Faulkner County residents were among the most generous in the state last year, according to a study by financial technology company SmartAsset.
“According to IRS data, Americans donated upwards of $200 million to nonprofits last year. However, some places are home to residents making more contributions than others,” spokesman Steve Sabato said in a news release about the study.
The company used the most recent data from the Internal Revenue Service (IRS) for the study, which “measured how much people donate as a percentage of their net income, and the proportion of people in a given county who made charitable donations,” Sabato said.
The study placed Faulkner County as the fourth most generous county in the state.
It indicates Faulkner County residents contributed 31.2 percent of their net income and that nearly 46 percent of residents were contributors to charities.
Three counties earned higher rankings — Benton, Pulaski and Saline counties, earned the first-, second- and third-place rankings in that order.
About SmartAsset’s Methodology
“To determine the amount that people donate as a percentage of their income, we first had to calculate people's net income,” the study’s researchers said. “To do this, we looked at tax return data and subtracted total taxes paid, mortgage interest, mortgage points and mortgage insurance payments from total income to get each county's net income.
“We then divided each county's total charitable donations by its total net income to see how much county residents are donating relative to their income. “Next, we took the total number of tax returns with charitable donations and divided them by the number of total tax returns for each county to get the proportion of people in each county who make charitable donations. “We then indexed and equally weighted the two factors to yield our most charitable counties score.”
To view the full study, visit https://smartadvisormatch.com/data/most-generous-counties/arkansas.