Charitable Contributions to International Relief and Development

This paper uses 1988-1991 state-level data to examine the effects of tax policy, income, and sociopolitical characteristics on charitable contributions to international relief and development. Unlike assistance to domestic religious, educational, cultural, health, and social welfare institutions, donations to organizations that primarily benefit foreigners provide no direct consumption value to the donor and are not subject to crowding-out by state and local governments. The paper finds that this type of charitable giving is sensitive to changes in both income and tax rates. The educational composition, age distribution, religiousness, and political orientation of each state are also important determinants of donative behavior.