an estimated 7. 4 percent in 2007 (the most recent year for expenditure data). Essential expenditures were one-third ( 33 percent) of total personal consumption expenditures for 2007.

Households also choose other expenses. These include restaurant meals, travel, jewelry, tobacco and alcohol, and recreation (spectator sports, movies, amusement parks, and more). Giving was 19. 9 percent of these “luxury” expenditures in 1968 and was 17. 6 percent in 2007 (most recent expenditure data). Expenditures coded as “luxury” for this analysis were less than one-seventh ( 14 percent) of total household spending in 2007.