Charity Study Belies Image of Tightfisted O.C.

Although Orange County residents have a reputation for tightfistedness, a new study suggests that they give more generously to charitable organizations than do other Californians or Americans in general.

However, the county’s wealthy residents give less than their counterparts elsewhere, while those with lower to upper-middle incomes give more, according to the study by Cal State Fullerton economists.

The findings raised eyebrows among executives of local nonprofit organizations. Maria Chavez-Wilcox, president of the United Way of Orange County, the key funder of nonprofit health and services organizations, questioned the conclusions that county residents are more generous.

“We’ve been losing [contributions] every single year since 1990,” she noted. She said that the study’s numbers may have been skewed because the report includes donations to numerous educational foundations. UC Irvine, for instance, just raised $25 million, she said.

Anil K. Puri, a Cal State Fullerton economist, acknowledged that the study includes donations to schools, but defended the overall conclusions, saying the survey was based on charitable tax deductions listed on Orange County residents’ 1994 tax returns. He said the survey found that Orange County residents gave 2% of their adjusted gross income to charitable causes, while state residents gave 1.9% and U.S. residents contributed 1.8%. “We didn’t estimate anything,” he said. “Ours are hard numbers, based on data reported by the IRS.”

Puri noted that the study doesn’t include charitable contributions that aren’t deducted.

The study’s findings contradict the county’s reputation as a home of skinflints. Previous surveys have found, among other things, that donations to major local charities that serve the poor pale in comparison to those elsewhere.

A Times survey of local residents last year found that 43% hadn’t given any money to local charities in the prior 12 months, for example. In 1993, a widely recognized report by Princeton University showed that only six of 85 major metropolitan areas had lower per-capita contributions to the nonprofit sector than Orange County.

County politicians at local and national levels have underscored that image by fighting to slash funds for social services while calling for more donations from the private sector.

The new Cal State Fullerton survey also indicates that the nonprofit sector comprises a sizable portion of the economy. Researchers found that the 1,448 sizable nonreligious nonprofit organizations together accounted for $3 billion--nearly 4%--of the county’s total annual gross receipts for goods and services in 1994 and 1995.

But researchers--focusing on 1,235 active, nonreligious charities for which data is available--discovered a comparatively small number of large movers and shakers among the group. A total of 384 nonreligious groups with receipts of $25,000 or more accounted for 95.6% of the group’s receipts, while 1,064 with smaller budgets made up the rest.

Moreover, in a sample survey of 65 organizations, the larger ones expressed more confidence in future fund-raising possibilities than did the smaller ones. Of the larger outfits, 87% expect their fund-raising activities to increase in the next three years, compared with 57% of their smaller counterparts.

While the study didn’t analyze the reason for the difference, Puri said larger organizations may be more optimistic because of their greater resources. In contrast, he observed, “The [county’s recent] bankruptcy may have impacted smaller organizations’ perception about the future.”

The survey found that educational organizations comprise one-third of the county’s total number of nonprofits--twice the level of the national average. Experts say that probably accounts for much of the patterns of donations.

While the study didn’t explain why certain income groups were more generous than others, Stewart L. Long, another Cal State Fullerton economist involved in the study, speculated that wealthy Orange County residents “maybe haven’t developed the habits of giving.”

But, Chavez-Wilcox of United Way wasn’t surprised that the less fortunate give more willingly than similar groups in other areas.

Low-income residents “are closest to the problems” in Orange County, she said, and are more willing to give. “They themselves or their neighbors may need the help that the United Way and its agencies provide.”

In contrast, she added, “the people who are the furthest away from the problem don’t see the connection between their gift and somebody needing help as clearly.”

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Trickle Down

Orange County charitable giving among those with incomes of less than $200,000 roughly mirrors that statewide and nationwide. In the highest bracket, though, locals contribute a smaller percentage. Charitable donations as a percentage of adjusted gross income:

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Orange United Income County California States Under $50,000 1.4%% 1.2%% 1.0%% $50,000-$200,000 2.2% 2.1% 2.1% Over $200,000 2.4% 3.2% 3.2% All categories 2.0% 1.9% 1.8%

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Note: Study based on deducted donations

Source: Center for Nonprofit Sector Research, Cal State Fullerton

Compiled by JANICE L. JONES / Los Angeles Time